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TRANSCRIPT
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Waveney District Council
Community Infrastructure Levy
Raising funds for
infrastructure delivery:
Developer’s Guide to the Collection
of CIL
March 2014
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Contents
Background .......................................................................................................... 3
Introduction........................................................................................................................... 3
What Development is Liable for CIL? .................................................................................... 3
When does CIL become Liable?............................................................................................. 4
How is CIL calculated? ........................................................................................................... 4
Social Housing........................................................................................................................ 9
Self Build and Residential Extensions and Annexes ............................................................ 10
The Collection Process .........................................................................................11
Step 1 – Submission of Full Planning Application or Reserved Matters Planning Application
............................................................................................................................................. 11
Step 2 – Assumption of Liability .......................................................................................... 11
Step 3 – Issuing of Liability Notice....................................................................................... 12
Step 4 – Social Housing Relief and other exemptions......................................................... 12
Step 5 – Commencement Notice......................................................................................... 13
Step 6 – Demand Notice...................................................................................................... 14
Step 7 – Payment................................................................................................................. 14
Step 8 – Completion – Self Build housing only.................................................................... 14
Permitted Development...................................................................................................... 14
Reviews and Appeals........................................................................................................... 15
Enforcement........................................................................................................................ 17
FAQs....................................................................................................................18
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Background
Introduction
The Community Infrastructure Levy (CIL) is a new standard charge which local authorities in
England and Wales can charge on most types of new development in their area. CIL charges
will be based on the size, type and location of the development proposed. The money raised
will be used to pay for infrastructure required to support development in a district. The CIL
will largely replace the existing system of Section 106 Planning Obligations for the provision
of infrastructure.
CIL takes the form of rates set in pounds (£) per square metre of new floorspace (measured
as gross internal area). CIL rates differ by both location and development type are set out in
a formal document called the Charging Schedule.
Waveney District Council introduced CIL on the 1st August 2013. Any planning applications
for full or reserved matters planning permission determined since this date may be liable for
CIL. Reserved matter applications that relate to an outline granted prior to the 1st August
are not liable.
This guide sets out information on CIL in terms of how it is applied, calculated, collected and
enforced. It is recommended that this guide is also read in conjunction with the Council‘s CIL
webpage, www.waveney.gov.uk/cil , which contains up to date information and links,
including all the administration forms that need to be submitted to the Council at various
stages of the CIL collection process.
What Development is Liable for CIL?
CIL is potentially chargeable on all development that involves buildings that people normally
go into. However, the Council’s Charging Schedule sets a zero rate of CIL for most types of
development. Therefore the only types of development that will be liable to pay CIL in
Waveney are:
• Residential developments (use class C3 and C4) – including extensions of 100sqm or
more to existing residential properties.
• Developments of supermarkets/superstores over 100sqm - including extensions of
100sqm or more to existing supermarkets/superstores.
• Developments of retail warehouses over 100sqm – including extensions of 100sqm
or more to existing retail warehouses
• Developments of buildings to be used as holiday lets - including extensions of
100sqm or more to existing buildings used as holiday lets.
The rates of CIL in Waveney differ by development type. For residential development the
rates of CIL also differ by location. The rates of CIL for Waveney are set out in the Charging
Schedule which can be read on the Council’s website, www.waveney.gov.uk/CIL and at the
Council’s offices and local libraries.
In some rare cases development that is permitted by a general order such as the General
Permitted Development Order may be liable for CIL.
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When does CIL become Liable?
CIL is calculated at the time planning permission is granted for full plans or reserved matters.
For reserved matters applications related to outline permissions, CIL will be calculated on
the day the approval of the final reserved matters associated with that phase is given
consent.
The CIL Regulations allow for phased developments. Where a full planning permission is
granted that allows a phased development, each phase is treated as a separate chargeable
development. For these developments, CIL is calculated on the date the pre-commencement
condition associated with relevant phase is approved.
CIL becomes liable to pay on the commencement of development and in accordance with
the Council’s CIL Instalment Policy which can be read at www.waveney.gov.uk/CIL.
How is CIL calculated?
For developments where there are no existing buildings on the site in the calculation is
reasonably simple.
CIL Rate x Chargeable Floor Area (gross internal area) x BCIS All-in Tender Price Index (at
Date of Planning Permission)
BCIS All-in Tender Price Index (at Date of Charging Schedule)
The calculation is a little bit more complex where there are existing buildings on the site that
form part of the chargeable development. This is because the gross internal area of the
development is discounted by the amount of current floorspace in use on the site that is to
be replaced. Therefore a secondary equation is needed to work out the chargeable floor
area. This equation is as follows:
G
EGrKrGr
)( ×−−
Where:
G = gross internal area of the chargeable development
Gr = the gross internal area of the part of the development chargeable at the relevant CIL
rate
Kr = the gross internal areas of all buildings on completion of the chargeable development
which are in-use on the day planning permission is granted and will be part of the
chargeable development and chargeable at the relevant CIL rate. Kr also includes any
building which is not in-use and part of the chargeable development, where the intended
use following completion of the development, is a use that would not require further
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planning permission on the day before planning permission first permits the chargeable
development.
E = the gross internal area of all buildings, which on the day planning permission is granted
are situated on the land (within the red line or the phase to which the development relates)
and are in-use and are to be demolished before completion of the chargeable development.
Or for phased developments, the value of the above plus Ex. Ex allows for any credit from
demolitions on previous phases to be applied to the new phase. Ex is calculated from the
following equation:
)( KprGpEp −−
Ep = the value of E for the previously commenced phase of the planning permission.
Gp = the value of G for the previously commenced phase of the planning permission.
Kpr = the total of the values of Kr for the previously commenced phase of the planning
permission.
It should be noted that in-use means that the building has been in actual use for a period of
at least 6 months in three years up to the day planning permission is granted.
Considering the above, it is important that if a developer wishes to benefit from the
discount provided for the replacement of existing buildings, that these buildings are kept
in place until planning permission for full plans or reserved matters is granted for the
chargeable development. Additionally it is important that the buildings are kept in use.
The Council cannot apply the discount if the buildings have already been demolished or
have not been in use. The Council will expect to see evidence that existing buildings on the
site have been in actual use for this period.
Worked example 1:
A planning permission permits the development of 6 new build houses. The development
involves the demolition of an existing house on the site which is in use. The 6 new build
houses are all 100sqm each in size. The house to be demolished is also 100sqm in size. The
rate of CIL is £60 per sqm. The development is permitted in the first year of the Charging
Schedule so the index calculation does not apply.
Firstly to work out the chargeable area it is necessary to use the formula below.
G
EGrKrGr
)( ×−−
Where
G = 600sqm – the gross internal area of the development
Gr = 600sqm – the gross internal area of the development chargeable at the residential rate.
For this example, this figure is the same as the above as there is only one chargeable use on
the site.
E = 100sqm – the gross internal area of the house to be demolished
Kr = 0sqm – no existing buildings are being reused as part of the development so this is zero.
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sqmsqmsqm 500600
)100600(0600 =
×−−
The rate of CIL at £60 per sqm can then be simply multiplied by the chargeable floor area of
500sqm giving a total CIL liability of £30,000
Worked example 2:
A planning permission permits the development of 1 new build house and changes the use
of a barn that is in use to a house. The new build house is 100sqm and the barn is also
100sqm. The rate of CIL is £60 per sqm. The development is permitted in the first year of the
Charging Schedule so the index calculation does not apply.
Firstly to work out the chargeable area it is necessary to use the formula below.
G = 200sqm
Gr = 200sqm
E = 0sqm
Kr = 100sqm – the barn of 100sqm is being reused as part of the development.
G
EGrKrGr
)( ×−−
sqmsqm
sqmsqmsqmsqm 100
200
)0200(100200 =
×−−
The rate of CIL at £60 per sqm can then be multiplied by chargeable floor area of 100sqm
giving a total CIL liability of £6,000. Had the barn not been in use then the liability would
have been £12,000.
Worked example 3:
A phased planning permission permits the development of 100 new build homes split across
two equal phases (50 each). On phase 1 there is a large factory building that is to be
demolished as part of the development. The factory was in use two years ago for a period of
longer than six months. The factory building is 7500sqm. The new build homes are all
100sqm. The rate of CIL is £60 per sqm. Both phases of the development are permitted in
the first year of the Charging Schedule so the index calculation does not apply.
Firstly to work out the chargeable area for phase 1 it is necessary to use the formula below.
G = 5000sqm
Gr = 5000sqm
E = 7500sqm
Kr = 0sqm
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G
EGrKrGr
)( ×−−
sqmsqm
sqmsqmsqmsqm 2500
5000
)75005000(05000 −=
×−−
It is not possible to have a negative rate of CIL so the liability for phase 1 is £0.
For phase 2 we have to use the same equation again as it is a separate chargeable
development. However, this time the figure for E will be different.
G = 5000sqm
Gr = 5000sqm
Kr = 0sqm
E = E+Ex
There are no buildings on phase 2. However, there were buildings demolished on phase 1.
Therefore the value Ex becomes relevant.
)( KprGpEpEx −−=
Ep = 7500 – this is the area of the factory demolished as part of phase 1.
Gp = 5000 – this is the gross internal area of the development from phase 1.
Kpr = 0 – this would be the gross internal area of any buildings re-used as part of the
development that meet the definition of Kr in the regulations.
)05000(7500 sqmsqmsqmEx −−=
Therefore E = 2500.
Therefore the chargeable area for phase 2 is:
sqmsqm
sqmsqmsqmsqm 2500
5000
)25005000(05000 =
×−−
The rate of CIL at £60 per sqm can then be multiplied by chargeable floor area of 2500sqm
giving a total CIL liability of £150,000.
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The following table gives further examples of the calculation of chargeable floor area.
Current site Proposed
Development
Chargeable area
Cleared building site 90 sq m new
residential dwelling
90 sq m
Single dwelling – 25 sq m extension Not liable as under 100 sq m new build and
does not create a new dwelling
Single dwelling – 125 sq m extension 125 sq m although an exemption can be
applied for – see below.
Single dwelling – in-
use but to be
demolished
125 sq m new
development
90 sq m original
dwelling
demolished
35 sq m
NB: not exempt as development comprises of
one or more dwellings but charge reduced due
to original building to be demolished being in
use
Single dwelling –
not in-use and to be
demolished
125 sq m new
development
90 sq m original
dwelling
demolished
125 sq m
NB: not exempt as development comprises of
one or more dwellings and no reduction in
charge as the original building has not been in
use for a period of 6 months in the last 3 years.
Shop unit – not in
use
90 sq m conversion
/change of use of
unit to residential
90 sq m
NB: No exemption even though under 100 sq m
as creating new dwelling. As the unit has not
been in-use, the floorspace is chargeable.
Shop unit – in-use 90 sq m conversion
/change of use of
unit to residential
0 sq m so no charge
NB: No exemption even though under 100 sq m
as creating new dwelling. However, as the unit
has been in use, the floorspace is deductable
and so there is no charge in this scenario.
3500 sq m business
development in-use
but to be
demolished
15000 sq m new
residential
5000 sq m new
business
3500 sq m original
business use
demolished
12375 sqm residential
4125 sqm business but as zero rate no charge
N.B the demolished amount is apportioned
across the whole development e.g. ¾
development residential, ¼ business; therefore,
of the 3500 sqm demolished floorspace, 2625
sqm is deducted from residential floorspace
and 875 sqm from business
A indicative CIL calculator is provided on the Council’s webpage (www.waveney.gov.uk/CIL)
to help calculate likely liability.
What is Gross Internal Area?
Gross internal floorspace is the internal area of the building, and should include rooms,
circulation and service space such as lifts and floorspace devoted to corridors, toilets,
storage, ancillary floorspace (e.g. underground parking) etc. Gross internal floor area
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includes floorspace on all storeys of the building. The generally accepted method of
calculation of GIA is set out in the RICS Code of Measuring Practice.
Social Housing
Social Housing qualifies for 100% relief from CIL. However, it is the liable developer’s
responsibility to claim for this relief. As such the relief, if claimed, is offered as a discount
against the total liability for a scheme based on the amount of floorspace provided that is
used for social housing. Where the development is on a clean site with no existing buildings
in lawful use the calculation for relief is simple.
CIL Rate x Floorspace of social housing x BCIS Tender Price Index (at Date of Planning
Permission)
BCIS Tender Price Index (at Date of Charging Schedule)
The effect of the calculation is that the social housing on site is not charged CIL. The
calculation becomes more complex when there are existing buildings in lawful use on the
site. In these cases the floor area of the social housing liable for relief is calculated by a
similar equation as the one for working out the total liability where there are existing
buildings in lawful use on the site.
×−−
G
EQrKqrQr
G = gross internal area of the chargeable development
Qr = the gross internal area of the social housing on the development
E = has the same definition as the main CIL equation.
Kqr = the gross internal areas of all buildings on completion of the chargeable development
which are in-use on the day of planning permission and will be part of the chargeable
development and chargeable at the relevant CIL rate if it were not for social housing relief.
Or any building which is not in-use and part of the chargeable development, where the
intended use following completion of the development, is a use that would not require
further planning permission on the day before planning permission first permits the
chargeable development, and would be chargeable at the relevant CIL rate if were not for
social housing relief.
Communal areas within social housing developments (for example corridors and entrance
halls) also qualify for relief from CIL. The area that qualifies is calculated using the following
equation.
B
AX ×
10
X = the gross internal area of the communal areas
A = the gross internal areas of the social housing to which the communal area relates
B = the gross internal area of the social housing and any other development to which the
communal area relates.
The definition of Social Housing is set out in Regulation 49 and it covers most types of
affordable housing provided in Waveney including social rented, affordable rent and shared
ownership tenures.
Self Build and Residential Extensions and Annexes
The CIL (Amendment) Regulations 2014 allow exemptions for ‘self build’ residential
extensions and annexes. Where an applicant owns and uses an existing dwelling as their
main or sole residence, any extension (over 100sqm) or new annex will be exempt from CIL.
Annexes have to be wholly within the curtilage of the existing dwelling.
These exemptions are not automatically granted and they have to be applied for using forms
supplied on the Planning Portal (similar to social housing relief).
With respect to annexes, the exemption must be withdrawn if within three years:
� the main dwelling is used for any purpose other than a single dwelling,
� the annex or the main dwelling are sold (unless the they are sold at the same time
to the same person)
The new regulations also introduce an exemption for new ‘self build’ housing. Self build
housing is housing built (or commissioned) by the person who will occupy the housing as
their sole or main residence.
As above, this exemption is not automatically granted it has to be applied for.
Claims for the exemption can only be made by the liable person and similar to all forms of
relief must be made before development commences.
Within 6 months of completion of the self build development the liable person must submit
a form from the Planning Portal including the following evidence:
� Proof of completion (building control compliance/completion certificate)
� Proof of ownership (title and deeds)
� Proof of occupation of the dwelling (Council tax certificate, and two further proofs of
evidence (utility bill, electoral roll, bank statement)
� And one of the following:
o An approved claim for a VAT refund for DIY housebuilders
o A self build warranty
o An approved self build mortgage
If within three years the house is sold, let or no longer used as the main residence the
exemption must be withdrawn.
For both annexes and self build relief, a local land charge is held upon the property for the
three years following completion.
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The Collection Process
All forms mentioned in this section are available to download at the Planning Portals
webpage
(http://www.planningportal.gov.uk/planning/applications/howtoapply/whattosubmit/cil)
and the Council’s CIL webpage www.waveney.gov.uk/cil
Step 1 – Submission of Full Planning Application or Reserved Matters
Planning Application
All full and final reserved matters planning applications for the following types of
development are required to submit an “Additional questions”’ form available on the
Planning Portal webpage:
• Residential development in Zones 2, 3, and 4 as indicated in the Council’s Charging
Schedule (www.waveney.gov.uk/cil).
• Extensions of over 100sqm gross internal area to residential properties.
• Supermarket/superstore development over 100sqm gross internal area.
• Extensions of over 100sqm gross internal area to supermarkets/superstores.
• Developments of buildings to be used as holiday lets
• Extensions of over 100sqm gross internal area to existing buildings used as holiday
lets.
Applications for reserved matters that relate to outline applications granted prior to 1st
August 2013 will not be required to submit the above form as these developments will not
be liable for CIL.
In very rare cases, development that is permitted by a general consent such as the General
Permitted Development Order may be liable for CIL if it falls within the above categories. In
such cases it is the developers responsibility to notify the Council of development taking
place. Developers need to notify the Council using the “Notice of Chargeable Development
Form” on the Planning Portal webpage. See below for more information.
Step 2 – Assumption of Liability
The responsibility to pay CIL runs with the ownership of land on which the liable
development will be situated. However, the CIL Regulations recognise that others involved in
a development may wish to pay. To allow this, anyone can come forward and assume
liability for the payment.
It is the responsibility of the person(s) who will pay CIL to submit an Assumption of Liability
Notice on the Council prior to the commencement of the development. The relevant form to
do this is available on the Planning Portal website. If it is known who will be assuming
liability to pay prior to the grant of planning permission, the Council recommends that the
Assumption of Liability Notice is submitted at the same time as the “Additional Questions”
form referred to above. If on grant of application no one has assumed liability the Council
will send an Assumption of Liability Notice form to the applicant. The applicant can then
assume liability themselves or pass it on to the relevant person.
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The Council will always acknowledge receipt of the Assumption of Liability form. At any time
up until the commencement of development, the assumption of liability may be withdrawn
using the appropriate form available on the Planning Portal website.
Where no one has assumed liability to pay CIL prior to the commencement of the
development, the liability will automatically default to the landowners of the relevant
land.
The Council has adopted an Instalments Policy which allows payment of CIL liabilities over a
longer time period to assist with development cash-flow. Failure by any parties to assume
liability prior to commencement will mean the payments become due immediately upon
commencement of the development and the instalments policy will not apply. In addition
a surcharge of £50 may be imposed upon each landowner found to be liable and where
the Council has to apportion liability between one or more owners of the land a further
surcharge of £500 per owner may be imposed.
Step 3 – Issuing of Liability Notice
Once the Council has received an Assumption of Liability Notice and the final planning
permission has been granted, the Council will issue a Liability Notice to the liable person(s),
the landowner and applicant. The Liability Notice will set out how much CIL the liable
person(s) will have to pay. This notice is not a demand for payment, it is just a notice setting
out the liability to pay should development commence.
Step 4 – Social Housing Relief and other exemptions
If the liable development involves the development of social housing, the liable person(s)
will be eligible for relief with respect to the floorspace used for social housing. Relief for
social housing will not automatically be granted, it must be applied for.
Social housing relief must be applied for by using the appropriate form on the Planning
Portal website. Upon receipt of the form, the Council will assess the claim and as soon as
reasonably practicable advise the liable person(s) of its decision. If relief is to be granted, the
Council will issue a revised liability notice detailing the reduced amount of CIL liable for the
development.
Social housing relief must be applied for and granted prior to the commencement of
development. Social housing relief will also lapse if liability is withdrawn or transferred.
Social housing relief is subject to a clawback. If the social housing on the site that was
granted relief ceases to be social housing within 7 years of the commencement of
development the relief in relation to social housing that is lost will need to be paid back to
the Council. However, clawback will not apply where the proceeds from the sale of social
housing are spent on social housing or are transferred to the Secretary of State, local
housing authority or the HCA or the disposal is made to the Regulator of Social Housing
under section 167 or 253 of the Housing and Regeneration Act 2008. Social housing relief
travels with the land. When land is transferred the relief is transferred as well. The person
liable to pay back the relief granted will be the person who is benefiting from the relief. This
in many cases will be the provider of the social homes.
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Exemptions for residential extensions annexes and self build housing must also be applied
for prior to commencement. These exemptions must be applied for using either the “Self
Build Annex or Extension Claim Form” or the “Self Build Exemption Claim Form: Part 1”on
the Planning Portal webpage depending on the exemption being applied for. Upon receipt of
a form for exemption , the Council will assess the claim and as soon as reasonably
practicable advise the liable person(s) of its decision. If exemption is to be granted, the
Council will issue a revised liability notice detailing the reduced amount of CIL liable for the
development.
For self-build housing there is a further form to fill out following completion together with
the submission of various types of evidence. This is detailed in Step 8 below.
For annexes and self build housing there is a clawback period of three years following
completion if a disqualifying event occurs. For annexes a disqualifying event is:
� The use of the main dwelling for any purpose other than as a single dwelling.
� The letting of the residential annex
� The sale of the main dwelling or residential annex separately.
For self-build housing a disqualifying event is:
� Any change to the housing that means it cannot meet the definition of self-
build housing (e.g. no longer using the dwelling as a sole or main residence.
� Failure to submit required documentation within six months of completion.
� The letting out of the dwelling or communal areas.
� The sale of the dwelling
� The sale of communal areas
Step 5 – Commencement Notice
CIL becomes payable on commencement of development. The CIL Regulations require that a
liable person(s) submits a Commencement Notice to the Council stating the day that they
intend to commence development. The Commencement Notice must be submitted to the
Council at least a day before the development commences. The commencement notice
should be submitted using the appropriate form provided on the Planning Portal website.
When submitting a commencement notice the person submitting it should notify all owners
of the relevant land.
The Council will acknowledge receipt of a Commencement Notice. The Council will state on
this receipt the date on which the clawback period for social housing relief ends.
If a liable person wishes to change the commencement date they can simply submit a
revised Commencement Notice to the Council.
It is critically important that a Commencement Notice is submitted before development
commences. If it comes to the attention of the Council that the development has
commenced and no Commencement Notice is received the Council may issue a surcharge of
20% of the liable amount or £2500 whichever the less. Additionally the CIL Regulations
dictate that where a Commencement Notice has not been received before commencement,
the liable person(s) will no longer be able to benefit from the Instalment Policy and the
development will cease to be eligible for social housing relief or exemptions for self build
housing, extensions or annexes.
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Step 6 – Demand Notice
The Council will serve a Demand Notice to the liable person(s) following receipt of a
Commencement Notice, or a decision by the Council to deem that the development has
commenced.
The Demand Notice will set out precise details of payment arrangements including
instalment options, which will be payable from the date upon which development
commences.
If a valid Commencement Notice has not been submitted before development
commences, payment will be due in full on the day that the Council believes the
development to have commenced.
Step 7 – Payment
The liable person(s) must pay CIL on time and in accordance with the Demand Notice.
Step 8 – Completion – Self Build housing only
Within six months of completion of self-build housing, the liable person must submit the
following evidence to the Council to confirm the building is self build housing. The evidence
should be accompanied by the appropriate form available from the Planning Portal website.
� Proof of completion (building control compliance/completion certificate)
� Proof of ownership (title and deeds)
� Proof of occupation of the dwelling (Council tax certificate, and two further proofs of
evidence (utility bill, electoral roll, bank statement)
� And one of the following:
o An approved claim for a VAT refund for DIY housebuilders
o A self build warranty
o An approved self build mortgage
Permitted Development
In some very rare case permitted development by the General Permitted Development
Order may be liable to pay CIL. In these cases the process described above is slightly
different.
It is a developers responsibility to let the Council know if their development which is
permitted under the General Permitted Development Order is liable for CIL. However, in
most cases the types of permitted development that will be liable for CIL will also require
prior approval. This enables the Council to inform the developer that their development may
be liable for CIL.
Where a developer considers that their development is permitted development and it may
be liable for a CIL charge, they must send the Council a “Notice of Chargeable Development”
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prior to commencement. The notice should be submitted using the appropriate form
provided on the Planning Portal website. The notice must be accompanied by a plan which
identifies:
• the land on which the development will take place,
• any buildings in use on that land which are to be demolished before the completion
of the chargeable development,
• any buildings in use on that land which will be reused as part of the development
(i.e. change of use) on completion, and
• the development which is the subject of the notice.
The “Notice of Chargeable Development” form can also be used to assume liability. If liability
is not assumed using the form it must be done separately according to the process above
before commencement of development.
On receipt of the form the Council will acknowledge receipt and let the person know if they
agree or not that the development is chargeable or not. From this point the above process
from Step 2 onwards.
If the Council does not receive a “Notice of Chargeable Development” and it is aware a
chargeable development has started the Council will prepare the notice and serve it on the
owners of the land. A surcharge may be imposed in these instances of 20% of the liability or
£2,500 (whichever is the less).
Reviews and Appeals
Once a Charging Schedule is adopted, the rate of the levy is non-negotiable and the Council
is not required to justify its application on a case-by-case basis. Appeals under the CIL
Regulations are overwhelmingly about matters of fact (e.g. did the Council make a mistake in
calculating the liability)
Review of Chargeable Amount
It is possible to request a review of the calculation of the chargeable amount as it appears in
the Liability Notice if the liable person(s) believes there is an error in the calculation.
A request for a review must be made to the Council in writing within 28 days of the Liability
Notice being received. Any such request may be accompanied by representations in
connection with the review that explain why it is believed the calculation was wrong.
A senior officer of the Council who had no part in making the original calculation will review
the calculation within 14 days and inform the appellant of their decision and the reasons for
it.
If an error is found in the calculation a revised Liability Notice will be issued.
It is important to note that a request for a review of the chargeable amount cannot be made
after development commences.
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Appeal of Chargeable Amount
If a liable person(s) is aggrieved by the decision of the Council following a review of the
chargeable amount, the liable person(s) may appeal to the Valuation Office Agency (see
http://www.voa.gov.uk/cil/index.html). An appeal may also be made to the Valuation Office
Agency if the Council has failed to provide a response to a request for a review within the 14
day limit.
An appeal to the Valuation Office Agency must be made with 60 days of the Liability Notice
being received.
It is important to note that a request for an appeal of the chargeable amount cannot be
made after development commences. Any appeal will lapse if development is commenced
prior to the Valuation Office Agency issuing their decision.
Residential Annex and Self-Build Exemption Appeals
An appeal can be made directly to the Valuation Office Agency if a liable person considers
that the Council has incorrectly determined that an annex is not wholly within the curtilage
of the main dwelling. Such an appeal must be made within 28 days of the Council’s decision
on the claim for exemption. An appeal cannot be made if development has commenced.
An appeal can be made directly to the Valuation Office Agency if a liable person considers
that the Council has incorrectly determined the value of the exemption allowed for self-build
housing. Such an appeal must be made within 28 days of the Council’s decision on the claim
for exemption. An appeal cannot be made if development has commenced.
Other Appeals
There are a number of other less-likely circumstances where appeals can be made in the CIL
process these are as follows:
• If an owner of a material interest in land disagrees with how the Council has
apportioned liability to those who are liable to pay the charge, then that person may
appeal. The appeal must be made within 28 days. This appeal must be made to the
Valuation Office Agency.
• A relevant person can appeal any of the surcharges that the Council may impose if
procedures and payment deadlines aren’t followed. It can be appealed on the basis
that it was calculated incorrectly, that a liability notice was not served or if the
breach simply did not occur. The appeal must be made within 28 days. This appeal
must be made to the Planning Inspectorate.
• A liable person can appeal a deemed commencement date if it is considered that the
date has been determined incorrectly. An appeal must be made within 28 days. This
appeal must be made to the Planning Inspectorate.
• A relevant person can appeal against a stop notice. They can do so if a warning
notice was not issued or the development has not yet commenced. An appeal must
be made within 60 days. This appeal must be made to the Planning Inspectorate.
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Enforcement
Where payment procedures are not followed the CIL Regulations include a number of
provisions that enable the Council to apply surcharges as well as ensure the effective
enforcement to recover CIL once there is delay or problems within the collection process.
The penalties and enforcement powers can be severe so it is strongly recommended that all
procedures are strictly adhered to and payment is made on time. Some of these penalties
are identified above in the collection process. The section below details with the
enforcement measures where payment is not made on time or not at all.
Late payment interest
Failure to pay CIL on time will result in the imposition of late payment interest at 2.5% above
the Bank of England base rate. A late payment also results in the development no longer
being eligible for payment by instalments. In this situation the entire CIL amount will be
payable immediately.
Late payment surcharge
Continued failure to pay CIL may result in the Council imposing one or more late payment
surcharges. Such surcharges will be imposed in the following manner:
• Five per cent of the outstanding amount where payment is still overdue after 30
days, subject to a £200 minimum
• Further five per cent of the outstanding amount where payment is still overdue after
six months, subject to a £200 minimum
• Further five per cent of the outstanding amount where payment is still overdue after
12 months, subject to a £200 minimum
The CIL stop notice
If the Council considers that interest and late payment surcharges will be ineffective in
securing payment of the overdue CIL, it may decide to serve a CIL stop notice on the
development in question. A CIL stop notice prohibits development from continuing until
payment is made. Continuing to develop in the presence of such a notice is a criminal
offence, punishable by potentially unlimited fines.
Before serving a CIL stop notice however, the Council will first issue a warning to the person
liable to pay the amount, the landowners, occupiers and all those who the Council consider
will be affected by the notice. It will also post a warning on the site itself. This warning will
state that continued non-payment may result in a CIL stop notice being issued. It will also set
out the amount overdue and the number of days after which a CIL stop notice may be
served if payment continues not to be made. If payment is not made by the end of this
period, the Council may serve a stop notice which will prohibit development with immediate
effect immediately until payment of the outstanding amount is made.
Distraint on goods (asset seizure)
The Council may seek a court’s consent to seize and sell assets to recover the money due.
These assets may include any land held by the liable person(s). The Council must send the
liable person(s) notice of its intention to do so beforehand.
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Committal to prison
Where a liable person(s) continues to evade paying CIL, the Council can ask a magistrates’
court to commit the relevant person(s) to prison for no more than three months. To do this,
the Council must be able to demonstrate to the court that it has been unable to recover the
CIL amount due by seizing and selling assets and land.
FAQs
Will a development be liable to pay CIL if planning permission is granted before the CIL
Charging Schedule comes into effect ?
No. Only planning applications granted permission after 1st
August 2013 will be liable to pay
CIL. A reserved matter application relating to an outline planning permission that was
granted prior to the CIL Charging Schedule coming into effect will also not be liable.
Will a development be liable to pay CIL if there was a resolution to grant planning
permission (e.g. subject to a S106 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. This is because any resolution to grant planning
permission by the Committee does not formally grant planning permission as a decision
notice cannot be issued until, for example, a S106 agreement has been signed, where
required.
In the situation where the Committee has made a resolution to grant planning permission
subject to a section 106 that provided infrastructure, it is likely the application will have to
go back to Committee as the section 106 may no longer be justified following the
introduction of 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. If full planning permission is granted before publication of a CIL Charging Schedule, but
an approval of a S73 application to vary or remove conditions is made after publication of
the CIL Charging Schedule, the approval does trigger a liability to pay CIL because it results in
a new planning permission.
However, although a new CIL liability is triggered, the new additional chargeable amount is
equal only to the net increase in the chargeable amount arising from the original planning
permission, so as to avoid double counting of liability. In effect, if the application to vary a
condition does not result in an increase in floorspace then there will be no charge.
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Will a development be liable to pay CIL if there was a planning permission before the CIL
Charging Schedule came into effect, but an application (under Article 18 of the
Development Management Procedure Order) to extend the life of that planning
permission is made after the CIL Charging Schedule came into effect?
No. Provided the extension of time application meets the requirements of Article 18 of the
Development Management Procedure Order (e.g. the original permission to be extended
was originally granted prior to October 2010).
An application to extend a permission that dates after October 2010 would essentially be a
new permission and therefore liable for CIL.
Are outline applications liable for the levy (CIL)? Outline planning permissions granted after
the date the CIL Charging Schedule comes into effect, will be liable to pay CIL when the
development is built, but 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. As above, the CIL liability for each
phase is calculated at reserved matters stage for that phase.
If a development consists of 100% social housing will it still be liable for CIL and will the
necessary procedures have to be followed.
Yes. Social housing is residential development so it is liable to pay CIL. However, it is eligible
for 100% relief from CIL, providing the social housing remains as social housing for a period
of seven years from commencement. As such there is potential a CIL charge may be required
if the social housing ceases to be social housing within seven years. Therefore, the whole CIL
collection procedure will need to be followed. As no charge will be liable in the first instance,
no demand notice will be sent out by the Council. If the development becomes liable within
the 7 years a revised liability notice and demand notice will then be sent.
Is change of use liable for CIL?
Potentially. If a building has not been in lawful use for a period of at least 6 months in the 3
years running up to the day planning permission is granted for conversion of the building
into residential use (or holiday let), the development will be liable for CIL. A proposal for the
conversions of an unused, redundant barn to a dwelling could therefore be liable for CIL. A
change of use from a building not in lawful use to a supermarket or a retail warehouse could
also be liable for CIL, but only if there is additional new build of over 100sqm.
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Is CIL chargeable on a sub-division of an existing residential dwelling into two dwellings?
No, the regulations make clear that the sub-division of a single dwelling into two or more
separate dwellings is not liable for CIL.
Is CIL chargeable on mobile homes?
No. 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.
Is CIL chargeable on second homes?
Yes, providing they are permanent buildings. Second homes are still dwellings that come
under use class C3 and their use is not normally restricted through planning conditions.
Therefore, the development of second homes will pay the relevant residential rate.
I am building an extension to a supermarket of 110sqm. Do I have to pay CIL on the whole
110sqm or just the 10sqm that falls over the 100sqm threshold?
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 breached the whole extension becomes
chargeable.