Introduction

The Planning Act 2008 made provision for the introduction of the Community Infrastructure Levy (CIL). Regulations governing the operation of CIL were first introduced in April 2010, and have subsequently been amended in 2011, 2012, 2013, 2014 and 2015. Further details relating to The Planning Act 2008 and CIL Regulations 2010 (as amended) are available online.

What is CIL?

The Community Infrastructure Levy allows local authorities in England and Wales to raise funds from developers undertaking new building projects in their area to fund a wide range of infrastructure that is needed to support new development. This includes transport schemes, schools, flood defences, hospitals and other health and social care facilities, parks, green spaces, leisure centres and other community and cultural facilities. As almost all development has some impact on the need for infrastructure, services and amenities, this tariff-based approach is seen as an effective, quicker and fairer framework to fund new infrastructure to support growth.

When will it come into effect?

The Adopted CIL Charging Schedule came into effect on 4 April 2016 and applies to all development permitted after this date. The Council has produced a CIL FAQ note which provides further information on CIL.

CIL Indexation

When calculating the CIL levy, the CIL Regulations 2010 (as amended) require collecting authorities to apply an index of inflation to each relevant CIL rate to keep the levy responsive to market conditions.

From 1 January 2020, the index is the RICS CIL Index published by the Royal Institution of Chartered Surveyors.  This annual index figure will be published on or around 1 November each year and will apply from 1 January of the following year.

The RICS CIL Index applied from 1 January 2022 is 332.

DevelopmentCIL Rate (£ per sq.m) at 2016Rate for 2022 (£ per sq.m, index linked)
Residential – Zone 1 Battle, Rural North and West£200.00£241.45
Residential – Zone 1 Sheltered/Retirement Homes (C3)£140.00£169.02
Residential – Zone 2 Rye, Hastings Fringes and Rural East£135.00£162.98
Residential – Zone 3 a) Bexhill – Urban£50.00£60.36
Residential – Zone 3 b) Bexhill- Rural£170.00£205.24
Residential – Zone 3 c) Bexhill– Strategic urban extensions£75.00£90.55
Extra Care Housing (throughout District)£25.00£30.18
Retail – in centre convenience£100.00£120.73
Retail – out of centre convenience£120.00£144.87
Retail – out of centre comparison£250.00£301.82
All other forms of Development£0.00£0.00

In which Zone does my proposed application fall?

Rother District Council has adopted a differential zone approach to setting residential CIL rates across the district. Please refer to the CIL Charging Schedule for clarification.

  • Zone 1: Battle, Rural North and West includes the following parishes and wards: Ticehurst, Etchingham, Hurst Green, Salehurst and Robertsbridge, Bodiam, Ewhurst, Sedlescombe, Burwash, Brightling, Dallington, Mountfield, Whatlington, Penhurst, Ashburnham, Catsfield, Crowhurst, Brede, Northiam, Beckley and Battle Town Ward.
     
  • Zone 2: Rye, Hastings Fringes and Rural East includes the following parishes and wards: Peasmarsh, Rye Foreign, Westfield, Udimore, Guestling, Pett, Fairlight, Icklesham, Camber, East Guldeford. Playden, Iden, and Rye Ward.
     
  • Zone 3: Bexhill CIL Zone 3a Urban (within the existing Bexhill development boundary)
    Bexhill CIL Zone 3b Rural (land outside the existing development boundary)
    Bexhill CIL Zone 3c Strategic Urban Extension (please refer to CIL Charging Schedule Maps for clarification)

Is my application proposal liable for CIL?

The following types of planning applications are liable:

  • The levy will be payable on residential and retail development identified in the Charging Schedule which creates net additional floor space, where the gross internal area (GIA) of new build exceeds 100 square metres. That limit does not apply to the creation of new dwellings (houses or flats), and a charge can be levied on a single house or flat of any size, unless it is built by a ‘self builder’.
  • Any new dwellings, including replacement dwellings, regardless of their gross internal floorspace (GIA).
  • The conversion/change of use of a building which has not been used for a period of time.
  • When submitting an application for residential or retail development you must submit a Planning Application Additional Information Requirement form with your planning application and we can then work out your CIL liability. Failure to do so will result in your application not being validated.

What development will not be liable for CIL?

Development may not be liable for CIL in the following scenarios:

  • development of less than 100 square metres (see Regulation 42 on Minor Development Exemptions) – unless this is a new dwelling, in which case the levy is payable
  • houses, flats, residential annexes and residential extensions which are built by ‘self builders’ (see Regulations 42A, 42B, 54A and 54B, inserted by the 2014 Regulations)
  • affordable housing that meets the relief criteria set out in Regulation 49 or 49A (as amended by the 2014 Regulations)
  • charitable development that meets the relief criteria set out in Regulations 43 to 48
  • buildings into which people do not normally go (see Regulation 6(2))
  • buildings into which people go only intermittently for the purpose of inspecting or maintaining fixed plant or machinery (see Regulation 6(2))
  • structures which are not buildings, such as pylons and wind turbines
  • specified types of development which local authorities have decided should be subject to a ‘zero’ rate and specified as such in their charging schedules
  • vacant buildings brought back into the same use (see Regulation 40 as amended by the 2014 Regulations)
  • If the development only involves the subdivision or installation of a mezzanine floor (measuring less than 200 square metres) within a building which has been occupied in its lawful use for at least six continuous months of the previous three years

The development I propose is permitted development so what do I need to do?

In cases where Permitted Development rights are exercised and planning permission is not required but where you are creating a new dwelling, such as through a prior approval application for the conversion of offices or an agricultural barn to residential use, or are adding over 100 m2 as CIL liable development, the CIL process will apply. You are required to submit CIL form 5 – Notice of chargeable development to the Council (with your prior approval application where appropriate), and this must be accompanied by a plan which identifies:

  • The land to which the notice relates;
  • Any buildings in use on that land which are to be demolished before the completion of the chargeable development;
  • Any buildings in use on that land which will be part of the chargeable development;
  • The development which is the subject of the notice;
  • You can also submit photographic or other evidence if you are claiming lawful use over a 6 month continuous period during the past 3 years.

If the Permitted Development is CIL liable no work should commence until the relevant notices have been served on the Council (Form 6 : Commencement Notice). If you commence work without notifying the Council you could forfeit any rights you have to appeal or pay in instalments, and you may also incur fines and surcharges.

If my planning application is liable for CIL what do I need to do now?

Please note that there is a Planning Application Additional Information Requirement form available on the Planning Portal which you must submit with your application. Your application will be made invalid without this form. The purpose of this form is to set out the floor areas of your development and also the area of any buildings to be demolished which should be credited against the new build floor area.

If my application is granted, what happens next?

We will issue a Liability Notice with your decision notice, and this will tell you how much CIL is payable. The following must be completed prior to commencement of development

  • Assumption of Liability Notice: The person(s) responsible for paying CIL must send us this notice before commencement. If this is not done the charge will default to the owner of the land and there may be additional costs.
  • Commencement Notice: This must be sent to us with the date when the development will commence. If we do not receive this notice a penalty will be added and full payment of the CIL charge will be due immediately.
  • Claim for relief:  This must also be submitted prior to commencement.
  • Demand Notice:  We will then issue a Demand Notice for the CIL payment.

NOTE: The demolition of a building constitutes development under regulation 7(2) of the CIL Regulations 2010 (as Amended)

CIL forms (all available from the Planning Portal)

Planning Application Additional Information Requirement form – submit this with your planning application in all cases where the proposed development is CIL liable.

CIL form 1 – Assumption of liability – used to assume liability for the payment of CIL. It also needs to be completed to claim relief or exemption, including self-build exemption.

CIL form 3 – Withdrawal of assumption of liability – use this form if you have assumed liability to pay CIL but will no longer be the party making the payment.

CIL form 4 – Transfer of assumed liability – this should be used to transfer the responsibility for paying CIL between parties. It should be used if the person who assumed liability using CIL form 1 will no longer be paying the CIL, and has already agreed with another party that it is now their responsibility.

CIL form 5 – Notice of chargeable development – this is to be used to let us know about work being carried out under General Consent/Permitted Development which may be CIL liable.

CIL form 6 – Commencement notice – this must be used to advise us when work is about to commence on site on a CIL liable development. This also needs to be submitted even if an exemption from CIL is granted. If this notice is not served on the Council there are penalties to pay.

CIL form 10 – Claiming exemption or relief – for claiming exemption or relief for social (affordable) housing or developments by registered charities for charitable use.

Relief for self-builders and householder extensions

Exemption from CIL has been introduced for self-builders. This means that if you are either doing the building work yourself or commissioning a builder to do the work, you may be eligible for exemption from paying the CIL. Under this system, anyone who is extending their own property, (including building an annexe) or building a new property to occupy as their primary residence, can claim relief from CIL. However this is not an automatic process and must be applied for prior to work starting on site. You must also assume liability for the development and submit a CIL Commencement Notice before work starts in order for the exemption to be valid.

For householder annexes or extensions, you need to submit

Form 8: Self Build Residential Annex Exemption Claim

Or

Form 9: Self Building Residential Extension Exemption Claim

For new dwellings you should submit the Form 7: SB1-1 : Self build exemption claim form Part 1 – please pay special attention to the declarations in Section B. On completion of a new dwelling for which exemption has been granted you will then need to submit the Form 7: SB1-2 : Self build exemption claim form Part 2 to be accompanied by supporting evidence including a completion certificate, utility bills, bank statements or similar showing the property address, self-build mortgage or similar. Details of what needs to be submitted are included in the form, and we must receive this form for the exemption to be valid.

Form 8: SB2 – Self build residential annex exemption claim – to be submitted with your application if you want to claim exemption from CIL because you are building your own annex, or you are employing a builder and it is part of your sole or main residence

Form 9: Self build residential extension exemption claim – to be submitted with your application if you want to claim exemption from CIL because you are building an extension, or you are employing a builder and it is part of your sole or main residence

Relief for social (affordable) housing and charities

Relief is also available when new buildings are being provided for social (affordable) housing or for charitable purposes. This can be claimed using: CIL Form 10 Claiming Exemption or Relief

How much do I have to pay?

Eligible developments which receive planning permission from 4 April 2016 will be charged in accordance with the rates set out in the Adopted CIL Charging Schedule. The amount payable is calculated when planning permission is granted and must be paid upon commencement of development in accordance with the Council’s Instalment Policy.

For retail proposals the definition of convenience goods include food and non-alcoholic beverages, tobacco, alcoholic beverages, newspapers and periodicals and non-durable household goods. For comparison goods this includes clothing, shoes, furniture, household appliances, tools, medical goods, games and toys, books and stationery, jewellery and other personal effects.

The Council has adopted an Instalments Policy which allows for payments to be made at set times following commencement of the development. Failure to pay on time the applicant will forfeit his right to pay in Instalment and will be required to pay the full liability within 60 days.

What happens if I do not pay the charge?

Unlike s106 obligations, the CIL payment is mandatory and non-negotiable and there are penalties and surcharges for non-payment, including the option to pay by instalment being automatically withdrawn. There are also strong enforcement powers, including Stop Notices, surcharges and prison terms.

Can I appeal?

You can appeal against the Council’s decision in relation to your CIL liability, but please note that appeals must be made within 60 days of the Liability Notice being issued, and appeals can only be made after you have formally asked us to recalculate the CIL amount (which must be done within 28 days).

You can also appeal against the apportionment of liability, charitable relief, self-build exemptions, surcharges, commencement of development and a Stop Notice. There is also information and the relevant forms on the Valuation Office Agency website and on the Planning Portal.

CIL Governance and Spending

Community Infrastructure Levy Governance Arrangements

Rother District Council, as a Charging Authority for CIL, retains a portion[1] of CIL generated. This retained portion is called Strategic CIL and it must be spent on projects which deliver significant infrastructure to support the development of the area.

In order to effectively allocate strategic CIL monies to projects, Rother District Council has established the Strategic Community Infrastructure Levy Allocations Panel (‘The Panel’). The Panel is comprised of Councillors and is supported by officers. The purpose of the Panel is to consider which projects should be invited to make funding applications; to consider submitted applications; and to allocate strategic CIL funding[2]

The membership of the Panel is:

  • Portfolio Holder for Strategic Planning
  • Portfolio Holder for Economic Development and Regeneration
  • Portfolio Holder for Finance and Performance Management
  • Leader of the Council
  • Chair of Overview & Scrutiny

The meetings of the Panel are not held in public, however, the minutes from their previous meetings can be found here:

The projects that the Panel consider for strategic CIL funding will be informed by RDC’s Infrastructure Delivery Plan (IDP) and through annual and regular contact with Town and Parish Council’s and infrastructure providers. The IDP sets out a list of infrastructure requirements to support development proposed by the Local Plan.

Parish and town councils and infrastructure providers will be asked to provide details of their proposed infrastructure requirements to support development through the Local Plan or where housing is built during the Local Plan period. The projects the Panel will consider should have a wide strategic impact in Rother, instead of being locally focussed. Smaller scale projects which are more localised could instead be funded using the local portion of CIL which Town’s and Parish Councils receive.

Funding allocation areas

The Strategic CIL funds that the Panel will allocate are sub-divided into four specific allocation areas:

  • Rother Infrastructure Fund – 55% of the Strategic CIL will fund projects where RDC considers an infrastructure improvement or project is required to meet the adopted Local Plan objectives. Those selected from the Infrastructure List to apply for funding from the Rother Infrastructure Fund (RIF) will be required to demonstrate how their infrastructure scheme proposal meets the Local Plan and Corporate Plan objectives. The RIF will be split into two sub funds – one for Bexhill and one for rural Rother, each fund representing the actual CIL funds generated in those two areas and to fund infrastructure in each area. Allocation of funds to each area will be limited to the funds generated by each area, except in exceptional circumstances where the project would benefit the whole of Rother.
  • Infrastructure Matched Fund – 25% of the Strategic CIL will fund projects specific to individual Towns and Parishes of Rother and the amount requested from the Infrastructure Matched Fund (IMF) should be match-funded and can only be used in towns and parishes where housing is allocated and built, but also available where non-allocated sites of at least 6 houses are permitted and constructed, as the purpose of CIL is to fund substantive infrastructure that demonstrates it helps offsets the impact of new development. Those town and parish projects with a wider impact could receive a greater proportion of funding (up to 100%) from the IMF depending on whether and to what extent the project can truly demonstrate a wider infrastructure benefit. The IMF will also be split into two sub funds – one for Bexhill and one for rural Rother, each fund representing the actual CIL funds generated in those two areas and to fund infrastructure in both areas. Funding from the IMF is not automatic and is dependent on a parish or town having a prioritised infrastructure plan/list. Funding will need to be applied for by application.
  • Climate Emergency Bonus Fund – 20% of Strategic CIL will support the Council’s commitment to be a carbon neutral district by 2030 as set out in the Environment Strategy (September 2020). While, the Council would expect all infrastructure proposals to consider and minimise their carbon emissions, the Climate Emergency Bonus Fund will provide additional funding where infrastructure projects can demonstrate that they will make a significant contribution to the reduction of carbon emissions or to the offsetting of carbon emissions. A project must specifically indicate in their application that they would like to claim the climate emergency bonus and set out how their project will achieve demonstrable carbon reductions / offsetting. It should be made clear what difference the ‘climate emergency bonus’ would make to their project and, where appropriate, what the bonus will allow them to do in addition to what is already proposed within their project. Those projects from either the RIF or IMF which demonstrate green credentials can also apply for “top-up” funding from this pot. This fund can also be used to fully fund projects which meet is requirements.
  • Where there are monies that have not been allocated from the IMF (over a given time period to be agreed), these monies will be transferred to a Residual Fund (RF), which again will be split into two sub funds – one for Bexhill and one for rural Rother. It is proposed that these RF be apportioned for use in areas where large Community Land Trusts (CLTs), Exception Sites or solely Affordable Housing Schemes have been developed as these types of development are exempt from CIL. In addition, the RF may allocate monies that would normally be eligible for funding from the Community Grant Scheme (CGS) if they are considered within the Strategic CIL infrastructure definition and cannot be funded through Local CIL or other local funding sources (Public Works Loan Board (PWLB), parish or town reserves etc.). Funding applications can then be invited from these areas for infrastructure schemes for consideration by the Strategic CIL Allocations Panel.

Expression of Interest

An 8-week expression of interest round is taking place from Monday 5 September 2022 to Monday 31 October 2022. This is for organisations to apply for their projects to be included on the Priority List of infrastructure provision. The Priority List is the list that will inform the Panel on which projects to invite to apply for strategic CIL funding. Inclusion on the list is not a guarantee of an invitation to apply for funding, this will be decided upon by the Panel.

The Principal CIL Officer will be in contact once the expression of interest round has closed to update organisations on the next part of the process, including when the Panel will meet to consider which projects to invite to apply for funding.

After this initial expression of interest round further expressions can be submitted which will be, subject to meeting the criteria for CIL funding, included on the Priority List for consideration by the Panel at later meetings.

The Principal CIL Officer will make contact if the Panel seek to invite your project to apply for Strategic CIL Funding.

If you have a project which you would like to put forward, then please complete the expression of interest form and return via email to cil@rother.gov.uk


[1] Up to 5% can be spent on administrative expenses; 15% (capped at £100/dwelling) of relevant receipts is passed to the parish council, rising to 25% (uncapped) where there is a neighbourhood plan in place.

[2] subject to Chief Executive approval via Delegated Authority.

Strategic CIL Funding Timetable 22/23

The timetable for strategic CIL funding which the Strategic CIL Allocation Panel will follow for 2022/2023 can be found below.

MonthFunding Protocol Key MilestonesOther CIL Responsibilities
Sep 22An 8-week Expression of Interest round takes place. Expressions will be submitted for inclusion on the Infrastructure Priority List. 
Nov 22The Panel will meet to consider the expressions of interest which have been submitted and the updated Infrastructure Priority List.   The Panel will consider which items to invite to apply for funding, taking into consideration the amount of funding available.Contact made with Infrastructure providers and Town and Parish Councils to identify infrastructure priorities for the year ahead, which will form the Infrastructure List.  
Dec 22Those invited to apply for funding will have 8 weeks to submit applications.   The applications will be validated and assessed by officers.   
Feb 23Panel to meet and discuss applications and recommend which ones should receive funding. The Chief Executive of RDC will be requested to use delegated authority to implement the recommendations of the Panel and release funding   
Jun 23Subject to sufficient Strategic CIL funds being available the Panel will meet to discuss the Infrastructure List and expressions of interest and shortlist infrastructure priorities/projects and recommend which ones should be invited for funding. 
Jul 23Those invited to apply for funding will have 8 weeks to submit applications.   The applications will be validated and assessed by officers.   
Sep 23Panel to meet and discuss applications and recommend which ones should receive funding. The Chief Executive of RDC will be requested to use delegated authority to implement the recommendations of the Panel and release funding. 
Nov 23 Contact made with Infrastructure providers and Town and Parish Councils to identify infrastructure priorities for the year ahead, which will form the Infrastructure List.    
Dec 23 Updates on all approved projects to feature in the annual Infrastructure Funding Statement.  

How was CIL adopted in Rother?

The CIL Charging Schedule followed a number of stages prior to approval, including two rounds of consultation and independent examination. There is more information on this on the Examination Web Page

Annual CIL Monitoring

The Council is required by the relevant regulations to report on the amount of CIL received, spent, transferred and retained in each financial year through the Infrastructure Funding Statement (IFS). The requirement to produce an IFS came into force on 1 September 2019.

The Council’s IFS can be found can be found on the Planning Policy Monitoring page.

Contact information

Email: CIL@rother.gov.uk

Further information

Further information can be found on the Planning Portal website.