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CIL and Planning Obligations

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 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 in table 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

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), so indexation will be added to all applications from 1 January 2016.

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. Information on how to pay CIL is found in Chapter 4.0.

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.

 

Updated: 16 Nov 2018
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