Guide

Claim CIL exemptions and relief

How to claim exemptions and relief from the Community Infrastructure Levy. Covers self-build, charitable relief, social housing relief, and exceptional circumstances relief.

Construction & Property UK-wide

CIL exemptions and relief can significantly reduce your development costs. However, they must be claimed correctly and before development commences - there's no retrospective relief.

This guide explains each type of exemption, eligibility criteria, how to claim, and the clawback rules if conditions aren't met.

Types of exemption and relief

Self-build exemption

The self-build exemption provides full exemption from CIL for individuals building their own home to live in.

Eligibility criteria

  • The dwelling must be built by an individual (not a company or developer)
  • The individual must intend to occupy the dwelling as their sole or main residence
  • The dwelling must be occupied for at least 3 years from completion

How to claim

  1. Before commencement: Submit Form 7 (Self Build Exemption Claim) to the charging authority
  2. Include evidence of your intention to occupy (proof of residence, statement of intent)
  3. Await formal exemption notice
  4. Submit Commencement Notice before starting

Clawback rules

If you don't occupy the dwelling as your main residence for 3 years, or you dispose of it within 3 years:

  • Within 1 year: Full CIL becomes payable
  • Years 1-3: Reduced clawback on sliding scale
  • After 3 years: No clawback

Note: "Disposal" includes sale, gift, or lease for more than 7 years.

Charitable relief

Registered charities can claim relief from CIL when developing land for charitable purposes.

Types of charitable relief

  • Mandatory relief: Development by charities for charitable purposes (100% relief)
  • Discretionary relief: For development by charities for investment purposes (where charging authority has adopted)

Eligibility criteria

  • Must be a registered charity
  • Development must be used for charitable purposes
  • For mandatory relief: the charity must own the land and the development must be wholly or mainly for charitable purposes

Clawback period

If the use changes from charitable purposes within 7 years, CIL becomes payable. This includes:

  • Sale to a non-charity
  • Change of use away from charitable purposes
  • Lease to non-charitable occupier

Social housing relief

Development of social housing is eligible for relief from CIL.

Qualifying social housing

  • Dwellings let at social rent by a private registered provider
  • Dwellings let at affordable rent by a private registered provider
  • Shared ownership housing
  • Dwellings let to qualifying persons at no more than 80% of market rent

How to claim

  1. Submit claim form before development commences
  2. Provide evidence of social housing status (registered provider confirmation, nomination agreement, etc.)
  3. Await relief notice from charging authority

Clawback period

If qualifying use ceases within 7 years, CIL becomes payable. The amount clawed back depends on the proportion of floor space that ceased to qualify and the time elapsed.

Exceptional circumstances relief

This discretionary relief is available where CIL would make development unviable. It's rarely granted and requires exceptional justification.

Criteria

  • The charging authority must have adopted exceptional circumstances relief (not all have)
  • You must demonstrate that paying CIL would make the development unviable
  • A Section 106 agreement must be in place (showing you're already contributing)
  • Relief must not constitute state aid

Process

  1. Check whether your authority has adopted exceptional circumstances relief
  2. Prepare a viability assessment demonstrating unviability with CIL
  3. Apply before commencement with supporting evidence
  4. Await determination (authority can accept, reject, or offer partial relief)

Note: This relief is very rarely granted. Don't rely on it in your viability appraisal without strong grounds.

Step-by-step: Claiming CIL relief

  1. Identify potential reliefs early

    Review your development against relief categories during land appraisal. Factor potential relief into your financial model, but don't assume it until confirmed.

  2. Check your authority's relief policy

    Download the CIL Charging Schedule and confirm which reliefs are available. Some authorities haven't adopted discretionary reliefs like exceptional circumstances.

  3. Gather evidence before planning submission

    Start collecting documentation you'll need: charity registration certificates, registered provider status, proof of residence for self-build, viability assessments for exceptional circumstances.

  4. Submit relief claim before commencement

    Use the correct form (Form 7 for self-build, specific forms for other reliefs). Submit with full supporting evidence. The charging authority must respond before you can start.

  5. Await and keep the relief notice

    Don't start development until you have formal written confirmation of relief. Keep this document safely - you'll need it if there are future queries.

  6. Submit Commencement Notice

    Even with relief, you must submit a Commencement Notice before starting work. This confirms commencement date for clawback period calculations.

  7. Comply with relief conditions throughout clawback period

    For self-build: occupy as main residence for 3 years. For social housing: maintain qualifying use for 7 years. For charity: maintain charitable use for 7 years.

  8. Document compliance

    Keep records proving compliance: council tax bills, tenancy agreements, charity accounts. You may need to demonstrate compliance if the authority queries the relief.

CONSTRUCTION & PROPERTY Advantage

Developers: Relief opportunities for mixed schemes

On mixed developments, you can claim relief on qualifying elements:

  • Affordable housing: Social housing relief on affordable units, even within a market sale scheme
  • Community facilities: Charitable relief on community space if operated by a charity
  • Custom build: Plots sold to self-builders may qualify for self-build relief (the buyer claims)

Structuring tip: Consider how ownership and tenure structures affect relief eligibility. Sometimes different structures achieve the same outcome with different CIL liabilities.

GOV.UK CIL guidance

Common mistakes to avoid

  • Claiming after commencement: Relief must be claimed and confirmed before development starts. There's no retrospective relief.
  • Not submitting Commencement Notice: Even exempt development needs a Commencement Notice. Missing it can trigger surcharges.
  • Ignoring clawback periods: If you change use within the clawback period, CIL becomes payable with interest. Plan for the long term.
  • Incomplete evidence: Relief claims without full evidence will be rejected. Provide everything the form asks for.

Community Infrastructure Levy explained

What the Community Infrastructure Levy (CIL) is, how it's calculated, when it's payable, and how it differs from Section 106 agreements. Essential reading for developers undertaking new construction.

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Navigate Section 106 agreements

How to understand, negotiate, and manage Section 106 planning obligations. Covers what can be requested, the three legal tests, viability negotiations, and modifying existing agreements.

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