A development will be liable to pay CIL if:
- it is of a type and location for which a rate has been set in the council’s Charging Schedule;
- it includes a building into which people normally go;
- upon completion of the development the increase in floor-space will be at least 100 square metres;
- it is creating 1 or more new dwellings (building designed to be lived in), even where the floorspace is less than 100 square metres;
- it involves the change of use of a building that has been unused for a period of time, it may be liable.
A development will be exempt from paying CIL if:
- the development is not a new dwelling and is less than 100 square metres;
- it is eligible for self-build exemption and the relevant claim form has been submitted;
- it is for a structure or building into which people do not usually go, such as pylons, wind turbines; or go into only intermittently for maintenance, such as plant rooms;
- there is just a change of use with no additional floorspace and the former use has been lawful and in continuous use for a period of at least six months over the past three years ending on the day the planning permission first permits the development;
- it consists of mezzanine floors of less than 200 square metres inserted into an existing building (unless they form part of a wider planning permission which does attract CIL);
- the development is a change of use from a single dwelling to two or more separate dwellings;
- The development is for affordable housing, charitable purposes or it is self-build housing. If your proposed development is for any of these purposes, please note that you will be required to formally apply for CIL relief using the appropriate forms which are described later on in this document
- Social housing
Relief can also be given in exceptional circumstances in line with regulation 55
Who is liable
Landowners are ultimately liable for the levy, but anyone involved in a development assume liability to pay.
The person or organisation responsible for paying the CIL must send the council an 'Assumption of Liability' form whilst their planning application is being reviewed, unless the party liable for paying CIL is the planning applicant. If liability changes over time then forms can be submitted to the Council for ‘Transfer of Assumed Liability’. These are available on the Planning Portal website.
Where no one has assumed liability to pay the CIL, the liability will automatically default to the landowners and payment becomes due as soon as development commences. Liability can also default to the landowners where the collecting authority has been unable to recover the levy from the party that assumed liability for the levy.
Submitting CIL Additional Information for each new application
From Monday 18th December 2017, all planning applications, including prior approvals under permitted development will require a CIL Additional Information form if the application creates:
- At least 100sqm of new floorspace (measured as gross internal floor area)
- At least 100sqm of change of use
- A new dwelling (regardless of floor space)
Gross Internal Area (floor space)
The definition of GIA is taken from the RICS guidance and can include:
- areas occupied by internal walls and partitions (e.g. a roof plus three walls)
- columns, piers, chimney breasts, stairwells, lift-wells, other internal projections, vertical ducts etc.
- atria and entrance halls, with clear height above, measured at base-level only
- internal, open-sided balconies, walkways etc.
- structural, raked or stepped floors are property to be treated as a level floor measured horizontally
- horizontal floors, with permanent access, below structural, raked or stepped floors
- corridors of a permanent essential nature (e.g. fire corridors, toilets etc.)
- mezzanine floor areas with permanent access
- lift rooms, plant rooms, fuel stores, tank rooms which are housed in a covered structure of a permanent nature, whether or not above the main roof level.
- Service accommodation such as toilets, toilet lobbies, bathrooms, showers, and changing-rooms, cleaner’s rooms etc.
- loading bays
- pavement vaults
- garages and conservatories
- perimeter wall thickness and external projections
- external, open-sided balconies, covered walkways and fire escapes
- canopies and voids over or under structural, raked or stepped floors
- greenhouses, garden stores, fuel stores etc.
- areas with headroom less than 1.5m, except under stairways
Applications submitted before 18th December 2017
The CIL Regulations 2010 (as amended) require that the levy be applied to planning permissions granted on or after the date CIL is implemented which for Warwick District Council is 18th December 2017. The date at which the application was made is not relevant.
If you are building an extension to your property, you may not be required to pay CIL provided that:
- the main dwelling is your principal residence and you have a material interest in it, i.e. you own the freehold or have a lease of seven or more years and;
- the extension enlarges the principal residence and does not comprise an additional dwelling or;
- you are building a residential extension with an increase in floor-space of less than 100 square metres
In order to claim this exemption you must submit a ‘SB2: Self-Build Annex or Extension Claim Form’ prior to the commencement of development. Once this has been approved by the council, you must submit a Commencement Notice before starting any development on site in order to qualify for exemption.
If you are building a residential annex to create a new dwelling within the grounds of your main dwelling, you may not be required to pay CIL provided that you meet the following criteria:
- the main dwelling is your principal residence and you have a material interest in it, i.e. you own the freehold or have a leasehold of seven or more years and;
- the residential annex is wholly within the curtilage of the main dwelling
In order to claim this exemption you must submit a ‘SB2: Self-Build Annex or Extension Claim Form’ prior to the commencement of development. Once this has been approved by the Council, you must submit a Commencement Notice before starting any development on site in order to qualify for exemption.
The full CIL amount will be payable if within three years of completion:
- the main house is used for any purpose other than as a single dwelling, or
- the annex is let, or;
- the main residence or the annex are sold separately from one another
Self build properties
Self-build homes are exempt from CIL, subject to various criteria. The category of ‘Self-build’ applies to anyone who is building their own home or has commissioned their home from a contractor, house builder or sub-contractor. Self-build exemption also applies to community self-build projects.
In order to claim CIL exemption for a self-build dwelling, you must submit ‘SB1: Self-Build Exemption Claim Form Part 1’ and have it agreed by the Council before commencing development.
‘SB1:Self-Build Exemption Claim Form Part 2’ must then be submitted within 6 months of completing the dwelling and you must provide additional supporting evidence to confirm that the project is self-build.
You must then own the property and occupy it as your principal residence for a minimum of three years after the development is completed. If within the first three years you want to sell or rent out the property or stop using it as your main dwelling, you must notify the Council within 14 days of the sale/rent.
The CIL chargeable amount which was originally waived will then be payable in full. Failure to notify the Council that you wish to sell/rent your dwelling will result in enforcement action.
Change of use
If a building has not been in continuous lawful use for a period of at least six months over the past three years ending on the day the planning permission first permits development, then the development will be liable for CIL. Otherwise, a change of use will not be liable for CIL unless additional floor-space of over 100 square metres is created.
The meaning of 'The day planning permission first permits development’
In most cases, this will be the day that planning permission is granted. However, where there is a Charging Schedule in force at that time that an outline planning permission is granted, and then this will usually be the date of final approval of reserved matters, or approval of reserved matters for each phase in cases where phased development has been permitted.
Barn conversions to residential use
A change of use from a barn to residential would not be liable for CIL if i) the barn had been in lawful use for a period of 6 months over the past three years before planning permission is granted and ii) the change of use would not result in an increase in size. If the barn had been in lawful use but also resulted in an extension, then only the increased floorspace would be liable for CIL. The same would apply to offices or other prior uses.
CIL can only be charged on buildings. Planning law dictates that mobile homes are not normally buildings therefore no CIL will be charged on them.
Building an extension to a supermarket of 110sqm
You would have to pay CIL on the whole 110sqm. The 100sqm exemption does not work as a discount. Therefore, as soon as the threshold is met the whole extension becomes chargeable.
Outline planning permissions that are granted from the date the CIL Charging Schedule comes into effect will be liable to pay CIL. However, as the liability is calculated at reserved matters stage there is no need to submit any CIL forms with the outline application. If an outline application includes phasing of development, each phase is treated as a separate development for the purpose of paying CIL. The CIL liability for each phase is then calculated at reserved matters stage for that phase.
Developments that do not require planning permission
Development commenced under ‘general consent’ may be liable to pay CIL. If you intend to develop under ‘general consent’ you must complete a ‘Notice of Chargeable Development’ The standard criteria for determining whether you will pay CIL will then apply.
Specific questions about liability
Will a development be liable to pay CIL if there was a resolution to grant planning permission (e.g. subject to a S.106 agreement or call-in) before publication of a CIL Charging Schedule, but the formal grant of planning permission is made after the CIL Charging Schedule comes into effect?
Yes. If the formal grant of permission was made after the CIL Charging Schedule comes into effect, it would be liable to pay CIL.
Will a development be liable to pay CIL if there was a planning permission before the CIL Charging Schedule came into effect, but an approval of a Section 73 application to vary or remove conditions of that planning permission is made after the CIL Charging Schedule came into effect?
Yes, but only if the grant of the Section 73 application results in an increase in floor space.