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.
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 will be 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.
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 floorspace (such as residential extensions less than 100 square metres of new floorspace) 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.
Development under General Consent
Development commenced under general consent is liable to pay CIL. However, where development is commenced before 6th April 2013, liability will not arise as part of the transitional provisions in the Community Infrastructure Regulations 2010 (as amended). 'General consent' includes permitted development rights granted under the General Permitted Development Order 1995.
Details for Applicants
The Community Infrastructure Levy Regulations 2010 (as amended) places a number of requirements on developers and landowners. Failure to comply with these requirements may result in surcharges or court action.
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. 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 mayresult in surcharges being imposed.
• Liability to Pay CIL: It is important that the liable parties (usually either developers or landowners) are correctly identified as early as possible. Therefore you are encouraged to ensure that an Assumption of Liability Notice is 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 or persons agent accepting liability. Failure to supply such information before work is commenced on site pursuant to a permission may result in additional costs being incurred.
• Commencent 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.
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.
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.