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Do you need a party wall agreement to remove a chimney? Yes. Removing a chimney involves major structural work, and if the chimney stack is shared, this cannot be done without permission being granted from the neighbouring property.
If you discover that the chimney breast you want to remove is real, then you will almost certainly need to contact a structural engineer. Actual chimney breasts form part of the structure of a house once removed, the addition of support beams may need to be incorporated to support any masonry above.
Planning permission is not normally required to remove a chimney stack or a chimney breast from a dwelling as long as it is not a listed building or located within a Conservation Area and any repairs/infilling to the roof is done using materials which match those already used on the property.
You can not remove half of a shared chimney stack because the brick work is all tied in together and removeal of your half of the stack will cause it to become unstable.