The Community Infrastructure Levy is a planning charge, introduced by the Planning Act 2008 as a tool for local authorities in England and Wales to help deliver infrastructure to support the development of their area. It came into force on 6 April 2010 through the Community Infrastructure Levy Regulations 2010. Development may be liable for a charge under the Community Infrastructure Levy (CIL), if your local planning authority has chosen to set a charge in its area.
Most new development which creates net additional floor space of 100 square metres or more, or creates a new dwelling, is potentially liable for the levy.
Some developments may be eligible for relief or exemption from the Community Infrastructure Levy. Please note that strict requirements apply with regard to the timing of the exemption process and you should refer to the guidance highlighted below for details. In most cases a Commencement Notice (form 6) must also be served prior to the commencement of development, in order for the exemption to apply.
Detailed CIL guidance is available on the Planning Practice Guidance website.
The introduction of the levy means that charging authorities require additional information to determine whether a charge is due and to determine the amount.
Applicants will therefore be required to answer additional questions to enable authorities to calculate levy liability. These questions are found in the document below, which should be submitted to your local planning authority alongside the planning application form.
Once planning permission is granted, collecting authorities will issue applicants with a levy liability notice. Applicants should then assume liability to pay the levy charge prior to commencement of development by sending a completed assumption of liability form (‘Form 1: Assumption of Liability’) to the collecting authority.
A liable party who subsequently wishes to withdraw or transfer their liability must complete either ‘Form 3: Withdrawal of Assumption of Liability’ or ‘Form 4: Transfer of Liability’ and send this to the collecting authority.
The levy charge becomes due when development commences. A commencement notice must be issued to the collecting authority (Form 6: Commencement Notice’) and all owners of the relevant land to notify them of the intended commencement date of the development. The collecting authority will then send a Demand Notice to the person or persons who have assumed liability.
Development commenced under general consent is liable to pay CIL. 'General consent' includes permitted development rights granted under the General Permitted Development Order 1995. If you intend to commence development under general consent you must submit a Notice of Chargeable Development (Form 5) to the local planning authority before you commence this development. The only exception to this requirement to submit a Notice of Chargeable Development is if the development in question is less than 100 square metres of net additional floorspace. If the development meets this requirement a Notice of Chargeable Development does not have to be submitted before the commencement of development.
Depending on the circumstances, the following forms of relief may be available:
If you think you might qualify for relief, you should speak to the local planning authority as soon as possible. You should also seek their agreement to your formal claim before starting work on site, as in most cases, relief cannot be granted after development has commenced.
Claims for charitable relief, social housing relief or exceptional circumstances relief should be submitted on Form 2: Claiming Exemption or Relief.
Claims for a self build exemption (relating to a whole house) should be submitted on Form 7: Self Build Exemption Claim Form Part 1 and followed by further supporting information, when the development is finished, on Form 7: Self Build Exemption Claim Form Part 2.
Claims for a self build exemption relating to a residential annex should be submitted on Form 8: Self Build Residential Annex Exemption Claim Form.
Claims for a self build exemption relating to a residential extension should be submitted on Form 9: Self Build Residential Extension Exemption Claim Form.
The local planning authority must determine whether or not the exemption or relief would be compliant with European rules about state aid. Further information about state aid and the levy can be found here.
The forms mentioned above are available here:
If you have any legislation or policy questions about the Community Infrastructure Levy you can contact the Department for Communities and Local Government: firstname.lastname@example.org