New Build plus 50k to council?

New Build plus 50k to council?

15:09 PM, 6th October 2015, About 9 years ago 28

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I have a small of piece of land in my garden that can fit a small 2 bed house. I went for planning advice and I was told that if i was granted planing permission, I would have to pay a CIL fee, and also contribute towards the council’s education/ highways/ affordable housing etc which could cost as much as £50k in total. CIL

The profit probably would not be up to 50k… Is there a way to go around this as I might as well just work for the council.

Many thanks

Pete

 


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Neil Patterson

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15:12 PM, 6th October 2015, About 9 years ago

I thought that can't be right and looked it up on .gov

However:

"Community Infrastructure Levy
About the Community Infrastructure Levy

The Community Infrastructure Levy is a planning charge, introduced by the Planning Act 2008 as a tool for local authorities in England and Wales to help deliver infrastructure to support the development of their area. It came into force on 6 April 2010 through the Community Infrastructure Levy Regulations 2010. Development may be liable for a charge under the Community Infrastructure Levy (CIL), if your local planning authority has chosen to set a charge in its area.

Most new development which creates net additional floor space of 100 square metres or more, or creates a new dwelling, is potentially liable for the levy.

Some developments may be eligible for relief or exemption from the Community Infrastructure Levy. Please note that strict requirements apply with regard to the timing of the exemption process and you should refer to the guidance highlighted below for details. In most cases a Commencement Notice (form 6) must also be served prior to the commencement of development, in order for the exemption to apply."

I thought it was developments of multiple properties!

Pete Moore

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15:34 PM, 6th October 2015, About 9 years ago

Thanks a lot for your input, Neil. I thought it was for multiple properties but it actually properties from 1 and above.

I will do some more research and much appreciation for the 100sqm or more advice.

Roger Rabbit

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18:06 PM, 6th October 2015, About 9 years ago

Check your councils website under planning they will have documents or webpages which lists the CIL cost. Usually its given as a flat rate for example £50 per sqm so for a 100 sqm new build it would be a £5000 fee. So just check the figure given per £/sqm and multiply by the size of your new build

You are also looking at about £500 planning application fee to get a yes or no answer in the first place

Evan Owen

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10:02 AM, 7th October 2015, About 9 years ago

If it isn't viable you should negotiate before you spend any money on the application process.

Ray Davison

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10:51 AM, 7th October 2015, About 9 years ago

I understood this requirement was being removed by this government for this sort of small developments by individuals. I must be wrong or maybe it just has not happened yet.

Stephen Reynolds

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10:54 AM, 7th October 2015, About 9 years ago

Have a look at the exemptions. Self builders are exempt if you live in it for 3 years. Just Google cil exemptions.

Pete Moore

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14:14 PM, 7th October 2015, About 9 years ago

Thank you everyone for all for your comments.

I googled CIL exemtions and it does state 3 years residency. If I do this, it would mean moving my family into a much smaller house which I don't mind but apart from the CIL, it states on the council website, that I will have to demonstrate the level of contribution I would be providing to meet Core Policy 3/ section 106 (affordable housing contribution). I really hope it will be removed by the government as all this is quite discouraging.

Thanks once again.

AnthonyJames

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16:38 PM, 7th October 2015, About 9 years ago

Roy - you are confusing S106 and CIL taxes. The Government has exempted small sites from S106, but anyone with a site in a council that has CIL receives no exemption, unless they are a self-builder.

Evan - you can only negotiate under the S106 regime; viability assessments are not permitted with CIL.

I'm surprised this particular council is still attempting to charge S106 for social housing, on top of CIL: CIL is meant to replace S106 entirely. However there is currently a nationwide exemption from S106 for all developments under 10 units and 1000 m2, so Pete's site will be exempt.

Pete, you can avoid CIL if you secure planning permission and then sell the site on to another self-builder. You don't actually have to build it and live in the house yourself. Just make sure you don't start any work on the site if you intend to sell it on, otherwise CIL will be charged.

In general CIL is a deeply unpleasant and regressive tax. It hits small builders and developers the hardest, and if it's set too high, it will virtually kill off the small-build market in certain boroughs.

Stephen Reynolds

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16:55 PM, 7th October 2015, About 9 years ago

If the site is small you should consider putting in a basement. Depending on the area you live in it could add significant value to the property whilst making it more desirable to house your family.

Pete Moore

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17:36 PM, 7th October 2015, About 9 years ago

Thanks Tony for your priceless comments. Assuming planning goes well, would I be permitted to rent it out? The site is in Enfield Borough, when I went to the council for pre-planning advise last month, the lady saw the draft plan in which the internal total floor space was approx 112sqm (upstairs & downstairs). I was told I would pay about £7,000 towards library, education etc and about £46,000 or more towards some S106 or CIL or vice versa. (Sorry this is all new to me).
Seems like if planing is secured, sell to another self builder.

Stephen, maybe i'm wrong but I'm not sure if they'll agree to a basement as none of the surrounding houses have basements.

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