Think Tank Articles

CIL Article 01:
Community Infrastructure Levy (CIL): An Introduction

This the first in a series of articles focusing on CIL. Since being introduced, CIL has caused confusion amongst those who find themselves dealing with the various legislations, criterias, exemptions and numerous forms to fill.

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.

 

What is CIL?

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 LPA can adopt after a full consultation and public examination process.

Community Infrastructure Levy (CIL) is a charge which can be imposed on new development that creates a net additional floorspace 100sqm plus or alternatively creates a new dwelling.

The Levy is an important charge that enables Local Authorities to fund, improve and deliver vital pieces of infrastructure in their area. This supports development taking place in the local vicinity.

Development Site

What type of development is liable for CIL?

Development is liable for CIL in the following situations:

  • New dwellings
  • Development (including residential extensions) comprising of 100sqm or more of new build floorspace
  • 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 charged and calculated and are there exemptions?

Each LPA will publish their own charging schedule if they have a CIL policy in place.

CIL as a charge is calculated on the net gain of floorspace which means floorspace 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.

A charging schedule will be specific to each LPA, so we’d advise you find this from their website.

Arkhi Architects New Build Dwelling

Depending on your development type and your unique position, you can apply for CIL relief or an exemption on the CIL charge.

 

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

 

When the Local Planning Authority (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 allows each Authority to decide and prioritise spending based in the individual needs of community areas.

So, how is CIL monitored? 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 detail design / construction.