Search site
»

About CIL

What is CIL?

The Community Infrastructure Levy (CIL) is a type of planning charge to pay for the infrastructure needed to support new development (such as transport improvements and open space). CIL charges are mandatory and non-negotiable. The legislation for CIL is included in the Planning Act 2008, Localism Act 2011, and the CIL Regulations 2010 (as amended).

The amount of CIL payable depends on the size of a development. Charging Authorities (i.e. New Forest District Council) set the CIL charges (which can be different depending on the use and location of developments), but the Regulations set out how CIL will be collected and spent.

Who has to pay CIL?

Within New Forest District Council, CIL only applies to residential development, which includes all new houses, regardless of  size, and extensions over 100sqm. Where planning permission is not required CIL is still payable but the collection process is slightly different, although the charge is worked out in the same way.

How much CIL does a development pay?

CIL charges are calculated by taking the new floorspace of the development and multiplying it by the CIL rate for that use. How much a development will be liable to pay in CIL has been set following an independent examination of the Council's charging schedule. The CIL rates are effective from 6 April 2015. The Council's charging schedule is set out below.

New Forest District Council CIL Charging Schedule

 CIL Charge per sqm

Dwelling Houses (C3):

£80

A1 Retail

£0

Industry and offices (B1, B2 and B8):

£0

Hotels (C1):

£0

Residential Institutions (C2):

£0

Any Other uses

£0

Some examples of how to calculate a CIL charge can be seen in paragraph 3.16. The amount payable is index linked and can also include late payment interest and surcharges for failing to follow the payment procedure set out in the Regulations.

Regulation 40 of the CIL Regulations 2010 (as amended) sets out the specific formula for calculation for the CIL charge. The chargeable rate is index linked using the All-in Tender Price Index published by the Building Cost Information Service of the Royal Institution of Chartered Surveyors. Indexation will be added annually from the 1 November of the year before the CIL charges began (2014). For 2018, with indexation, CIL is calculating at £96 sqm.

Who is liable to pay CIL? 

Landowners are responsible for the payment of CIL. Although liability rests with the landowner, the regulations recognise that others involved in a development may wish to pay the charge on the landowners behalf. Therefore, anyone can come forward and assume liability for the charge on the development.

Liability can be changed to another party before or after a development commences, but this must be done before the final payment of the CIL is due.

Why are not all types of development liable to pay CIL?

Levy rates are based on the financial viability of different types of development in the District. Those considered to be on the margins of viability have been given a nil rate.

Will a development be liable to pay CIL if there was a planning permission before 6 April 2015?

No. However, if a fresh application is decided after this date it would be liable for CIL even if the application relates to a site that already has a planning permission.

Residential floorspace previously granted planning permission cannot be set against CIL liability on the new development. The exception to this is where an approved proposed is subsequently amended by the removal or variation of a condition (Section 73 applications) and it is only a minor amendment to the original scheme.

Applications under Section 73 of the Planning Act 1990 are a special case. Where the original planning permission was granted prior to the 6 April 2015 but the S73 application is granted after this date, the S73 consent will only trigger CIL for any additional liability it introduces to the development (such as increased floor space).

Are outline applications liable to pay CIL?

Outline planning permissions granted after the 6 April 2015 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 when the reserved matters application for that phase is received.

If a scheme has been granted outline planning permission before 6 April 2015 then it will be liable to pay CIL, regardless of when any reserved matters applications are submitted.

Will a development be liable to pay CIL if there was a refusal of planning permission before the CIL Charging Schedule came into effect on 6 April 2015, but an approval of planning permission on appeal is made after this date?

Yes. If planning permission was refused before 6 April 2015, but a grant of planning permission was made on appeal after this, the development granted planning permission on appeal is liable to pay CIL.

How is CIL calculated?

How do I calculate CIL?

Simply, CIL is calculated based on the net additional increase in floorspace of a development multiplied by the charging rate (£96 sqm)

How is floorspace calculated?

CIL is based on measurements of the gross internal area (GIA) of a building. You will be required to provide the Council with this information when completing the CIL Additional Information Form when you submit your planning application. The Royal Chartered Institute of Surveyors (RCIS) Code of Measuring Practice provides a guide as to how to measure gross internal area of buildings and this will be the standard that the Council uses to confirm the measurements that are provided.

GIA is the area of a building measured to the internal face of the perimeter walls at each floor level. The lists below summarise what should be included and excluded when calculating the GIA.

Summary of Gross Internal Area Measurements Including

Excluding

  • areas occupied by internal walls and partitions
  • columns, piers, chimney breasts, stairwells, lift-wells, other internal projections, vertical ducts and the like
  • atria and entrance halls, with clear height above, measured horizontally;
  • internal open sided balconies, walkways, and the like
  • structural, raked or stepped floors are to be treated as a level floor measured horizontally
  • horizontal floors, with permanent access, below structural, raked or stepped floors
  • corridors of a permanent essential nature (e.g. fire corridors, smoke lobbies)
  • mezzanine floor areas with permanent access (this will only be included as GIA in limited instances)
  • lift rooms, plant rooms, fuel stores, tank rooms which are housed in a covered structure of a permanent nature, whether or not above the main roof level
  • service accommodation such as toilets, toilet lobbies, bathrooms, showers, changing rooms, cleaners' rooms and the like
  • projection rooms
  • voids over stairwells and lift shafts on upper floors
  • loading bays
  • pavement vaults
  • garages
  • conservatories

 

  • perimeter wall thicknesses and external projections
  • external open-sided balconies, covered ways and fire escapes
  • canopies
  • voids over or under structural, raked or stepped floors
  • greenhouses, garden stores, fuel stores, and the like in residential property
  • areas with a headroom of less than 1.5m

Does CIL apply to existing buildings?

CIL will be charged on additional floor-space, i.e. proposed new floor-space minus existing floor-space. However, in order to be eligible, existing buildings must have been in lawful use for a continuous period of at least six months within the period of three years ending on the day planning permission first permits the development. This test is known as the Vacancy Test.

Depending on the type of application the day planning permission first permits the development will vary as follows:

  • Full applications The date on which planning permission is granted unless the development is phased, in which case it may be the date of the final approval of pre-commencement conditions for that phase.
  • Outline Planning Permissions The date of the final approval of the last reserved matter, or, if phased, either the date of the approval of the last reserved matter for a phase or, if earlier and by agreement in writing by the collecting authority, the date of final approval of pre-commencement conditions associated with that phase.
  • Permitted development under a general consent The day on which the collecting authority receives a notice of the chargeable development submitted to it in accordance with Regulation 64 or if no notice of chargeable development is submitted in accordance with Regulation 64, the day on which the last person is served with a notice of chargeable development in accordance with Regulation 64A(3).

CIL will be payable on the entire floorspace of the new development if the demolished site does not pass the Vacancy Test.

Will I have to pay CIL on a new residential dwelling if I don't require planning permission (i.e. permitted development)?

Some development permitted under 'general consent' will be liable to pay CIL. If you intend to develop under general consent, and your development meets the criteria for CIL liability (i.e. larger than 100sqm or creates 1 or more new dwellings), you must submit a Notice of Chargeable Development to the Council before you commence the development. Any existing floorspace can be discounted from the CIL liability if it meets the vacancy test.

Regulation 64 of the CIL Regulations refers to the Notice of Chargeable Development needing to be submitted before the development commences, or change of use occurs.

Is CIL chargeable for subdividing a house into two or more homes?

No. Unless additional new build floorspace is provided as part of the scheme in which case the additional floorspace may be liable.

Is CIL payable on garages?

Yes. Garages are liable for CIL whether integral to the new house design or detached.

No CIL is payable on 'lean to' or fully open sided car ports/canopies

 Is CIL chargeable on mobile homes?

No, CIL can only be charged on buildings. Mobile homes are not buildings as defined by planning law and therefore no CIL will be charged on them.

Should roof/loft areas be included in the calculation of CIL floorspace?

Roof/loft space that is not generally accessible except via a loft ladder should not be included as chargeable floor space. Loft space that is used as rooms with stairs or a permanent ladder is chargeable floor space. This includes accessible storage areas.

What if my development has more than one use?

CIL in New Forest District Council is only payable on C3 residential development. Therefore, you only need to calculate the proposed floorspace associated with residential development. The floorspace of existing buildings, of any use, can be taken into account in calculating the chargeable amount.

As the threshold for CIL is 100sqm (or on the creation of a new dwelling), if a new house is 110sqm in size, is CIL payable on the 110sqm or the 10sqm above the threshold?

As soon as the threshold is reached, the whole build is chargeable. So CIL would be payable on the 110sqm.

Are there some simple examples for calculating amount payable?

One new residential house, no demolition, no indexation

Residential development for one house with 100 sqm of chargeable floorspace. Paid on time with no surcharges for failing to follow the payment process. No exemptions or relief.

Chargeable floorspace = 100 sqm

Charges = £80sqm

Indexation = BCIS ( Building Cost Information Service ) rates

CIL payable = 100 x £80 x indexation = £9,600

10 new houses including some demolition, no indexation

Residential development for 10 house with 1,000 sqm of chargeable floorspace and demolition if 300sqm of floorspace. Paid on time with no surcharges for failing to follow the payment process. No exemptions or relief.

Chargeable floorspace = 1,000 sqm

Existing Floorspace = 300 sqm

Total Chargeable floorspace = 700 sqm (1,000 - 300)

Charges = £80  sqm

CIL payable = 700 x £80 x indexation = £67,200

Can I negotiate how much I have to pay?

No. CIL liabilities are legally binding under the regulations and are non-negotiable.

When will I know how much I will have to pay?

Before planning permission is granted: Indicative estimate

  • It is possible to take an estimate of the likely CIL at this stage.
  • However, as the floorspace and the permission date are not fixed at this stage, the figure may change.

Provisional amount and the "liability notice": After planning permission is granted, or a Notice of Chargeable Development has been received, the Council will issue a "liability notice". This notice will include:

  • The amount that would be payable should the development be commenced immediately and the correct payment process followed;
  • The amounts of any relief or exemption that has been granted;
  • Information on the payment procedure;
  • Penalties for not following the procedure; and
  • Other information for liable parties.

The Council will issue a revised liability notice if the chargeable amount changes in the following circumstances:

  • Following a review of the chargeable area (e.g. following amendments to plans);
  • A successful appeal on the Council's calculated floorspace;
  • Following any successful application for relief or exemption;
  • Any earlier liability notices will then cease to have effect.

Commencement: confirmed amount, payment and the "demand notice": Once the Council is aware of commencement on a development, a "demand notice" will be sent to the liable party which will set out:

  • The total amount payable by that party;
  • Any surcharges or late payment interest;
  • The dates when payments will be due;
  • Advice on payment instructions.

What is shown as a Local Land Charge?

The chargeable amount that is set out in the liability notice will be registered as a local land charge. The charge will be registered against the property until all remaining CIL liabilities have been paid and will show up on all land searches for the property.

Where a relief or exemption applies the charge will remain registered until the end of the period within which the relief can be cancelled due to a disqualifying event.

What is defined as commencement?

Development is commenced when material operations begin. These are defined within Section 56 of the Town and Country Planning Act 1990. Operations include any construction work, demolition, digging of a trench for foundations, laying of underground pipes or mains to the foundations, laying of construction of roads or any change of use in the land.

What happens if I don't pay CIL on time?

CIL payment is mandatory and non-negotiable. If you do not pay on time you will be subject to a penalty, or surcharge and any agreements for instalments or relief will be withdrawn. There are strong enforcement powers and penalties for failure to pay including stop notices, surcharges and even prison terms.

 

Updated: 9 Oct 2019
Powered by GOSS iCM