Skip to content

Brought to you by

Dentons logo white

UK Planning Law Blog

Real opinions on the alphabet soup of planning and development from s106 agreements to CIL, PDR to DCO, BIDs to UBR, viability to profits for everyone

open menu close menu

UK Planning Law Blog

  • Planning TV
  • Who We Are

Self-build series Part 3: Self-build pitfalls fixed, but will not remedy existing injustices

By Rachael Herbert
June 20, 2019
  • Community Infrastructure Levy
  • Housebuilding
Share on Facebook Share on Twitter Share via email Share on LinkedIn

The earlier blogs in this Series have explored the pitfalls in the CIL regulations in connection with the self-build exemption (SBE). 

After much lobbying the Government appears finally to have listened.  The Government’s response on the Developer Contributions consultation confirms that the proposed amendments to the CIL regulations (that were announced as part of the Government’s Developer Contributions reform consultation) will be taken forward to make the SBE process a little easier, fairer and more forgiving. 

The draft regulations (laid before the House of Commons to come into force on 1 September 2019) ensure the penalties that result from a self-builder failing to submit a commencement notice before starting development will be softened. Instead of losing the SBE entirely, the developer will only be required to pay a mandatory surcharge equal to the lesser of £2,500 or 20% of the CIL that would apply to the development if not for the exemption (i.e. the penalty is capped at £2,500)[1], and confirm that the SBE to be carried over to an amended permission (i.e. a s73 permission), even if the development has commenced under the original permission[2].

This will not apply to wholly new applications, so careful thought still needs to be given to the potential CIL consequences if a new application is made after works have commenced under the original permission.

In addition to the changes for self-builders, the proposed amendments will also help to correct many of the pitfalls that plague the other CIL exemptions including:

  • the failure to give the commencement notice before starting development will no longer (from 1 September 2019 assuming the amendment regulations take effect) result in the loss of charitable relief or social housing relief exemption; and
  • the failure to give the commencement notice before starting development will no longer result in the loss of the exemption for residential annexes and residential extensions (from 1 September 2019 assuming the amendment regulations take effect).

However, as for the self-build exemption, the failure to give the commencement notice in advance of starting development will for each of the abovementioned scenarios give rise to a mandatory surcharge of no more than £2,500 (although the draft amendment regulations do not explicitly refer to residential extensions being subject to this penalty).

Unfortunately, the proposed amendments are not to have retrospective effect, so will not address or undo any previous injustices.  Part 4 of this Series will address this and what more is needed.


[1] Regulation 6 of the Community Infrastructure Levy (Amendment) (England) (No. 2) Regulations 2019

[2] Regulation 7 of Community Infrastructure Levy (Amendment) (England) (No. 2) Regulations 2019 proposes a new regulation 58ZA


Share on Facebook Share on Twitter Share via email Share on LinkedIn
Subscribe and stay updated
Receive our latest blog posts by email.
Stay in Touch
Rachael Herbert

About Rachael Herbert

Rachael is a senior associate in the Firm's Planning team and is based in London. She joined the Firm in August 2013 after working for four and a half years as a lawyer in Australia specializing in planning and environment work.

All posts Full bio

RELATED POSTS

  • Development
  • Housebuilding
  • Localism
  • Neighbourhood Plans
  • Planning Appeals
  • Planning Guidance
  • Planning Permission
  • Planning Policy
  • Prematurity

Prematurity back in its box again

The publication of the NPPF in March 2012 raised questions about the approach to prematurity.  Refusal on prematurity grounds has […]

By Roy Pinnock
  • Brexit
  • Community Infrastructure Levy
  • Development
  • Environmental Impact Assessment
  • Planning Policy

Brexit: A week later

What are the likely effects of the Referendum decision on planning? The real answer is that nobody knows but here […]

By Roy Pinnock
  • Community Infrastructure Levy
  • Development
  • Freedom of Information
  • Planning Obligations

Unspent 106 monies

Freedom of information requests made by the BBC suggest that local authorities in England are holding £1.5bn of unspent section […]

By Katie Scuoler

About Dentons

Dentons is designed to be different. As the world’s largest law firm with 20,000 professionals in over 200 locations in more than 80 countries, we can help you grow, protect, operate and finance your business. Our polycentric and purpose-driven approach, together with our commitment to inclusion, diversity, equity and ESG, ensures we challenge the status quo to stay focused on what matters most to you. www.dentons.com

Dentons boilerplate image

Twitter

Categories

Dentons logo white

© 2023 Dentons

  • Legal notices
  • Privacy policy
  • Terms of use
  • Cookies on this site