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Social housing relief

Developments involving social, or affordable, housing can apply for relief from CIL for the social housing part of the development. This is set out in Regulation 49 of the CIL Regulations (2010, as amended).

To qualify for relief, dwellings must be:

  • Let by a registered provider, local housing authority or non-registered provider
  • Occupied in accordance with shared ownership arrangements;

We will also offer discretionary Social Housing relief for dwellings on the condition that:

  • (a) the dwelling is sold for no more than 80% of its market value (where the market value at any time is the price which the dwelling might reasonably be expected to fetch if sold at that time on the open market);
  • (b) the dwelling is sold in accordance with any policy published by the charging authority under regulation 49B(1)(a)(iii); and
  • (c) the liability to pay CIL in relation to the dwelling remains with the person granted discretionary social housing relief.

How to claim

Social housing relief is not applied automatically. Instead, a claim for relief must be submitted to us by the claimant. To claim for social housing relief, the claimant must have first completed an Assumption of Liability form and must also be an owner of the relevant land.

Claims must be submitted to us using the relevant form, before commencement of the chargeable development. The claim must be accompanied by a map that clearly identifies the location of the dwellings to which social housing relief will apply. Accompanying information should also provide the gross internal area of the social housing dwellings, a calculation of the amount of social housing relief being claimed for, and evidence that the claim meets the Conditions of Regulation 49. Please contact the CIL Officer if you require further information.

Where insufficient information is provided, we can issue an information notice. This is a formal request for full information to be returned. There may be consequences if you then fail to comply with the information notice.

The CIL Regulations (2010) set out the full procedures for claiming social housing relief.

Important notes

It is important that you don't begin work until you submit your application for relief and you receive notice from us with a decision. If you start any work, including digging foundations, your application for relief will be refused.

If, after having being granted relief, we receive a withdrawal of assumption of liability or a transfer of assumed liability form, before the development is commenced, then your relief will be withdrawn. However, the new person/group to assume liability can apply for relief.

If you fail to submit a commencement notice before starting any work, then we will charge the full amount for CIL.

If you have received social housing relief and then wish to make a material disposal of the land, before occupation of the dwellings, to another person, then please contact the CIL Officer for guidance. You will need to provide formal notification in writing.

If you receive relief, and then a disqualifying event occurs within seven years of commencement, we will charge you CIL. Disqualifying events are explained below. CIL is registered as a land charge and so if any of disqualifying events occur, we can revoke relief and the levy will then be due.

We can also impose surcharges, in addition to the full CIL charge.

If the development is sold then we must be notified.

Disqualifying events

To qualify for social housing relief, a claimant must provide evidence that their development qualifies for the relief. In some cases, a disqualifying event may occur whereby the conditions for granting relief no longer apply and so any relief that was granted on the chargeable development can be "clawed back". There is a seven year clawback period on social housing relief, effective from the date the development is commenced. These events include:

  • Change of use from social housing to market housing

Where a disqualifying event occurs after commencement, the claimant must notify us within 14 days of the event. Failure to do so will result in a surcharge, in addition to the full CIL amount. Notification must include the area of the floor space and a map showing its location in the chargeable development.

If a disqualifying event occurs before commencement, the relief is cancelled and the full charge is due.

Whether before or after commencement, where a disqualifying event occurs, a revised liability notice must be issued showing what is payable, and a demand notice must be served to collect the CIL amount due.

Should a disqualifying event occur, it is the responsibility of the person/s who received the relief to pay the CIL amount. The current occupants of a dwelling should therefore never pay the clawback. Instead, the liability falls on the person who owned the land immediately prior to the dwelling being made available for occupation.