Community Infrastructure Levy – what is it and how could a structural warranty help?
One Guarantee has put together a brief guide outlining what the Community Infrastructure Levy is, who is required to pay it, and what forms of relief might be available with the benefit of structural warranty insurance.
What is the Community Infrastructure Levy?
The Community Infrastructure Levy (CIL), is a planning charge first introduced by the Planning Act 2008 to help provide infrastructure support to development in local authorities throughout England and Wales. The CIL came into force through the 2010 Community Infrastructure Levy Regulations and certain developments such as self-builds can be subject to a charge under the CIL if the local authority for that area has decided to put a charge in place.
According to the Ministry for Housing, Communities and Local Government, the levy may be payable on a development that creates net additional floor space where the gross internal area of a new build is 100 square metres or more. That limit does not apply to new houses or flats, and a charge can be levied on a single house or flat of any size.
Detailed CIL guidance is available from the Ministry for Housing, Communities and Local Government on the Gov.uk website: www.gov.uk/guidance/community-infrastructure-levy
How can I be eligible for CIL exemption?
If the project is a self-build, you may qualify for exemption under the Community Infrastructure Levy. Firstly, the applicant must provide evidence of:
- Proof of the date of completion
- Proof of ownership
- Proof of occupation
In addition to the above, applicants must also have in place a specialist self-build warranty link to sb warranty page. This is a type of structural warranty which covers the cost of rectifying damage that occurs as a result of an inherent defect that was not apparent at practical completion. A self-build warranty is accompanied by Stage Completion Certificates issued to the owner/occupier of the home. A self-build warranty will also satisfy the bank or building society’s requirements providing the mortgage.
How can I get a structural warranty in place?
One Guarantee are able to provide structural warranties for self-build projects where the owner is appointing a main contractor to construct the housing unit on their behalf. While a Professional Consultants Certificate (or Architects Certificate) is seen as a popular alternative, the CIL scheme requires a recognised structural warranty to be in place should the applicant wish to qualify for the CIL exemption.