Community Infrastructure Levy (CIL) is a charge that can be imposed by Local Authorities to enable them to fund and deliver supporting infrastructure in the local area. We’ve also created a helpful guide to explain the CIL charge and how it’s used – read it here.
Submission of Planning Application
The first step is to submit the planning application. If the Local Planning Authority (LPA) has a CIL Policy in place, you should also submit ‘Form 1: CIL Additional Information’ along with the necessary drawings and documents that relate to your project. Failure to submit ‘Form 1’ will delay your application being validated by the LPA. However, if you intend to develop through general consent i.e. permitted development, you will need to complete ‘Form 5: Notice of Chargeable Development’. Normal CIL charging criteria will therefore apply in determining the CIL charge.
Assumption of Liability
You will need to tell your Local Planning Authority who is responsible for paying the CIL charge – also known as the ‘Assumption of Liability’. This can be done by completing and submitting ‘Form 2: Assumption of Liability’.
Generally, the landowner will be expected to pay the CIL charge but sometimes someone else will pay or several parties may pay shares. Completing the form will notify the collecting authority of who is responsible. It's recommended that you complete this form when you first apply for planning permission. If no one assumes liability it defaults to the landowner. If the council needs to find the owner or work out who needs to pay they can add a surcharge to the CIL fee.
If at any time you wish to withdraw or transfer liability of the charge, then you will need to complete and submit one of the following forms to the council:
Form 3: Withdrawal of Assumption of Liability
Form 4: Transfer of Liability
Once work has started on site you cannot withdraw liability from the CIL charge, instead it is only possible to transfer the liability. You can do this at any point up to when the final payment of the CIL is due.
Exemptions and Relief
The collecting authority will not automatically apply an exemption or relief to your CIL charge. The best time to apply for this is after receiving a liability notice but before work commences. If your development might be eligible, an owner of a material interest in the relevant land must state this before work starts. To apply for an exemption or relief, you will need to use forms which can all be accessed from the Planning Portal website. It’s worth noting that if you have been given an exemption or relief from the CIL charge you cannot transfer this to the new person.
Following the grant of planning permission, the LPA will issue a ‘Liability Notice’ that outlines how much you will need to pay including any exemption or relief if you have been granted them. A new liability notice is issued if something changes i.e. who is liable, there’s been an appeal, a surcharge has been added or an exemption/relief has been added.
After your liability notice has arrived and you have applied for any exemptions or reliefs you are ready to submit Form 6: A commencement notice to your LPA. The latest this can be done is one day before you start work.
Failure to submit the ‘Commencement Notice’ will result in the LPA applying a surcharge to the CIL fee. Further to this, if a ‘Commencement Notice’ isn’t submitted before you start work, any relief or exemption you have been granted will be removed and you will immediately be liable for the full CIL charge.
Once the ‘Commencement Notice’ has been received by the Collecting Authority, they will issue a ‘Demand Notice’. The notice will detail who is liable, the payment amount, any reliefs or surcharges and will also specify the dates on which payments are due. The ‘Demand Notice’ will also set out how to pay the CIL charge.
The main CIL exemption we deal with at Arkhi is the ‘Self Build – whole dwelling’. This exemption form is split into two parts: one form prior to any work on site commencing, and the second form 6 months after completion.Failure to submit the appropriate form and supporting evidence within 6 months of completion will result in the withdrawal of the exemption and payment in full of the liable amount. Equally, you must tell your Local Planning Authority about any disqualifying events which will be outlined in your exemption form.
How can ARKHI Help?
At Arkhi, we have trained professionals to advise and guide you every step of the way from feasibility studies to concept design and from Planning through to detailed design. If you would like to find out more or discuss your project with one of the Arkhi team, get in touch on 01260 540170 or drop us an email at email@example.com.