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)
All CIL forms are 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 one of the forms below:
- Form 8: Self Build Residential Annex Exemption Claim
- 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.