Why should you know about the Community Infrastructure Levy (CIL)?

Why should you know about the Community Infrastructure Levy (CIL)?

The Community Infrastructure Levy (CIL) was introduced in 2008 so that the local authorities of England and Wales could support the delivery of community infrastructures such as schools and roads by making a charge against development.

What type of development is liable?

If a development creates a net additional floor space, where the gross internal area of a new build is 100 square metres or more. CIL is not applicable to developments permitted under ‘general consent’ including permitted development rights. Developments which involve a change of use, conversion, subdivision or creation of mezzanine floors which has been in lawful use for at least 6 months prior to being permitted is also not applicable for CIL due to no additional new build floor space being created.

What type of development does not pay the levy?

A few examples:

  • Developments of less than 100 square metres
  • Houses, flats, residential annexes and residential extensions which are built by ‘self-builders’ where an exemption has been applied for and obtained
  • Social housing that meets the relief criteria set out in regulation 49 or 49A
  • Vacant buildings brought back into the same use

What does the CIL require of me?

Typically once planning permission has been granted, the authority will issue the applicant with a levy liability notice, Applicants should then assume liability to pay the levy charge prior to the commencement of development by sending a completed assumption of liability form (Form 1: Assumption of Liability)

Are all CIL levy’s the same across authorities?

No, charging authorities (the authorities which apply the CIL) have flexibility in setting rates, which can vary according to type and scale of development, as well as by geographical area. Consequently, there is a wide spectrum of rate-setting approaches ranging from a single residential rate to an authority with seven geographical zones and four land use specific rates. I

The average CIL contribution across all LPA’s is £95 per square metre with the lowest being £50 and £400+ in some instances within London.

For concise summaries and links to relevant forms see:

https://www.planningportal.co.uk/info/200126/applications/70/community_infrastructure_levy

For an in depth breakdown of what the Community Infrastructure Levy is see:

https://www.gov.uk/guidance/community-infrastructure-levy