CIL payment, relief, appeals and expenditure
How much to pay
CIL is calculated by multiplying the new floorspace by the CIL rates in the Council’s Charging Schedule. If the CIL rate is nil, and/or the net increase is less than 100sqm, then no CIL will be payable. If the application is for a new dwelling in an area where CIL is chargeable, then CIL will be payable even if the new floorspace is less than 100sqm.
Deductions can be made for demolitions and changes of use, according to certain criteria. Exemptions may also be granted. However, exemptions are not automatically calculated and need to be applied for after the Liability Notice has been issued. See the section on Relief below.
Furthermore, CIL charges are index-linked according to the national All-In Tender Price Index published by the RICS Building Cost Information Service.
The full formula for calculating CIL is contained in the CIL Regulations 2010 (as amended). Planning Officers can offer advice on the calculation.
The council is entitled to ask for relevant information when the planning application is submitted. The Council will send a formal liability calculation in the form of a Liability Notice once planning permission is granted.
When to pay and instalments
CIL is due within 60 days of commencement of development. However, the council allows payments by instalments in line with it’s adopted instalments policy.
Commencement of development
CIL liable parties are required to send a Commencement Notice to the council when they have commenced development. ‘Commencement’ occurs when any material operation is carried out on the site.
Changes to commencement dates
You need to tell the council of any change. The council will issue a Demand Notice based on your commencement date, so if this changes, you need to let us know. Simply re-submit a new commencement notice with the new date provided. We will acknowledge the date on the latest commencement notice.
CIL payments can be phased where the planning permission specifies that the development will be phased. In this case, each phase will be treated as a separate CIL chargeable development and payment will be due on the commencement of development of each phase.
Relief from CIL
In accordance with the Regulations the following development may receive relief from CIL:
- Charitable development,
- Social housing development,
- Self-build development,
- Self-build residential annex or extension.
- Exceptional circumstances in line with regulation 55
However, relief is not automatically granted, and needs to be applied for after the Liability Notice has been issued.
Affordable housing and relief
Developments for affordable housing are eligible for relief from CIL providing that they are let by a private registered provider of social housing, a registered social landlord, a local authority or the dwelling is occupied in accordance with shared ownership arrangements.
To qualify for affordable housing relief, the claimant must have a material interest in the area granted planning permission and have assumed liability to pay the levy for the whole chargeable development. To receive affordable housing relief, as above, you must submit a ‘CIL Claiming Exemption or Relief’ form to the Council prior to commencement of the development. A claim for relief will be invalid if the chargeable development is commenced before the Council has notified the claimant of its decision on the claim.
Affordable housing relief can be claimed for communal areas. The CIL Regulations (as amended) provide relief for communal areas that are associated with social housing developments.
Demolitions and/or existing buildings
The gross internal floorspace of any existing buildings on site that are going to be demolished or reused may be deducted from the calculation of CIL liability, providing that the building has been in continuous lawful use for at least six months over the past three years ending on the day the planning permission first permits development.
Appeals and enforcement
Non-payment of CIL charges
CIL is a mandatory and non-negotiable planning charge and there are penalties and surcharges for non-payment, including the option to pay by instalment being automatically withdrawn. There are also strong enforcement powers, including Stop Notices, surcharges and prison terms.
Appeal against your decision on the chargeable amount
You can appeal against the council’s decision in relation to your CIL liability, but please note that appeals must be made within 60 days of the Liability Notice being issued, and appeals can only be made after you have formally asked us to recalculate the CIL amount (which must be done within 28 days).
You can also appeal against the apportionment of liability, charitable relief, self-build exemptions, surcharges, commencement of development and a Stop Notice. There is further information and the relevant forms on the Gov.uk website.
Is CIL a land charge?
It is a legally enforceable levy which is shown as a land charge on the local land charges register.
Expenditure of CIL
CIL and S106 contributions
CIL does not replace Section 106 completely. S.106 will continue to be used to deliver site specific infrastructure and for providing affordable housing.
Developments will not be charged for the same items of infrastructure through both S.106 obligations and CIL.
Spending CIL monies
A list of the infrastructure types and projects that the Council intends to be wholly, or partly, funded by CIL is available in the CIL Reg 123 list.The list will be updated in March 2018 and then at least annually thereafter.
We will prepare annual monitoring reports to provide details of how much CIL has been received, what it has been spent on and how much is left in reserve. This report will be produced on an annual basis by 31st December for the previous financial.
CIL collection process
Part 8 of the Community Infrastructure Levy Regulations, as amended, sets the legal framework for calculating and collecting the levy.
The collection process steps are:
- in areas where the levy is in force, applicants for planning permission should include a completed copy of the Additional CIL Information form with their application – this will help the collecting authority to calculate the amount payable
- where planning permission is granted for development by way of a general consent – such as via the General Permitted Development Order or through a Local Development Order, the developer or landowner submits a notice of chargeable development to the collecting authority (unless the development is less than 100 square metres, or the levy rate for the development is £zero per square metre)
- where planning permission is necessary, or permission is granted for development by way of a general consent, the collecting authority will expect the developer, landowner or another interested party to assume liability for the levy by submitting an assumption of liability form. It may speed up the process of issuing a liability notice if this form is submitted before planning permission is granted
- the collecting authority then issues a liability notice to the applicant, the developer, and whoever has assumed liability for the scheme, which sets out the charge due and details of the payment procedure
- the relevant person(s) then submit a notice to the collecting authority setting out when development is going to start – a commencement notice
- the collecting authority issues a demand notice to the landowner, or whoever has assumed liability, setting out the payment due dates in line with the payment procedure
- on commencement of the development, the landowner, or whoever has assumed liability, should follow the payment procedure set out on the demand notice.
- the collecting authority must issue a receipt for each payment received, and transfer the funds to the charging authority (if that is a different body).
Anyone wishing to claim relief or an exemption from the levy should make sure that they submit their claim in good time. Most forms of relief or exemption must be claimed and approved prior to the commencement of development.