If you're building your own home, you may not have to pay the Community Infrastructure Levy (CIL). For one house, that can easily be thousands of pounds. But the exemption isn't automatic. You must claim it before any work starts, follow each step in order, and live in the home afterwards. Miss a step and you can end up owing the full amount, sometimes with surcharges on top.
This guide covers the self-build exemption in England. Wales has its own version of CIL; Scotland and Northern Ireland don't have CIL.
Does your permission mention CIL? Check your decision notice free and we'll flag it, along with every condition you need to deal with before you start.
What is CIL?
CIL is a charge some councils make on new building to help pay for local infrastructure such as roads, schools and GP surgeries. Not every council charges it, and those that do set their own rates per square metre.
If your council charges CIL, new homes are usually liable whatever their size. Your decision notice may mention CIL, or the council may send you a Liability Notice showing how much you'd owe.
Who qualifies for the self-build exemption?
You can claim if:
- you're building the home yourself, or commissioning it (for example, paying a builder or using a self-build package company)
- you'll live in it as your main home once it's finished
- you'll keep living there for at least 3 years after it's completed
It applies to a new house or flat. It doesn't apply to homes built to sell or let.
Extensions to your own home and residential annexes have their own separate exemptions. Ask your council's CIL team which applies to you.
How to claim it, step by step
The order matters. Most problems happen when someone starts work before finishing steps 1 to 3.
Step 1: Assume liability for CIL
Send the council an Assumption of Liability form, saying you're the person who'll be responsible for any CIL. Many councils need this before they can deal with an exemption claim.
Step 2: Claim the exemption (Form 7 Part 1)
Send CIL Form 7: Self Build Exemption Claim – Part 1 to the council's CIL team. It must arrive before work starts. Many councils also say you shouldn't start until they've confirmed the exemption in writing. You can't claim it once work has begun.
Step 3: Send a commencement notice (Form 6)
Before you start work, send a CIL Form 6: Commencement Notice telling the council the date you'll start. This is separate from anything you send for planning conditions or Building Regulations. Missing it can lead to a surcharge (often up to £2,500) and, depending on your council and circumstances, can put the exemption at risk.
Step 4: Build your home
"Starting work" for CIL usually means any building work on the approved development, not just digging foundations. If in doubt, ask the CIL team what counts.
Step 5: Send the evidence (Form 7 Part 2) within 6 months
Within 6 months of completion (usually counted from the date on your Building Regulations completion certificate), send CIL Form 7 Part 2 with evidence that you built it and live there. Councils commonly ask for things like:
- your completion certificate
- proof of ownership, such as title deeds
- proof it's your main home, such as a council tax bill, utility bills or the electoral register
- evidence of your self-build VAT reclaim, a self-build warranty or a self-build mortgage
Check your council's list, as they vary. If you miss the 6-month deadline, the exemption can be withdrawn and the full CIL becomes payable.
Step 6: Live there for 3 years
If within 3 years of completion you sell the home, let the whole of it out, or stop living there as your main home, that's a "disqualifying event". You must tell the council in writing within 14 days, and the CIL becomes payable. If you don't tell them, surcharges and interest can be added.
Common mistakes that lose the exemption
- Starting work before the claim is sent or approved. This is the most common and most expensive mistake.
- Not sending a commencement notice, or sending it by a method your council doesn't accept. Check how they want it.
- Forgetting Part 2 after you've moved in.
- Selling or letting within 3 years without realising the exemption is clawed back.
- Assuming your builder or architect has done it. CIL forms are your responsibility unless you've agreed otherwise in writing.
Where to find the forms
The forms (Form 6, Form 7 Part 1 and Form 7 Part 2, and the Assumption of Liability form) are on the Planning Portal and most councils' CIL web pages. Send them to your council's CIL or infrastructure team, not the planning team, and always quote your planning application reference.
Frequently asked questions
Does every council charge CIL?
No. Many councils charge it, but some don't. Your decision notice, Liability Notice or the council's website will say. If your council doesn't charge CIL, you don't need to claim an exemption.
Can I claim the exemption after I've started building?
Generally no. The claim must be received before work starts, and once you've started it's usually too late.
Does demolition or site clearance count as starting?
It can do, depending on what's included in your planning permission. Ask the CIL team before you do any work on site.
Do I still need to deal with planning conditions?
Yes. CIL and planning conditions are separate. You still need any pre-commencement conditions approved before you start. See our guide to discharging planning conditions.
What if I need to sell within 3 years?
You can, but the CIL becomes payable. Tell the council within 14 days to avoid surcharges.
Is the self-build exemption the same as the VAT reclaim?
No. They're separate schemes. CIL is a council charge; the VAT reclaim is through HMRC. Many self-builders claim both.
The short version
- Check whether your council charges CIL.
- Send the Assumption of Liability and Form 7 Part 1 before any work starts, and ideally wait for confirmation.
- Send a commencement notice (Form 6) before you start.
- Send Form 7 Part 2 within 6 months of completion.
- Live there for 3 years, or the CIL becomes payable.
Got your decision notice? Check it free with Set to Build. We'll flag CIL if it's mentioned, and show every condition you need approved before you start.