Community Infrastructure Levy

Please note all prices are quoted per square metre

The Community Infrastructure Levy was introduced through the Planning Act 2008 and came into force through the Community Infrastructure Regulations 2010. It is a tool for Local Authorities to collect funds to support development in their area. Where the Local Authority has chosen to not adopt CIL, s.106 Agreements are still employed.

FAQS

All new development of 100sqm or more or creates a new dwelling is liable with exceptions stated below or that which is made exempt by the Local Authority.

What kind of development does not pay the levy?

• Development of less than 100sqm unless this is a whole house.
• Houses, flats, residential annexes and residential extensions built by ‘self-builders’.
• Social housing which meets relief criteria.
• Charitable development that meets the relief criteria.
• Buildings into which people do not normally go.
• Building which people go only intermittently for the purposes of inspection or maintenance.
• Structures which are not buildings.
• Specified development which Local Authorities have considered to be ‘zero’ rate.
• Vacant buildings brought back into the same use.
• Where the levy liability is calculated to be less than £50, no levy is due

Who is liable?

Ultimately, the landowner is liable for the levy but anyone involved may take on the liability to pay. Where no-one has assumed liability, the liability will automatically default to the landowner.

How are the rates set?

The charging authority sets out the levy rates in a charging schedule. The infrastructure planning evidence base for the development strategy in their area guides the charging schedule. The rates set should not undermine the economic viability of a development but should be sufficient to fund the necessary infrastructure. The charging authority is generally the same as the collecting authority (the Local Authority), except in London where the Boroughs collect monies on behalf of the Mayor.

Where does the money go?

The levy can be used to fund a broad range of facilities such as play areas, parks and green spaces, sports and leisure facilities, police stations and community safety facilities, hospitals, schools, flood defences and health and social care facilities. It can also be spent on repairing or increasing the capacity of existing infrastructure if it is necessary to support development. However, the levy must not be used to fund affordable housing.

15% of the levy collected must be passed directly to parish and town councils (in England) and community councils (in Wales) where development has taken place. Where a neighbourhood plan is in place in England the community will receive 25% of the levy revenues arising from development in their area.

Where a parish town or community council does not exist, the community will still benefit from 15% of the levy revenue. In this case, the Charging Authority will retain the levy receipts but will engage with the local community.

The neighbourhood portion of levy revenue must be paid every 6 months at the end of April and October.