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Do I Need to Pay Section 106 or CIL on a London Residential Extension?

Most London residential extensions for owner-occupiers are exempt from CIL via the Self Build Exemption — extensions over 100m² gross internal area to your principal residence avoid CIL provided you file the exemption form (Form 9) before commencement and own/occupy for 3 years. Section 106 contributions apply to larger development (new dwellings, conversions creating dwellings) but typically not to home extensions. CIL applies to extensions over 100m² without exemption: £40–£600/m² depending on borough.

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CIL (Community Infrastructure Levy)

CIL is a per-square-metre charge on new floorspace, paid to the borough at commencement of development. Rates vary widely: Westminster £450–£600/m², K&C £400–£550/m², Wandsworth £250–£500/m², outer boroughs £40–£200/m². Owner-occupier extension to a principal residence over 100m² qualifies for the Self Build Exemption — but only if Form 9 is submitted and accepted before commencement, then occupancy continues 3 years post-completion.

02

Self-build exemption process

Step 1: Apply for planning. Step 2: Receive consent. Step 3: Submit CIL Form 1 (assumption of liability) and CIL Form 7 (notice of chargeable development). Step 4: Submit Form 9 (Self-Build Annex/Extension Exemption Claim) BEFORE works commence. Step 5: Submit Form 6 (commencement notice). Step 6: Complete works, occupy as principal residence for 3+ years. Failure to file Form 9 before commencement = no exemption, full CIL due. Failure to occupy 3 years = retrospective CIL clawback.

03

Section 106

Section 106 (S106) is negotiated planning obligation — affordable housing contributions, transport mitigation, public realm. Triggered on larger development creating new dwellings (e.g., subdividing a house, building a new dwelling), not on extensions to existing dwellings. Residential extensions almost never trigger S106 unless they create a new dwelling unit (e.g., extension + change of use to flat conversion).

More questions

Related questions answered.

Does a loft conversion trigger CIL?

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Lofts under 100m² gross internal area uplift are exempt from CIL by default. Over 100m² — yes, but Self Build Exemption applies if owner-occupier files Form 9 first.

Can I miss the Form 9 deadline?

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No — Form 9 MUST be submitted and accepted by the borough BEFORE works commence. Submitting after commencement = full CIL due. Builders should never start without confirming Form 9 acceptance.

What if I sell within 3 years?

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CIL becomes chargeable on the original development. Plan around the 3-year occupancy requirement.

Does Builderr advise on CIL?

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Yes — Form 9 submission as part of pre-commencement checks; we never start work until CIL exemption confirmed where applicable.

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