The short version
- · The self-build CIL exemption removes the levy entirely under Regulation 54A.
- · Form 7 Part 1 + Form 6 must reach the council before any work starts.
- · Form 7 Part 2 within six months of completion, with evidence.
- · Three-year occupation rule: sell, let or move out and the council claws back the full amount.
- · Not every council charges CIL — check the charging schedule first.
What is the Community Infrastructure Levy
CIL is a charge councils in England can levy on new development to fund local infrastructure — roads, schools, GP surgeries, parks. It's set per square metre of new floorspace, with rates that vary by zone within a single council area. The full machinery sits in the Community Infrastructure Levy Regulations 2010, as amended several times since.
For a typical 150m² self build in a CIL-charging area, the levy can run from tens of thousands to over £30,000. The self-build exemption removes that — but only if you follow the procedure exactly.
Check your council charges CIL at all
Roughly half of English councils charge CIL. The rest haven't adopted a charging schedule, which means there's nothing to be exempt from. The first thing to do is open your council's website and search "CIL charging schedule" — if the result is "we do not currently charge CIL," your work is done.
Where CIL applies, the schedule will show £/m² rates by zone and use class. Self-build dwellings sit under the residential rate. Multiply the rate by your gross internal floor area to see what the charge would be without the exemption.
Regulation 54A: the legal basis
Regulation 54A says a person is exempt from CIL on a dwelling they have built (or commissioned to be built) and intend to occupy as their principal residence, provided the procedural and disclosure conditions are met. The wording matters — the build must be "by or on behalf of" the person claiming, not bought from a developer.
Custom build counts. Community-led counts. Buying a completed new-build from a housebuilder does not — even if it's a one-off architect-designed house. The route through CIL exemption is about who commissioned the work, not what the building looks like.
The form sequence — get this right
Three forms. The order is non-negotiable.
- Form 7 Part 1 — Self Build Exemption Claim. Submitted after planning permission is granted, before any work starts. The council reviews and acknowledges (in writing). You can't proceed until you have that acknowledgement.
- Form 6 — Commencement Notice. Tells the council the date work will begin. Must reach the council before commencement. "Commencement" in CIL law tracks planning law — usually the first material operation on site (foundation pour, demolition of an existing building if applicable).
- Form 7 Part 2 — Self Build Exemption Claim, Supporting Evidence. Submitted within six months of completion. Council Tax certificate, mortgage statement, title deeds. Confirms you occupy as principal residence.
Skip step 1 or step 2 and the exemption is gone — there's no retrospective fix. Skip step 3 and the exemption is withdrawn after the deadline. This is the single biggest source of avoidable self-build tax bills.
The three-year occupation rule
Regulation 54B lists disqualifying events. If, within three years of the completion date, you:
- · Sell the dwelling, or
- · Let it out as a tenancy, or
- · Cease to occupy it as your principal residence (including holding it as a second home or holiday let),
…the council can issue a notice reclaiming the full CIL amount as if the exemption had never applied. Inheriting it doesn't trigger the rule; selling it does. Re-letting after the three years are up doesn't trigger it; doing so at 2 years 11 months does. Watch the calendar carefully if your circumstances might change.
Extensions over 100m² and annexes
Two related exemptions sit alongside the new-dwelling one. Regulation 54C covers residential extensions where new floorspace exceeds 100m² — Form 9. Regulation 54D covers self-contained annexes (granny flats, garden offices counted as ancillary residential use) — Form 10.
The procedural rules are similar — pre-commencement claim, post-completion evidence — but the three-year clawback rules differ. Annexes can't be sold separately from the main dwelling within three years without clawback; extensions don't have that constraint but the dwelling occupation rule still applies.
Two worked examples
150m² new build, £150/m² CIL zone, owner-occupier intending 10+ year stay
Notional CIL: 150 × £150 = £22,500. Owner submits Form 7 Part 1 the week planning is granted; council acknowledges within 14 days. Form 6 submitted with the construction programme. Build runs 14 months, Council Tax registration in month 15, Form 7 Part 2 submitted in month 17. £22,500 saved, three-year clock starts on completion.
180m² new build, exemption lost on Form 6 timing
Owner submitted Form 7 Part 1 and got acknowledgement, but the groundworker arrived on site before Form 6 was filed. Council issues a CIL liability notice for the full amount. There is no retrospective fix — the dwelling becomes a £30,000+ tax bill. This is preventable with a checklist.
Check your eligibility
Five questions covering the eligibility and procedural conditions. The result is an indication, not legal advice — confirm with your council's CIL officer before relying on it.
Interactive — CIL exemption checker
Do you qualify for the self-build CIL exemption?
The Community Infrastructure Levy can run to tens of thousands per dwelling. The self-build exemption removes it entirely — but the rules are strict, the paperwork must come in the right order, and not every council charges CIL in the first place. Check your council's CIL charging schedule before assuming you owe anything.
Are you building a new single dwelling for your own occupation?
Extensions over 100m² and self-contained annexes have similar but separate exemptions (Forms 9 and 10). This tool is for new dwellings.
Will the dwelling be built by you, or by contractors you commission directly?
The exemption covers builds done "by or on behalf of" you. Buying a finished home from a developer is not self-build.
Will you occupy it as your principal residence for at least 3 years after completion?
Selling, letting or stopping principal-residence use within 3 years claws the exemption back.
Can you submit Form 7 Part 1 (exemption claim) AND Form 6 (commencement notice) BEFORE any work starts on site?
Both forms must be received by the council before commencement. Either one missed and the exemption is lost — even if everything else is in order.
Will you submit Form 7 Part 2 (with supporting evidence) within 6 months of completion?
Council Tax certificate, mortgage statement and title deeds are the usual proofs.
Frequently asked
Do self builders pay CIL?
If the council charges CIL and the dwelling is over the threshold, yes — unless you claim the self-build exemption under Regulation 54A of the CIL Regulations 2010. The exemption removes the charge entirely. Not every council charges CIL; check your council's CIL charging schedule first.
How do I claim the self build CIL exemption?
Submit Form 7 Part 1 (Self Build Exemption Claim) to the council, wait for acknowledgement, then submit Form 6 (Commencement Notice). Both must be received before any work starts on site. After completion, submit Form 7 Part 2 with supporting evidence within six months. Miss the sequence and the exemption is lost.
What is Regulation 54A?
Regulation 54A of the Community Infrastructure Levy Regulations 2010 (as amended) is the legal basis for the self-build exemption. It says a person who has built or commissioned a dwelling as their principal residence is exempt from CIL, provided the procedural and post-completion conditions are met.
What is the 3-year disqualifying event period?
Regulation 54B sets out events that disqualify you from the exemption if they occur within three years of completion: selling the dwelling, letting it out, ceasing to occupy it as your principal residence. If a disqualifying event occurs, the council can claw back the full CIL amount that would have been payable.
Does the self build exemption apply to extensions and annexes?
Extensions over 100m² and self-contained annexes have separate exemptions under Regulations 54C and 54D, using Form 9 and Form 10 respectively. The rules are similar but distinct — different thresholds, different evidence, separate forms. This page focuses on new dwellings under Regulation 54A.
Can I claim the exemption if construction has already started?
No. Form 7 Part 1 and Form 6 must both be received by the council before any work starts on site. "Commencement of development" in planning law happens at the first material operation — usually starting the foundations. If you've already started, the exemption is gone for that plot.
What evidence does the council need at Part 2?
Within six months of completion you must submit Form 7 Part 2 with: a Council Tax certificate confirming the property is your residence, a mortgage statement or proof of funds showing you commissioned the build, and the title deeds. The council uses these to confirm you occupy as principal residence.
Disclaimer. This page is general information, not legal or planning advice. CIL rates, exemption procedures and disqualifying events change. Always confirm current procedure with your council's CIL officer and the Gov.uk CIL guidance before committing to a course of action.
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