Great news for self-builders — a new tax break could save them several thousand pounds in council levies.
From 24th February 2014, people who build their own homes are exempt from the Community Infrastructure Levy (CIL), a tax which councils can impose on the construction of properties to raise money that can be invested in infrastructure such as roads and new schools.
The previous charge added considerable cost in some cases to the expense of building a home. For example someone building their own 4-bedroom house that is 150 square metres in size could be liable to pay £15,000 in community infrastructure levy if a council was charging £100 per square metre for residential development in that area.
The axing of the levy for people building their own home is part of the government’s determination to boost housing supply, help aspiring self-builders get their home off the ground and to encourage a struggling sector. Yet it’s not good news for councils, who stand to lose large amounts of revenue.
The relief from the community infrastructure levy will cover homes that are owner-occupied and built or commissioned by individuals, families or groups of individuals for their own use.
Use the following links to read more:
http://www.thesundaytimes.co.uk/sto/style/homes_and_gardens/Improve/article1380414.ece
https://www.gov.uk/government/news/levy-cuts-to-help-hard-working-people-build-their-own-home
