Community Infrastructure Levy
The Community Infrastructure Levy (CIL) is a new mechanism to allow local planning authorities to seek to raise funds, in the form of a levy. It is required from development in order to pay for the infrastructure that is, or will be, needed as a result of that new development.
An examination of the submitted Huntingdonshire Charging Schedule was held on the 6th and 7th March 2012. The examiner’s report was published on 11th April 2012 and concluded that, subject to two modifications, the Charging Schedule be approved. The report can be viewed in the linked documents section on this page
On the 25th April 2012, Huntingdonshire District Council approved the implementation of the Community Infrastructure Levy from the 1st May 2012 . Three documents were approved which facilitate that implementation. They are:
• The Community Infrastructure Levy Charging Schedule 2012 which sets out the charge per square metre that will apply to each category of new development where new floorspace is being created. In certain circumstances CIL may also be charged where planning permission is granted to change the use of existing floorspace. The standard charge of £85 per sq m will apply to all new floorspace created unless a different rate is set out in the schedule;
• The CIL Instalment Policy which sets out the circumstances when payments may be made in instalments provided certain criteria are met, including that the authority has received a CIL Commencement Notice before the commencement of the development on site; and
• The CIL Regulation 123 List 2012/13 which fulfils the requirement of the regulation for the Local Authority to publish a list of infrastructure that could benefit from CIL funding on its website. It is important to note however that inclusion of a project or type of infrastructure on the list does not signify a commitment to fund (either in whole or in part) the listed project or type of infrastructure through CIL. Nor does the table imply any order of preference of funding. The CIL Regulation 123 list was updated in 2013 and, following a consultation period from the 2 April to 24 May 2013, was approved by Huntingdonshire District Council on the 20th June 2013 . The Community Infrastructure Levy Regulation 123 List gives details of those projects or types of infrastructure that it intends to fund through the levy. The detail of the list is shown within the Huntingdonshire Infrastructure Business Plan (IBP) 2013/14, which forms part of the Regulation 123 List, and clearly shows the infrastructure requirements to be funded by CIL or S106 Planning Agreements. This has been prepared with reference to the underpinning evidence on infrastructure planning made publicly available at the CIL examination.
All the above documents may be viewed from the Linked Documents section of this webpage.
Section 106 Agreements and planning conditions will also continue to be used for local infrastructure requirements on development sites, such as site specific local provision of open space, connection to utility services (as required by legislation), habitat protection, access roads and archaeology. For large scale major developments (200 units or above) further obligations could be required. The principle is that all eligible developments must pay towards CIL as well as any site specific requirement to be secured through Section 106 Agreements. The Developer Contributions Supplementary Planning Document was adopted in December 2011 and can be viewed on the Supplementary Planning Documents webpage (see Related Information).
From the 1st May 2012, Huntingdonshire District Council has been obliged to collect the CIL Levy from liable parties on commencement of all applicable development which received planning permission on or after the 1st May 2012.
The Council is required to publish an annual report covering the financial year setting out how much CIL has been collected and how it has been used to fund infrastructure; this forms part of the Council’s Annual Monitoring Report. The latest report may be accessed from the linked documents section of Monitoring and Research webpage (see link in Related Information).
Details for Applicants
Developers, applicants and landowners are encouraged to read the requirements of the regulations. A detailed guidance for applicants is available in the linked documents section, along with a number of other information and guidance notes. The following provides information on some of the key requirements – please note this is not an exhaustive list.
• Notification of development floorspace: It is necessary for applicants or agents to provide the necessary information regarding existing and proposed floorspace to the Council. This can be done by completing the Additional Questions form. Failure to supply this information may result in surcharges being imposed. In cases of permitted development, a Notice of Chargeable Development form should be used. Please see details in following section.
• Liability to Pay CIL: It is important that the liable parties (usually either developers or landowners) are correctly identified as early as possible. Therefore an Assumption of Liability Notice should also be submitted to the Council. This needs to identify who is accepting liability for CIL payment in regard to the development. This must be signed by the person/s accepting liability, and not by an agent. Failure to supply such information before work is commenced on site pursuant to a permission may result in additional costs being incurred.
• Commencement of Development: It is the responsibility of the liable party/s or by default the landowners of development sites to ensure that the Council is notified of the proposed commencement of development by the submission of a CIL Commencement Notice on any development which may be CIL Liable. The failure of the liable parties to submit the appropriate notice before the commencement of development could result in surcharges being applied in accordance with the CIL Regulations 2010 (as amended). In addition, the right to pay by instalments will also be lost if commencement starts on site without the prior submission of the appropriate commencement notice to Huntingdonshire District Council. Furthermore the right to apply for exemptions e.g. for charitable or social housing would also be lost. Please note that if you have not received a Liability Notice by the time you are proposing to commence, you should contact the Council directly to ensure all legal paperwork is actioned before development commences.
• Copies of the Additional Questions form, Assumption of Liability Notice and Commencement Notice may be downloaded from the Planning Forms webpage (see Related Information).
The Planning Portal also provides downloadable copies of all the CIL forms and Notices. They can be found by using the external links to the Planning Portal CIL Advice page.
Further general CIL advice may be obtained from the link provided to the Planning Portal CIL Advice webpage.
Development under General Consent (Permitted Development)
Development under general consent / permitted development is liable to pay CIL. In such cases a CIL Notice of Chargeable Development must be completed and submitted to the Council with 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 on completion;
• photographic evidence of buildings in use on the relevant land; and
• the development which is the subject of the notice.
The above must be submitted prior to commencement in order for the Council to determine any liability. Failure to supply this information may result in surcharges being imposed. A copy of the Notice of Chargeable Development form may be downloaded from the Planning Forms webpage (see Related Information).
'General consent' includes permitted development rights granted under the General Permitted Development Order 1995.
Exemption for Minor Development
Development proposals (with the exception of developments that create one or more dwellings), which create less than 100 square metres of gross internal area of new build (such as residential extensions less than 100 square metres of new build) will be exempt from the Community Infrastructure Levy and will not normally be charged. Development which creates one or more new dwellings will be charged the Community Infrastructure Levy irrespective of the floorspace created.
Exemption for Self build residential extension, annex or dwelling
Development proposals for residential extensions, annexes or dwellings may be exempt from paying levy. Any such proposals must apply for such an exemption on the appropriate forms, which can be accessed via the Planning Forms webpage (see Related Information). All applications must be received and have a formal decision issued by the Council prior to commencement of the development.
Exemption for Charities
Development proposals owned by charities are exempt from liability to pay CIL if they meet certain qualifying criteria. The owner of a material interest in the land is exempt if they are a charitable institution and the chargeable development will be used wholly or mainly for charitable purposes (whether of the owner or of the owner and other charitable institutions). For the purposes of CIL, a charitable institution is defined as:
• a charity,
• a trust of which all the beneficiaries are charities, or
• a unit trust scheme in which all the unit holders are charities,
and that the definition “charity” means any person or trust established for charitable purposes only, as defined in section 2 of the Charities Act 2006. This is not the same as ‘not for profit’ groups or organisations.
The above does not apply where—
(a) that part of the chargeable development to be used for charitable purposes will not be occupied by or under the control of a charitable institution;
(b) the material interest is owned by the aforementioned owner jointly with a person who is not a charitable institution; or
(c) exemption of the owner from liability to pay CIL would constitute a State aid.
A person who wishes to benefit from charitable relief must complete a claim for charitable relief. This must be received by the Council before commencement of the development.
Social Housing Relief
Development proposals which comprise of qualifying social dwellings (in or whole or in part) are eligible for relief from liability to CIL.
To qualify for relief, the claimant must own a material interest in the relevant land (the area granted planning permission) and have assumed liability to pay the levy for the whole chargeable development. A claim for this relief must be made by submitting a CIL Claiming Exemption or Relief form to the Council prior to commencement of the development. A claim for relief will lapse if the chargeable development to which the claim relates is commenced before the collecting authority has notified the claimant of its decision on the claim. Further information can be found in the CIL Relief Information Document in the external links section of this webpage. A copy of the CIL Claiming Exemption or Relief form may be downloaded from the Planning Forms webpage (see Related Information).
The Charging Schedule 2012 includes a charge for ‘community uses’. It is important to understand that the CIL rate of £0 per sq m for community uses (those that are provided by the public, not-for-profit or charitable sectors) only refers to development types within:
• D1 (Non-residential institutions - except Health Uses) planning use class: crèches, day nurseries, non-residential education and training centres, museums, public libraries, public halls, exhibition halls, places of worship, law courts and;
• D2 (Assembly and Leisure) planning use class: Assembly and Leisure Cinemas, concert halls, bingo halls, dance halls, swimming baths, skating rinks, gymnasiums, other areas for indoor and outdoor sports or recreations not involving motorised vehicles or firearms.
Discretionary Relief for Exceptional Circumstances
Discretionary Relief for Exceptional Circumstances may only happen if a planning obligation of greater value than the chargeable amount has been entered into in respect of the planning permission which permits the chargeable development and the Council considers that payment of the levy would have an unacceptable impact on the economic viability of the development, as required by the Community Infrastructure Levy Regulations 2010 (as amended).
Huntingdonshire District Council will offer such relief. A statement confirming this has been issued, in compliance with Regulation 56, and can be viewed in the linked documents section of this webpage.
It should be noted that the Council has undertaken viability assessments to carefully consider the level at which the proposed CIL charges have been set, taking into account the provision of affordable housing at 40% and development specific S106 obligations. In view of this, it is important to note that the consideration for relief will be rare and any relief given must be done in accordance with the procedure stated above and state aid rules.
Community Infrastructure Levy Appeals
Appeals can be made against all aspects of the Community Infrastructure Levy collection and enforcement system, from the levy collection authority’s calculation of the amount due to any enforcement actions it may take. There are two exceptions where an appeal system does not exist: social housing relief and exceptional circumstances relief.
CIL appeal advice may be found on the Planning Portal CIL Appeal advice pages. A link to the page can be found in the external links section of this webpage. The appeal advice also includes details of how parties may ask for a review of CIL calculations from the Huntingdonshire District Council as charging Authority, links to the Valuation Office for further details on how to make formal appeals against calculations and apportionment cases and advice and forms for CIL enforcement appeals to the Planning Inspectorate.
Consequences of Non payment of CIL or failing to follow CIL Procedures
The consequences for the non payment of the Community Infrastructure Levy or following procedures can be serious. The penalties depending on circumstances may result in significant financial surcharges, asset seizure, or even imprisonment in cases where the charging authority has been unable to recover the CIL amount due by seizing and selling your assets and land. Details of the consequences can be found in the linked documents section of this webpage.