In Layman's Terms | Community Infrastructure Levy (CIL)

CIL (Community Infrastructure Levy) is a development tax set by local councils to help fund essential infrastructure such as roads, schools, and open space. If you’re applying for permission for new homes, retail, or certain other developments, there’s a good chance that CIL will feature in your project’s costs.

Community Infrastructure Levy (CIL) is a development tax set by local councils to help fund infrastructure roads, schools, open space. If you’re seeking permission for new homes, retail, or certain other uses, there’s a good chance CIL will feature in your project’s costs. From a planner’s perspective, here’s a breakdown of the key points.

When does CIL apply?

Each charging authority has their own Charging Schedule with rates by use and sometimes by zone. To note, Councils across the country have adopted these at different rates, so you could still be in an area that has yet to adopt CIL.

There are two scenarios where CIL is liable:

Creation of a new residential unit Creation of net additional floorspace over 100sqm. If your proposal falls into these two categories, it’s potentially liable. Some development is not CIL liable (e.g., very small changes, certain uses, or authorities that haven’t adopted CIL).

If your development is for a change of use or demolition/re-build, then you may be able to ‘off-set’ the existing floorspace from the CIL liability, which can drastically reduce or eliminate the charge. This will require submitting evidence of the use to the Charging Authority.

Lastly, there are exemptions such as for Self-Build/Custom dwellings, residential annexes/extensions or charitable institutions. Again, these all require evidence to be submitted to the Charging Authority.

If you have received a Liability Notice or require a CIL strategy prior to the submission of your planning application, we can assess your situation and how we can reduce or potentially eliminate liability.

Who pays and when?

The party that assumes liability (by submitting the form) becomes responsible. After permission is granted and you’ve served a Commencement Notice, the council issues a Liability Notice setting out what’s due and the instalments (if any). Miss the paperwork and you can lose reliefs, trigger surcharges, and be forced onto immediate payment terms through a Demand Notice.

How is it calculated?

At its simplest: Charge = Rate × Chargeable Area × Indexation.

Rate: £/m² from the Charging Schedule. Chargeable Area (A): the net CIL-liable GIA. For change-of-use/conversions, you can deduct eligible existing floorspace “in lawful use” (occupied for at least 6 months in the 3 years before permission first permits development). Indexation: an annual index published nationally; councils apply a ratio to update the adopted rates to the year of your permission. Reviews and appeals (That figure doesn’t look right…)

If you receive a Liability Notice and wish to challenge the chargeable amount, you can request a Regulation 113 review within 28 days of the Liability Notice.

The CIL team must then reconsider the arithmetic (rates, indexation, net area). No luck? You can appeal the chargeable amount to the Planning Inspectorate under Regulation 114 (within 60 days of the original Liability Notice). Separate routes exist for appealing a Demand Notice, for surcharges (Regulation 117) and deemed commencement (Regulation 118).

If you require assistance with forms, CIL strategy or appealing a Liability or Demand Notice, our experienced team at ET Planning can guide you through this intimidating process.

Get in touch with us today on 01344 508048 or email office@etplanning.co.uk .