The government is considering dropping the community infrastructure levy from self-build homes
In a consultation published today (15 April) the government has proposed a number of changes to the contentious construction tax which allows councils to raise funds from developers building in their area. The money raised is used to fund local infrastructure.
In an attempt to boost housing, changes proposed by the government would make self-build homes exempt from the tax.
Planning minister Nick Boles said: ‘Our proposals would ensure that self-build homes are exempt from this levy and will make an enormous difference to people looking to realise their dream of buying a plot of land and getting a builder to build them a home.
‘We urgently need to build more homes and the proposed changes to the levy will help increase housing supply and help those businesses keen to grow.’
The levy will also be removed for buildings which are undergoing refurbishment to bring them back into use, unless the redevelopment includes an increase in floor space.
Proposed changes will also give councils who have not yet adopted the levy until April 2015 to take on board any changes.
Liz Peace, of the British Property Federation welcomed the consultation: ‘If the homes and jobs that are so desperately needed are to be forthcoming, it is imperative that schemes are not held up by flaws in the mechanics of the community infrastructure levy. We are delighted that government has worked with the industry and listened to our concerns, and that many of these issues are to be consulted upon.
’It’s now important the government gets on with implementing these amendments, particularly with development in much of the country is at a standstill.’