Living City Initiative (LCI)
Letter of Certification
You need a Letter of Certification to claim relief for works carried out under most of the LCI reliefs that apply to residential property.
The Local Authority will issue a Letter of Certification for works carried out in their Special Regeneration Area (SRA).
The Letter of Certification confirms works completed comply with LCI rules, including:
- Planning rules and building regulations are satisfied
- and
- the costs relate to conversion and refurbishment work allowed under the scheme.
How to get a Letter of Certification
Getting a Letter of Certification is a two-stage process:
- Before you start any works:
- Apply to the relevant local authority for a Letter of Certification.
- The local authority will look for information about the property and proposed works including planning permission.
- When the local authority is satisfied they will issue you a Unique Reference Number (URN) for your application.
- After works are completed:
- Contact the local authority citing the URN.
- The local authority may request details of refurbishment or conversion works and associated costs. They may carry out a site visit or other checks.
- When the local authority is satisfied they will issue you a Letter of Certification.
Developers and Letters of Certification
Developers who are refurbishing or converting a property to sell to someone else should apply for a Letter of Certification in the same way.
When the property is sold by the developer, they will:
- give the Letter of Certification to the new owner
- and
- tell the new owner what percentage of costs related to the developer's conversion or refurbishment of the property.
The new owner can claim LCI relief. Their qualifying expenditure will be a portion of the purchase price calculated using the percentage provided by the developer.
For further information on the Owner-Occupier Residential Relief, please see Tax and Duty Manual Part 10-13-01a.
For further information on the Living over the Shop Relief, please see Tax and Duty Manual Part 10-13-01b.
Next: Claiming Owner-Occupier residential relief