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How is CIL Paid

How is CIL Paid?

When do I have to pay CIL?

CIL is payable on commencement of development and a demand notice will be issued to you as soon as you inform the Council of your intended start date.

Can I pay CIL through instalments?

Yes. You can pay CIL in full as soon as you receive your demand notice, however, depending on the CIL liability it may be possible to pay CIL in either two or three instalments. However, if the correct CIL forms are not submitted e.g. commencement begins before a commencement notice is issued, then the full amount is due immediately.

New Forest District Council has adopted a CIL Instalment policy. This policy is set out below.

New Forest District Council CIL Instalment Policy Amount of CIL liable

No. of instalments

Payment period

Development incurring CIL Liability up to £80,000 (around 10 dwellings)

2

1. One instalment at 60 days after commencement of the development. (50%);

2. 365 days after commencement or on occupation of the first dwelling, whichever is the sooner (50%).

Development incurring CIL liability over £80,000

3

1. 60 days after commencement (30%);

2. 270 days after commencement (30%);

3. 540 days after commencement or on occupation of the first dwelling, whichever is the sooner (40%)

How do I pay CIL in a phased development?

If a CIL liable development is granted planning permission with conditions relating to separate phases of development, then for CIL purposes, each phase can be treated as a separate development. Payment of CIL on a particular phase only becomes due upon commencement of works on that phase. Liability notices, reliefs and exemptions are issued in relation to the individual phase to which they relate.

Is it possible to pay all or some of the CIL liability in the form of land or infrastructure?

Yes. The CIL Regulations make provision for payment in kind to be made in the form of land and/or infrastructure and the Council is offering this method of payment. If you are contemplating the possibility of making such payment in kind you should initiate early, pre-application discussion with the Council to determine whether such payment in kind might be acceptable. The CIL Regulations require Independent valuation and legal contractual processes to be followed if such payment in kind was to be acceptable. The Council has adopted a policy to offer this payment method and a policy document will be adopted before 6 April 2015. A payment in kind can only be accepted where the CIL liability of a development is more than £50,000.

Policy DM3 of the Council's adopted Local Plan Part 2 requires developments of 50 dwellings or more to provide an area of natural green space on, or close, to the site at a size of 8ha per 1,000 population. Of this, 2ha per 1,000 population is an existing policy requirement under Policy CS7, and will be secured via a S106, however the remaining 6ha per 1,000 population can be considered as a Payment in Kind.

What happens if the commencement date of the development changes?

The Council will issue a demand notice based on your commencement date, so if this changes you need to let us know. Simply re-submit a new commencement notice with the new date provided. We will acknowledge this new date.

Can I challenge the decision on CIL liability?

Yes. Appeals can be made against the Council's CIL decision, but the Regulations set out clear timescales for when these appeals can be made.

You can also appeal against:

  • the apportionment of liability;
  • charitable relief decision;
  • self-build exemptions decision;
  • surcharges imposed;
  • commencement of development; and
  • Stop Notice issued.

What happens if I don't pay?

If CIL is not paid, we have the power to take any of the following actions in order to recover the debt including penalties and surcharges. The charge will also continue to show as a Local Land Charge which will be highlighted to any potential purchasers should the property be sold. There are also strong enforcement powers including:

  • removal of the instalments facility
  • surcharges and late payment interest
  • issuing of a CIL Stop Notice
  • apply to the courts for a Liability Order

Examples of penalties for not paying or failing to follow the regulations are set below:

CIL penalties Event

Penalty/Surcharge

Failure to assume liability before commencement

Any relief/exemption cancelled

Instalment policy no longer available and payment required immediately

Surcharges added

Premature commencement of works

Exemption/reliefs cancelled

Surcharges

Late payment

Issue of stop notice

Late payment interest/surcharges

Legal proceedings to recover payment and any surcharges

Failing to pay at all

Jail sentence

Buildings knocked down and damages costs awarded

Land charge default

 Is VAT applied to CIL?

No. CIL is outside the scope of VAT

What is the relationship between CIL and planning obligations?

What will I still have to pay via a S106?

Developers may be asked to provide contributions for infrastructure in several ways. This may be through CIL or by planning obligations in the form of section 106 agreements. Section 106 agreements play an important role in helping to make individual developments acceptable.

From 6 April 2015 the use of planning obligations to secure wider infrastructure benefits is restricted. CIL is intended to fund infrastructure to support the development of an area rather than to make individual planning applications acceptable in planning terms. As a result, there may still be some site specific requirements without which a development should not be granted planning permission and we will work proactively with developers to ensure it is clear what developers will be expected to pay for through which route.

The table below highlights the four main types of planning obligation which will continue to be required under a S106 and in addition to CIL.

S106 Requirements Contribution

Justification

Affordable Housing

Affordable Housing contributions are outside the scope of CIL and therefore the Council's Affordable Housing requirements under Core Strategy CS15.

An advisory note on the implementation of Core Strategy policy CS15 can be found here: http://www.newforest.gov.uk/media/adobe/e/8/Implementation_of_CS15_Affordable_Housing_Guidance_Note_Nov_2012_-_links_revised_Oct_13_.pdf

Onsite Open Space

Core Strategy Policy CS7 requires sites of 0.5ha or over to provide appropriately designed informal public open space on site to a standard of at least 2ha per 1,000 population and to include the provision of designed good quality play spaces. This equates to 2.2ha per 1,000 population and is outside of the scope for which CIL is collected.

Mitigation of impacts on European Designations

Contributions will also be required in accordance with the Council's adopted Mitigation Strategy for European Sites Supplementary Planning Document for access management and monitoring. These items are not classed as 'infrastructure'. This will equate to a contribution of £550 per dwellings on sites of less than 50 dwellings. For sites of over 50 dwellings this contribution will be £50 but with a requirement to provide a new area of natural green space on site.

The Mitigation Strategy can be seen here: http://www.newforest.gov.uk/article/15454/Mitigation-Strategy-for-European-Sites

Specific Site Works (E.G. Junction Improvements)

Depending on the size of the development, site specific works may be required, e.g. to create a new access to a development onto the highway network or improvements to a roundabout in order to mitigate traffic congestion as a result of the increased traffic. Other site specific works could include appropriately designed linkages or green routes to satisfy the Council's design policies.

 

If I have to pay a S106 contribution, will I be paying for the same infrastructure twice?

No. The Council has published a Regulation 123 List which sets out the infrastructure that will be funded wholly or in part by CIL. The Council will not seek contributions through S106 Planning Obligations in relation to such infrastructure.

Updated: 16 Nov 2018
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