CIL can be a huge burden on self-builders and developers so it’s important to understand why it's in place, how it benefits the local area, and whether you’re exempt. When submitting a planning application you will also need to see if you have to pay Community Infrastructure Levy (CIL) to the Local Planning Authority (LPA). CIL is a charge a Local Authority can adopt after a public examination process. This charge can be imposed on new developments that create a net additional floor space of 100 sqm plus or alternatively create a new dwelling.
The purpose of this levy is to provide funding for improvements to the local infrastructure required to support the new development.
What Type of Development is Liable?
Development is liable for CIL in the following situations:
New dwellings
Development comprising of 100 sqm or more of new build floor space
Conversation of buildings that are no longer in lawful use
Development carried out under permitted development (‘General Consent’) is still liable for CIL if it meets any of the above criteria.
How is CIL Calculated and are there Exemptions?
Each LPA will publish their own charging schedule if they have a CIL policy in place so we’d advise you to check their website.
CIL is calculated on the net gain of floor space which means floor space that is to be demolished can be deducted from the CIL chargeable area. However, these areas can only be deducted if they have been in their lawful use for a continuous period of at least six months of the previous three years.
Depending on your development type you can apply for CIL relief or exemption on the CIL charge. There are three types of relief and four types of exemption. If your development fits any of the following it’s best to contact your LPA’s CIL Team to determine if you qualify.
There are three main types of relief:
Charitable relief (Form 10 and 12)
Social housing relief (Form 10 and 12)
Exceptional circumstances relief (Form 11)
There are also four types of exemption:
Self build – whole house (Form 7 - Part 1)
Self build – residential annex (Form 8)
Self build - residential extension (Form 9)
Minor development
When the LPA works out the CIL charge applicable to your development, an index of inflation is also applied to keep the levy responsive to the market conditions. This charge is calculated from the tender price Index published by the building cost information service and is reviewed annually.
How are CIL Collections Spent?
CIL collections are spent improving and investing in new infrastructure for the local community such as road networks, schools and public areas.
Local Authorities must spend the levy on infrastructure necessary to support the development in the area. This ensures each authority prioritize spending based on the individual needs of community areas.
Councils are required to publish their CIL collection and spends according to the CIL regulations. This will be done as part of its annual monitoring report. Each Local Authorities will publish their results so the best way to find specific information is to visit their website or talk to the CIL Team.
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 hi@arkhi.co.uk.