The copy about consultation on the reform of CIL runs to many column inches, but sometimes it’s worth going back to basics to ensure that you understand the system and your obligations. Chloe Karamian, Partner in our Planning team takes a quick look at the fundamentals.
1. What is CIL?
The Community Infrastructure Levy - a financial levy payable to the local planning authority on the creation of new floorspace greater than 100m2. CIL is charged by m2 for different use classes and can be linked to different parts of an authority’s area. It is separate to section 106 contributions.
2. What is it for?
The purpose of CIL is for local planning authorities to deliver infrastructure in their area. That infrastructure should be listed in a “Regulation 123 List” which is adopted and published by a local planning authority.
The Mayor of London also has a separate additional CIL for developments in London, for which funds go towards Crossrail.
3. Why would I need to be aware of it?
In undertaking development, it may be an additional development cost. CIL liability can be assumed by any person but payment can ultimately be sought from owners of the site. In selling or purchasing a site with the benefit of planning permission, CIL liability certainly needs to be considered.
4. When is it required?
In basic terms, CIL is payable where there is a CIL Charging Schedule for that type of development in force at the time that the planning permission is granted (or permitted development occurs), where the new floorspace is over 100m2 and there is no offset of “existing in use” floorspace or applicable exemptions.
CIL is payable on the commencement of development and the onus is on the developer to notify the local planning authority and pay.
5. How should I deal with it?
Take care in dealing with CIL. There are a number of formal CIL forms which may need to be submitted and it is a criminal offence to knowingly or recklessly mislead on these forms. Any incorrect information can result in an incorrect CIL charge or surcharges being applied. Extra care needs to be taken in particular when applying for large schemes (to avoid all of the CIL charge being paid right at the start of the development), retrospective applications, and s73 variations.
If you’re looking for advice on CIL or anything to do with planning, contact Chloe Karamian, Partner; our multi-disciplinary team of planning lawyers and chartered own planners delivers on of the leading planning and environmental services in the South.