Think Tank Articles

CIL Article 02:
A Helpful Guide for Navigating the CIL Process

CIL - Community Infrastructure Levy

We know that CIL can be a difficult and confusing process, so we’ve created a generic step by step guide to help you navigate with ease.

 

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.

 

1. 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.

 

2. 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 people/parties may be paying shares. Completing the form will notify the collecting authority of who is responsible and its recommended that you complete this form when you first apply for planning permission.

But what happens if no one assumes liability? The owner of the land will automatically become responsible for the CIL. If the council needs to find the owner or work out who needs to pay (and what share), 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

However, 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.

 

3. Exemptions / Relief

The collecting authority will not automatically apply an exemption or relief to your CIL charge as this is something you will need to apply for. If you think you may be eligible, you can submit a form to state your eligibility for exemption from paying the CIL charge. In order to apply for relief, you must apply and receive a decision from the LPA before you start any work 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)

 

At this point, it’s best to contact your LPA’s CIL Team to discuss this further and clarify whether your development qualifies for relief. 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

 

To apply for an exemption or relief, you will need to use the correct 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. The new person would need to apply for the exemption, and this can only be done prior to any work starting on site as already mentioned.

4. Liability Notice

Following the grant of planning permission, the LPA will issue a ‘Liability Notice’. A liability Notice is a form produced by the council that outlines how much you will need to pay, and this will include any exemption or relief if you have been granted them.

If you haven’t already applied and you think you may be eligible, this is the time to apply for the exemption.

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.

 

5. Commencement Notice

It’s important that before you start any work on site you submit ‘Form 6: Commencement Notice’ to your LPA. The latest this can be done is one day before you start.

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.

6. Demand Notice

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.

 

7. Completion (Self-builders)

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 as this will affect your exemption/relief. Disqualifying evets will be outlined in your exemption form.

 

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 detail design / construction.