Community Infrastructure Levy (CIL)
When is CIL payable?
The grant of planning permission will trigger the operation of the CIL regime and that the CIL liability thereby arising will only become payable as and when the development is commenced.
Definitions of ‘chargeable development’ and ‘planning permission’ for the purpose of CIL
Under CIL Reg.9, chargeable development for the purpose of CIL “is the development for which planning permission is granted”. CIL Reg.5 further clarifies the meaning of “planning permission” in CIL terms, which include developments granted by general consent, such as permitted developments.
The CIL regime varies for grant of planning permission and deemed grant under a general consent
The CIL regime operates differently depending on whether there is an actual grant of planning permission or a deemed grant under a general consent. With an actual grant it will trigger the issue and service of a CIL liability notice by the collecting authority upon receiving a CIL Assumption of Liability Form. On the other hand, with a general consent the first main step should be the service of a notice of chargeable development by the developer or landowner, which in turn will result in a liability notice.
CIL forms can be downloaded from Planning Portal.
What kind of development does not pay the levy?
1) CIL exemption for minor development (where no CIL claim form is required):
Although many developments are CIL chargeable, CIL liability does not arise when new developments meet at least one of the following criteria:
2) CIL exemption or relief (where CIL claim forms are required):
Health services and education use (provided under the Education Acts or as an institution of higher education) are zero rate under both the Mayor’s and the council’s CIL charging schedule.
In addition, certain developments can claim an exemption or relief where the relevant criteria are met and the correct process (see chapter 3) is followed:
Please note that in order to benefit from relief listed as above, applicants are required to apply for and obtain exemption successfully prior to commencement of the development. Where relief is granted, applicants need to submit a commencement notice before development commences. Procedure and the relevant forms to be filled and submitted can be found in Chapter 3: Process and forms.
CIL Reg.7 specifically defines “Commencement of development” to be “the earliest date on which any material operation begins to be carried out on the relevant land”. CIL Reg.2 defines the meaning of “relevant land” as “the land to which the planning permission relates” and for phased consent, “the land to which the phase relates”. It's different from s106 agreements, where clauses can be added to exclude certain material operations (such as demolition) as “commencement of development”.
Page last updated: 15 December 2023