Community Infrastructure Levy

Is My Development Liable?

What is CIL?

It's a non-negotiable financial levy we can charge on new floor space to help deliver infrastructure to support development in their area. CIL is levied on each square metre of new floorspace and is measured by the gross internal area (GIA).

What is Maidstone's CIL charges?

Rates are applied depending on the planning use and the location of the development. CIL rates are based on financial viability and have been tested at an independent examination as part of the Charging Schedule setting exercise.

Maidstone's approved charges from 1 October 2018

These will change annually in line with indexation. For more information on indexation please see Regulation 6 legislation.

1. Charges for retirement and extra care housing will apply to relevant, liable  development within Use Class C3 as defined by the Town and Country Planning(Use Classes) Order 1987 (as amended).

   Relevant, liable development is:

   1. Retirement housing, which is defined as proposals, within Use Class C3, for groups of dwellings that provide independent, self-contained homes, specifically for older people, usually with some element of communal facilities
   2. Extra care housing, which is defined as proposals for dwellings that provide independent, self-contained homes, specifically for older people, with access to 24 hour care and support

   Charges for retirement and extra care housing do not apply to proposals for care homes and nursing homes, or any other uses falling within Use Class C2 or C2a as defined by the Town and Country Planning (Use Classes) Order 1987 (as amended).

2. The application of charges for retail development will have regard to the principal retail use – be that convenience or comparison – to determine the rate to be applied across all liable retail floorspace. The principal retail use is defined  as that which occupies more than 50% of the liable retail floorspace and is reflected in table as “wholly or mainly”. Charges for comparison retail also vary depending on the location of development: development located outside of the Town Centre Boundary will attract a charge, whilst development within the Town Centre Boundary will not.

Figures 2 and 2a at Appendix A of the Charging Schedule show the boundaries applicable to comparison retail development.

When did Maidstone start charging CIL?

From Monday 1 October 2018 on all decisions made on and from that date

Which developments are CIL liable in Maidstone?

Any planning decision, including those made on appeal, determined on or after 1 October 2018 may be liable for CIL. The relevant date is the date application is determined, not when it was submitted.

CIL in Maidstone Borough is liable on:

• New build residential floor space of more than 100 square metre including retirement and extra care homes, measured by gross internal area (GIA)
• The creation of a new dwelling even if less than 100 square metre
• The conversion of a building to residential that is no longer in lawful use
• The creation of more than 100 square metre of new build floor space for retail development

CIL is applicable on all such buildings regardless of the type of planning permission used to grant permission. CIL charges are applicable where planning permission is granted by way of permitted development when a certificate of lawfulness is issued, and prior notification. Generally, any structure with 3 or more walls and a roof is considered to have ‘internal’ floor space and is therefore chargeable.

A change of use of a building that has not been in its lawful use for more than 6 continuous months in the previous 3 years from the date planning permission is first granted is CIL liable. However, the gross internal floor space of any existing buildings on the site that are going to be demolished or reused which have been in their lawful use, may be deducted from the calculation of the CIL liability.

A change of use of floor space where a self-contained residential unit will be formed is also chargeable if the existing continuous use claim (above) cannot be demonstrated.

New development, including extensions, annexes and self build homes will be liable but may be eligible for exemption.

Are Lawful Development Certificates CIL liable?

If the application is for something that's already been built before 1 October 2018 and is successfully given a lawful development certificate, then this won't be CIL liable. If it's refused, you'll need to apply for retrospective planning permission and submit Form 1: Additional Information form from the Portal. It will then be assessed as if the development hadn't been built.

If the application is to confirm something that meets the CIL criteria and was completed after 1 October 2018, and the use falls within MBC’s CIL Charging Schedule, it will be CIL liable and payment will be due immediately. There would be no 60-day window to pay as it would have ‘commenced’ without a commencement notice. The regulations also state that no exemptions would be allowed.

If the application is for something proposed for the future you can apply for a Lawful Development Certificate. If it's for development which meets the Charging Schedule criteria it'll be CIL liable and you are required to pay before commencement. See Permitted Development below.

If you choose to apply for a Lawful Development Certificate then applicants are required to submit a Form 1 – Additional Information form with their submission. If the development is liable you should also submit Form 2- Assumption of Liability at the same time. We'll then issue a liability notice.

Is permitted development CIL liable?

Permitted Development (development that doesn't require planning permission from us) may be CIL liable if it's over 100 square metre. If you intend to commence development under General Consent you must submit a CIL Form 5 - Notice of Chargeable development to us before the development has started. The CIL charge will then be calculated and applied as though we've granted planning permission. Whilst the development may be CIL liable because of its size, it may also be eligible for an exemption.

Are prior notifications CIL liable?

If the Prior Notification application is for approval for the conversion or change of use of a building into a self-contained residential dwelling(s), CIL will be chargeable on the new dwellings. On approval of the Prior Notification, you must submit to us Form 5 – Notice of Chargeable Development before you start development. If you can demonstrate evidence as requested on Form 5 that the building has been in its lawful use (ie its planning use as an agricultural building used for agricultural purposes or a stable for stabling horses) for a continuous period of 6 months in the last 3 years ending on the date of the prior notification approval, then the existing floor space in its lawful use which will be retained or demolished will be deducted from the CIL charge. New floor space added to the new dwelling however will be chargeable. You may be eligible for relief or exemption from CIL, but you must apply for it before starting any work on the development.

Relief and exemptions

Possible exemptions include:

• Social housing
• Charitable development provided by a charity for charitable purposes
• Self build developments
• Residential annexes
• Residential extensions over 100 square metre

These types of development are CIL liable but may be eligible for relief or exemption. You must apply for the relief or exemption before starting work on the development. If you've already started work on the development you won't be entitled to either and will have to pay the full CIL amount.

Self builds

The exemption for self build is only applicable to whole new homes built, or commissioned by individuals for their own use. A conversion or change of use of an existing building to residential will not qualify for self-build exemption. The person building the home must complete an additional form within 6 months of completion and reside in the house, as their main residence for at least 3 years. If you build more than one house, you'll only be entitled to claim the self build exemption on the house you solely reside in. Community group self build projects also qualify for the exemption where they meet the required criteria. The CIL liability will be calculated by us and recorded in case there's a disqualifying event in the future and the CIL payment becomes due.

Does the Council offer exemptions for multiple self-build/custom build developments?

For multi-unit schemes (for example, where a builder sells serviced plots, or a community group works with a developer), where applicants want to be exempt from paying CIL, the applicant/developer would have to apply for a phased planning permission, to allow each plot to be a separate chargeable development where each self builder can apply individually for an exemption for their plot.

For further information please see the Government's Guidance pages on CIL.

WARNING- If your Liability Notice was issued on or before 1st September 2019 and a valid Commencement Notice is not submitted to the Council prior to the development commencing, your exemption or relief will be withdrawn OR if your Liability Notice was issued after this date and a valid Commencement Notice is not submitted to the Council prior to the development commencing, the penalty for a late Commencement Notice will be reduced from the removal of the exemption or relief to a surcharge equal to 20% of the chargeable amount or £2500 whichever is the lower amount. For more information visit the relief and exemption pages on the planning portal.

What is not liable for CIL?

• Development, for example an extension to an existing dwelling where the gross internal area of the new build floorspace is less than 100 square metre. This doesn't apply to the creation of one or more dwellings
• Applications which involve only a change of use, conversion or subdivision of, or creation of mezzanine floors within a building which has been in lawful use for at least six months in the 3 years prior to the development being permitted and doesn't create any new build floorspace
• Any structure which doesn't have a roof and has less than three walls such as an open balcony and open fire escapes
• A building into which people don't normally go, or go only intermittently for the purpose of inspecting or maintaining fixed plant or machinery
• Structures which are not a building, such as pylons or wind turbines
• Temporary consents and temporary structures aren't CIL liable. These include mobile homes and caravans, and any ancillary buildings required to support them like day rooms

What is not chargeable for CIL?

• Development which benefits from a zero or nil charge (£0/m2) as set out in our Maidstone's CIL Charging Schedule
• Applications which are determined and planning approval  given before to 1 October 2018
• Reserved matters applications resulting from an outline planning permission that's been granted before CIL was introduced on the 1 October 2018, are not liable for CIL
• Any development where the total chargeable amount is less than £50 deemed as zero rated

Who's liable to pay the levy?

The responsibility to pay the levy rests ultimately with the landowner where the liable development will be situated. Although liability rests with the landowner, the regulations recognise that others involved in a development may wish to pay. To allow this, anyone can come forward and assume liability for the development. However, if no one comes forward it will default to the landowner. We'll send the liability notice to all interested parties.

Unsure if your development is liable or not?

We offer a pre application service which can include advice regarding CIL. We'll assess your proposal and give advice on any potential CIL liability. For more information visit our pre-application page.

For further information about CIL email us.

The CIL Process

The Government has clearly set out the process in the CIL Regulations 2010 as amended, so it is important that this is followed. The process that needs to be followed is summarised below:

1. Applicant informs the Council of proposed development

The Council requires all planning applications to be submitted with an accompanying Form 1: Additional Information form and from March 2021, also a Form 2: Assumption of Liability. Failure to complete and submit these with the planning application will result in the application not being validated. Forms should be submitted via the planning portal with your application.

Form 1; asks for details of the new floorspace to be created by the development and details of any floorspace to be demolished or retained which can be offset against the new floorspace calculation.

Any changes to details supplied on this form (i.e. change of address, email address, phone number etc.) need to be submitted before the development is commenced, again using the form below on the Planning Portal.

Form 1 – Additional Information

View guidance on completing Form 1 - Additional Information

Form 2; All planning applications that are CIL liable will need to have someone assuming liability for payment. They don't have to own or have a material interest in the land. To assist the Council in the CIL collection process, liable parties are required to submit a signed Form 2  with the Form 1, in order that the liable person can be issued with a liability notice by the Council as soon as practicable after the planning decision has been issued.

Form 2 – Assumption of liability

Form 3 and 4; If at any time during the process and before the commencement of the development, you wish to withdraw or transfer liability for the charge (i.e. if you sell the site) then you need to complete and submit to the Council either:

Form 3 - Withdrawal of Assumption of Liability or Form 4 - Transfer of Assumed Liability

Form 5; CIL is liable on any planning permission we grant, on Permitted Development, Prior Notification applications which are creating a new dwelling with the Councils approval and applications for lawfulness (Lawful Development Certificates). In these cases, it'll be your responsibility to inform us, using Form 5 – Notice of Chargeable Development before work begins. This form should be used by landowners to notify us of further information relating to the development and to assume liability to pay any CIL due.

Failure to inform us could result in enforcement action being taken and the full CIL liability being payable.

Form 5 – Notice of Chargeable Development

2. We confirm receipt of the additional information form and assumption of liability form and (if applicable) notice of chargeable development (we may request further information where needed)

3. Our Development Management team will assess the application

During the planning assessment, the floor area may change, in these circumstances a revised Form 1 - Additional Information form should be sent us to reflect these changes and the revised CIL liability. Failure to do so may result in the wrong CIL charge being levied.

If at any time during the process and before the commencement of the development, you wish to withdraw or transfer liability for the charge (i.e. if you sell the site) then you need to complete and submit to the Council either a Form 3 Withdrawal of Assumption of Liability or Form 4 Transfer of Assumed Liability.

4. Council issue a Liability Notice

Once liability has been assumed and as soon is practicable after planning permission is granted, we'll issue a Liability Notice to all  parties who have assumed liability. The Liability Notice sets out the amount of CIL that is levied on the development. If any changes occur after the Liability Notice is issued, a revised notice will be sent out that will supersede the previous notice. The Liability Notice is a registered local land charge and will be added to the land charges register until full payment has been received or (where relevant) the disqualifying period has expired.

5. Appeal

If you are not satisfied the Liability Notice is correct you can apply for a review. This must be made in writing to the Council within 28 days of the issue of the Liability Notice. Only one review is allowed (see appealing CIL).

6. Claiming relief before starting the work

Relief and exemptions from CIL may be available, but must be applied for before starting any work on the development.

Exemptions available include:

• Social housing developments (Form 10)
• Charitable developments provided by a charity for charitable purposes (Form 10)
• Self-build developments (Forms 7 (1) and (2))
• Residential annexes (Form 8)
• Residential extensions over 100 square metre (Form 9)

Form 7 - Self Build Exemption Claim Form Part 1 

Form 7 - Self Build Exemption Claim Form Part 2

Form 8 - Self Build Residential Annex exemption Claim Form 

Form 9 - Self Build residential extension exemption Claim Form

Form 10 - Charitable and/or Social Housing Relief Claim Form

Warning: Relief is not automatically available; it must be applied for prior to commencement of development or CIL will be chargeable. Development will cease to be eligible for the exemption if a valid Commencement Notice is not submitted to the Council prior to the development commencing.

The completed form must be submitted to the Council prior to the commencement of development in order to obtain relief or exemption. The Council can not process requests for relief or exemption retrospectively.

The Council will provide a written response to whether the development is exempt and eligible for relief or exemption.

All granted relief or exemptions cease to be eligible for the relief or exemption if a commencement notice is not submitted prior to the development commencing.

If any relief or exemption is granted, where relevant, a revised Liability Notice will be sent out to reflect any changes as a result of the relief or exemption. This will supersede any previous notice sent.

Prior to the granting of any form of relief or exemption the Council will be required to take State Aid Regulations into consideration as this may affect the relief that is available to the applicant. For more information on State Aid visit GOV.UK

Relief or exemptions will be withdrawn where a disqualifying event occurs.

7. We'll confirm that relief or an exemption has been approved

It's crucial that approval is given before work starts on the development. If you do any work on the development before receiving written confirmation from us, any relief or exemptions will be cancelled and you'll have to pay the full CIL amount immediately. There may be additional penalties and surcharges levied for failure to correctly follow the CIL process.

We'll register the relief or exemption on the local land charges register.

8. Informing the Council of Commencement

The Regulations require the submission of a Commencement Notice by the liable party, informing the Council of the intended start date. This must be received by the Council no later than the day before development commences.  If you commence development before submitting the Commencement Notice, any relief or exemption that has been granted will be cancelled and the full CIL liability will become payable immediately. There may also be additional penalties and surcharges.

Form 6 – Commencement Notice

9. Council confirm receipt of Commencement Notice and issue a Demand Notice

Once the Commencement Notice has been received, the Council will confirm receipt and issue a Demand Notice. This notice will detail who is liable and for how much. It will also specify how to pay and the dates on which the payments are due, in line with the CIL Regulations 2010 (as amended) Part 8 Section 70 and the Council’s Instalment policy, whichever is relevant.

10. Applicant pays the CIL amount specified  in the demand notice

Ideally this should be online Pay CIL. NB always quote the given reference number from the Demand Notice.

11. Payment  received by the Council

The Council will acknowledge in writing when the payment has been received.

12. Payment not received

The process and format of the forms is prescribed by the Community Infrastructure Levy Regulations 2010 (as amended), and there are surcharges and penalties if these are not strictly followed and ultimately enforcement action will follow.

13. Disqualifying events

The CIL Regulations set out the disqualifying events for each type of relief or exemption. An example of a disqualifying event for self-build exemption or affordable housing relief would be if the dwelling was sold on the open market and no longer used for the purpose for which the relief was granted. For self-build exemption and residential annex exemption, the clawback period is 3 years; for charitable relief and social housing relief the clawback period is 7 years. There is no clawback period for residential extension exemption.  In instances of a disqualifying event arising the full amount of CIL will become liable to be paid and additional penalties and surcharges may be levied.

14. Monitoring

The CIL regulations require the Council to report on CIL collection and spend. The Council will publish this on the Councils CIL webpages by 31 December following the relevant financial year end.

For further information please contact us.

Calculating CIL

How is CIL calculated?

CIL is calculated using the CIL formula, indexation, Maidstone’s charging schedule and any exemptions or relief granted.

The amount of CIL payable will depend  on the size, type and use of the  development site.  This information must be provided as part of the planning application. It is in your interest to submit this form, even if you believe you are not liable, so that the Council can determine whether the development is CIL chargeable and ensure that the CIL charge is calculated accurately as failure to provide this information will mean that the Council will not validate the application. All plans will be checked when submitted.

CIL is calculated using the Gross Internal Area (GIA) of new  floor space  of  development. The floor space is then multiplied by the charge for that use type.  Where there are a number of use types proposed within a development, the floor space will be split accordingly by type and then multiplied by the relevant charges.

What is the definition of Gross Internal Area (GIA)?

Gross Internal Area (GIA) measures the internal area of each floor of the building, including circulation and service space such as corridors and includes areas such as storage rooms, toilets, lifts etc. These types of internal communal areas are also included in the calculation as part of the chargeable development, Generally, any structure with 3 or more walls and a roof is considered to be ‘internal’ floor space and therefore chargeable. Gross Internal Area (GIA) is set out in the Code of Measuring Practice produced by the Royal Institute of Chartered Surveyors (RICS).

Can existing uses on the site be deducted from the calculation?

Yes. The gross internal floor space of any existing buildings on the site that are going to be demolished, retained or reused may be deducted from the calculation of the CIL liability. The charge will be based on the floorspace of the new buildings less the floorspace of the demolished or retained buildings, i.e. the net increase in floorspace. However, these deductions only apply where the demolition or retention relates to a building which has been in its continuous lawful use for at least six months in the last three years, prior to when planning permission is granted. The building must also have been in situ at the time.

Where only a small part of the planning unit to be demolished or retained has been in use for over six months in the last three years prior to the development being permitted, ALL  the floorspace in the building would be deductible from the floorspace of the new buildings.

Applicants must declare on their Form 1 - additional information form submitted with their planning application the amount of floorspace to be demolished and/or retained and what it was used for during the appropriate period. If this is not declared, the Council will assume that any existing buildings on the site are not eligible and will not deduct it from the CIL calculation.

CIL formula

The calculation of the CIL chargeable amount is defined by the CIL Regulations:

R x A x IP
IC

Where:
R = the levy rate as set in the Maidstone Charging Schedule.  
A = the net area of floor space chargeable in square metres after deducting any existing floor space and any demolitions, where appropriate.
I_P = the index figure for the year in which planning permission was granted
I_C= the index figure for the year in which the charging schedule took effect (2018)

The value of A must be calculated by applying the following formula:

Regulation 40 (calculation of chargeable amount) paragraph (6) of the 2010 regulations has been substituted with -

(6) The value of A in paragraph (5) must be calculated by applying the following formula:

GR – KR – (GR x E)
G

Where:

G = the gross internal area of the chargeable development;
G_R = the gross internal area of the part of the development chargeable at rate R;
E = an amount equal to the aggregate of the gross internal areas of all buildings which—
a) on the day planning permission first permits the chargeable development, are situated on the relevant land and in lawful use; and
(b) are to be demolished before completion of the chargeable development; and

K_R = an amount equal to the aggregate of the gross internal area of all buildings (excluding any new build) on completion of the chargeable development which—
a) on the day planning permission first permits the chargeable development, are situated on the relevant land and in lawful use;
b) will be part of the chargeable development upon completion; and
c) will be chargeable at rate R.

What is Index linked?

CIL calculations must include an index rate, as set out in the CIL regulations, in line with the All-in Tender Price Index of construction costs (provided by the BCIS). CIL rates are index linked to track building cost inflation, and reflect changes in the cost of delivering infrastructure. The indexation is calculated to track the change between the rate at the point CIL was introduced, and the rate at the point a planning permission is granted.

Indexation is for the calendar year from 1st January to end of December. Maidstone's charging schedule ‘takes effect’ from 1st October 2018 so for the period of October through to the end of December 2018 the CIL levy will be as per the agreed charging schedule. Indexation will be added from 1 January 2019 and each subsequent year in the future, the index may increase or decrease. MBC will publish each year the RICS CIL Index figure it will be using for indexation, this will be based on the figure published by RICS on the 4th Monday in October of the preceding year.

What are the CIL charges?

Rates are applied depending on the planning use, and the location of the development. CIL rates are based on financial viability. Types of development that are less viable will have a nil charge.

Maidstone’s approved charges from 1st October 2018.

These will change annually based in line with indexation

What is ‘continuous’ lawful use?

In planning, lawful use is strictly defined, and generally means an existing building or use that has planning permission or where it has been in existence for a sufficient period that enforcement action against it cannot be taken. If you have any concerns about whether your property is in lawful use, contact the planning department for advice. It will be for the applicant or their agent to demonstrate lawful use by providing appropriate evidence.

What evidence of lawful use is required?

If the existing / former use was a business, then evidence may include records from business rates, licensing, bank statements etc.  If it was a residential use, then evidence may include council tax records and utility bills. Evidence must show lawful use for the time period required.

Do I need to submit forms if I am entitled to relief or an exemption?

Yes. The Regulations provide exemptions from CIL in the following circumstances:-

• Self-build developments Form 7 (part 1) and (part 2)
• Residential annexes Form 8
• Residential extensions over 100 square metre Form 9
• Social housing developments Form 10
• Charitable development provided by a charity for charitable purposes Form 10

These types of development are CIL liable but may be eligible for relief or exemption but this must be applied for and granted by the Council. Under government legislation, failure to gain approval for an exemption or relief prior to commencement will result in no exemption or relief being possible and the full CIL payment becoming payable.  NB The exemption for self build is only applicable to homes built or commissioned by individuals for their own use. Community group self build projects also qualify for the exemption where they meet the required criteria. The CIL liability will be calculated by Maidstone and recorded as a local land charge in case there is a disqualifying event in the future and the CIL payment becomes payable.

For further information please contact us.

CIL Forms

The process and format of the CIL forms is prescribed by the Community Infrastructure Levy Regulations 2010 (as amended) and all forms are available on the planning portal. If the CIL process is not strictly followed the Council may add surcharges and penalties.

Form 1 – CIL Additional Information Form

This form must be submitted with the planning application and will be used to identify whether the application is liable to pay CIL. It asks for details of new floorspace to be created by the development and details of any floorspace to be demolished and/or retained, which can be offset against the new floorspace calculation.

This should be submitted with ALL applications for full planning permission, including householder applications and reserved matters following an outline planning permission, and applications for lawful development certificates. Failure to submit this form will make the application invalid.

Download CIL Additional Information Form

Form 2 - Assumption of Liability Form

This form must be submitted with the planning application. It is required to confirm who will be responsible or liable to pay CIL. The Council will acknowledge receipt of this form and issue a Liability Notice. The Liability Notice will be sent to the person/s assuming liability for the CIL payment and also to any other interested parties. This notice sets out the amount liable but will not be due for payment at this stage.

Download Assumption of Liability Form

Form 3 – Withdrawal of Assumption of Liability

This form should be used if, at any stage prior to the commencement of development, the person who has assumed liability wishes to withdraw from this liability.

Download Withdrawal of Assumption of Liability Form

Form 4 – Transfer of Assumed Liability

This form should be used if, at any stage prior to the commencement of development, the person who has assumed liability wishes to transfer this liability to another person, and this second person is agreeable to assuming liability.

Download Transfer of Assumed Liability Form

Form 5 – Notice of Chargeable Development

In some cases, CIL liable proposals can be commenced via ‘General Consent’ (i.e. Permitted Development) or by approval of a Lawful Development Certificate and Prior Notification. In these cases, it will be the applicant’s responsibility to inform the Council using Form 5 prior to the commencement of development. Failure to submit this form prior to commencement will mean that an exemption will not be possible if the development is chargeable and the full amount of CIL and the full amount of CIL will be charged to become payable with possible surcharges incurred for commencing without submitting a valid commencement notice.

Download Notice of Chargeable Development Form

Form 6 – Commencement Notice

This form must be sent by the applicant to the Council at least one day prior to commencement of development on site. The Council will acknowledge receipt of this notice and will then issue a Demand Notice in accordance with the Councils instalments policy if appropriate.

Download Commencement Notice Form

Form 7 -  Self Build Exemption Claim Form: Part 1

The exemption for self build is only applicable to whole new homes built, or commissioned by individuals for their own use. A conversion or change of use of an existing building to residential will not qualify for self-build exemption.

To be granted a Self Build exemption, the applicant will have to complete two forms. Form 7 Part 1 should be submitted if the applicant is building their own house and they will own a material interest in the house and will occupy it as their principal residence for a minimum of 3 years after the work is completed.  It should ideally be submitted to the Council at the same time as Form 1, but it can be submitted at any point in the planning assessment process. The Council will then assess the exemption claim. In order to qualify for relief, the applicant must not commence development prior to the Council confirming in writing its decision to grant relief. Should development commence prior to the Council making a decision, exemption will no longer be possible.

Download Self Build Exemption Claim Form - Part 1

Form 7 - Self Build Exemption Claim Form: Part 2

Within six months of completing the self-build dwelling where the Council has granted self-build exemption(see above Form 7 : Part 1), the recipient of the exemption must complete and submit Form 7 part 2, to the Council, together with the evidence detailed in the form. The self build unit will only be exempt when both parts 1 and 2 have been approved in writing by us.

Failure to provide Part 2 of the Self Build claim form within the stated 6 months from the date of the building compliance certificate, will result in the exemption being withdrawn and the full CIL liability will automatically become due for immediate payment to the Council.

The house must be used as the applicant’s main residence, failure to abide by this will result in a disqualifying event.  An example of a disqualifying event for relief would be if the dwelling/ building was sold on the open market and no longer used for the purpose for which the relief was granted. For self build exemption, the clawback period is 3 years starting from the date of the building completion certificate.

Download Self Build Exemption Claim Form - Part 2

Form 8 - Self Build Annex Exemption

This form should be submitted if the applicant believes that their development should be eligible to claim an exemption. It should ideally be submitted to the Council at the same time as Form 2.  In order to qualify for an exemption, the applicant must not commence development prior to the Council making a decision to grant an exemption. Should development commence prior to the Council issuing  a decision in writing, an exemption  will no longer be possible.

The Council will write to confirm whether an exemption has been granted. There are specific requirements which must be adhered to, to avoid the exemption granted being withdrawn as a result of a disqualifying event.  An example of a disqualifying event for an exemption would be if the dwelling/building was sold on the open market and no longer used for the purpose for which the exemption was granted. For residential annex exemption the clawback period is 3 years.

Download Self Build Annex Exemption Form

Form 9 - Extension Exemption Claim Form

This form should be submitted if the applicant believes that their development should be eligible to claim an exemption. In order to qualify for an exemption, the applicant must not commence development prior to the Council making a decision to grant an exemption. Should development commence prior to the Council issuing a decision in writing, the exemption will no longer be possible.

NB: A commencement notice is not required for householder residential extensions.

Download Extension Claim Form

Form 10 - Claiming Charitable and/or Social Housing Relief

This form should be submitted if the applicant believes that their development is eligible to claim relief. It should ideally be submitted to the Council as soon as the qualifying housing scheme. In order to qualify for relief, the applicant must not commence development prior to the Council making a decision to grant relief. Should development commence prior to the Council making a decision, relief will no longer be possible.

The Council will write to confirm whether relief has been granted. There are specific requirements which must be adhered to avoid the relief being withdrawn as a result of a disqualifying event. An example of a disqualifying event for relief would be if the dwelling or building was sold on the open market and no longer used for the purpose for which the relief was granted. For charitable or social housing relief the clawback period is 7 years.

Further Charitable or Social Housing Relief Form

Form 12 - Claiming further charitable or social housing relief (when development is altered)

This form should be used by persons seeking to obtain further charitable or social housing relief from the levy when the development previously subject to relief is subsequently amended by a section 73 permission, creating a new levy liability.

Further Charitable or Social Housing Relief (when altered) Form

Form 13 - Claiming further self-build dwelling, residential annex or residential extension exemption

This form should be used by persons seeking to obtain further exemption from the levy when the development previously granted an exemption is subsequently amended by a section 73 permission, creating a new levy liability.

Further self-build dwelling, residential annex or residential extension exemption Form

Reliefs and Exemptions

What are reliefs and exemptions?

The Community Infrastructure Levy Regulations make a number of provisions for Councils to give relief and exemptions from the levy. Some types of relief and exemptions are compulsory and set out in the CIL regulations; others are offered at the Councils discretion.

NB: Maidstone Council does not offer discretionary relief or exceptional circumstances relief for charitable and social housing relief

‘Community Infrastructure Levy relief’ means any exemption or reduction in liability to pay the levy. It can only be offered to people who are considered to be an ‘owner of a material interest in the relevant land’.

What is a material interest?

A ‘material interest’ is a freehold interest or a leasehold interest, the term of which expires more than 7 years after the date on which planning permission is granted.

What relief and exemptions are available?

The Regulations provide possible relief and exemptions from CIL in the following circumstances:

• Self-build developments. Apply using Form 7 Part 1 and Part 2
• Residential annexes. Apply using Form 8
• Residential extensions over 100 square metre. Apply using Form 9
• Social housing developments. Apply using Form 10
• Charitable developments provided by a charity for charitable purposes. Apply using Form 10

These types of development are CIL liable but may be eligible for relief or exemption which must be applied for and granted in writing by the Council before commencement. Under government legislation, failure to gain approval for relief or an exemption prior to commencement will result in no relief or exemption being possible and the full CIL payment becoming payable. When a relief or an exemption has been granted it will be recorded on the local land charges register and will remain on there in case a disqualifying event takes place. Once the disqualifying event time period has elapsed it will be removed.

Does MBC offer Discretionary Relief?

No. Whilst the regulations provide that most types of relief are compulsory; others are offered at the charging authority’s discretion. Maidstone Council has chosen not to offer relief for affordable housing types which do not meet the criteria required for mandatory social housing relief and are not regulated through the National Rent Regime. Neither does it offer discretionary relief for charitable development where the greater part of the chargeable development will be held as an investment, from which the profits are applied for charitable purposes.

Does MBC offer Exceptional Circumstances Relief?

No. The regulations provide that charging authorities may offer relief from the levy in exceptional circumstances where a specific scheme cannot afford to pay the levy.

In July 2015, the Council undertook a study to consider the viability and deliverability of the Local Plan as a whole and assessed the viability of development allocations to inform the setting of CIL charging rates. The evidence concluded that the overall quantum of development planned in the Maidstone Borough Local Plan could sustain a CIL charge without affecting the overall viability of development within the Borough.

Community Infrastructure Levy Charging Schedule

In light of the viability evidence, and given the very rare circumstances in which relevant criteria would be satisfied, the Council chose not to introduce an exceptional circumstance's relief policy.

What is a disqualifying event?

A disqualifying event is measured by a period in which the development ceases to qualify for a relief or exemption. If this occurs, for example if the chargeable development with a relief or exemption granted is sold within a certain period after the grant, then the full amount of CIL that should have been paid will become due and will be claimed back from the person who has signed the Assumption of Liability Form 1. This process is often referred to as ‘clawback’. If a ‘disqualifying event’ defined in regulation 48 takes place, the relevant person must notify the Council within 14 days.

What are the clawback timescales for each relief and exemption?

Who is eligible for social housing relief?

100% Social Housing relief is available to those parts of development which are intended to be used as social housing. The claimant must own the relevant land and assume liability. Charitable private registered providers alongside other providers set out in regulation 49 will be eligible for this reduction as well as private registered providers as defined in the Housing and Regeneration Act 2008 as amended. Social Housing relief may also be available to parties that are not charities. See further details on Social Housing Relief and Reliefs and Exemptions.

Who is eligible for charitable relief?

To qualify for any charitable relief, the following criteria must be fulfilled:

• The claimant must be a charitable institution
• The claimant must own a material interest in the relevant land and
• The claimant must not own this interest jointly with a person who is not a charitable institution

Charitable relief will only apply to ‘charitable institutions’. This is defined in Regulation 41 as either:

• A charity defined as “any person or trust established for charitable purposes only” – for a definition of ‘charitable purposes’, see section 2 of the Charities Act 2011
• A trust of which all the beneficiaries are charities or
• A unit trust scheme in which all the unit holders are charities

More detailed information on charitable purposes can be found on the Charity Commission website.

In practice there are 3 main groups of charities which may benefit from relief:

• Registered charities: charities which are registered with the Charity Commission
• Exempt charities: charities which cannot register under the Charities Act 2011 and are not subject to the Charity Commission’s supervisory powers. They are listed in Schedule 3 of the 2011 Charities Act and include some educational institutions, and most universities and national museums
• Excepted charities: charities excepted from the need to register but which are still supervised by the Charity Commission.

EU charities are treated in the same way as UK charities for the purposes of charitable relief, any decision on the eligibility of a non-UK charity must be made on the merit of the charitable purpose and will be at the discretion of the Council.  The Claiming Exemption and Relief form 10 requires the claimant to demonstrate what its charitable purposes are, for example through production of its constitution or articles of association.

Relief is not limited to only one charitable institution per development site. Where charitable relief conditions are met, every charitable institution owning a material interest in the relevant land can benefit from relief from their portion of the charge.

The eligible development must be used ‘wholly, or mainly, for charitable purposes’ and meet the requirements of Regulation 43. NB. There is no discretionary relief available where the greater part of the chargeable development will be held as an investment.

Who is eligible for a Self-build exemption?

If you decide to build your own house and you will own a material interest in the house and you will occupy it as your principal residence for a minimum of 3 years after the work is completed, then you can apply for a self build exemption. NB you don’t have to actually build the house but you do have to commission the work. To claim the exemption there are two forms which must be completed, one before commencement and one 6 months after completion. The CIL charge will be recorded on the land registry in case a disqualifying event takes place such as the house not being used by the applicant as their principal residence for the 3 years after completion.

Self Build means all homes built or commissioned by individuals or groups of individuals for their own use Community group self build projects will also qualify for the exemption where they meet the required criteria of owning a material interest, are part of the commissioning of the self build and will occupy the dwelling as their main or sole residence.

The exemption for self build is only applicable to whole new homes built, or commissioned by individuals for their own use. A conversion or change of use of an existing building to residential will not qualify for self-build exemption.

Who is eligible for a residential annex exemption?

A residential annex is CIL liable but you can apply for an exemption if you own a material interest in the house, that the annex will be associated with. You must live in the house as your sole or main residence and the annex must be located wholly within the land attached the house. There is no requirement for the occupier of the annex to be related to the owner of the main dwelling, or to commit to staying there for a specified period. Annex exemptions will be registered on the land registry for 3 years from completion in case of a disqualifying event taking place.

Residential annexes disqualifying events are;

• The main house is used for any purpose other than a single house
• The annex is let
• The sale of the house or annex unless they are sold at the same time to the same person.

Who is eligible for a household extension exemption?

If your household extension has new floor space  over 100 square metre it will be CIL liable. Development over this size, can be made exempt if you own a material interest in the house to be extended and you live in the house to be extended as your sole or main residence. NB There is no disqualifying event for a residential extension.

Warning: Relief is not automatically available; it must be applied for prior to commencement of development. There are strict processes to follow regarding exemptions and relief. For more information visit the relief and exemption pages on the planning portal.

For further information please contact us.

Appealing CIL

What can I appeal against?

The Government has set out the process and requirements for making CIL related appeals in the CIL regulations 2010 (as amended ). Appeals can be made where an applicant believes an administrative error has been made, for example in calculating the liability, mistaking the commencement date of development (deemed consent date), incorrectly applying the apportionment of liability for CIL and against enforcement actions such as surcharges, interest  and stop notices. Further details of the legislation are provided in part 10 of the legislation and as amended in regulation 11 of the legislation.

Can I appeal the liability calculation if I have already commenced my development?

No. The CIL regulations state that a person cannot request a review from the Council or appeal to the Valuation Office Agency (VOA) if the development has already commenced

First stage - Review Request to the Council

In the first instance if you are unhappy with your Liability Notice calculation the apportionment of the liability, or a Charitable Relief apportionment assessment, a request for a review should be made in writing to the Council within the below time restrictions.

When writing to the Council please state clearly the grounds of your review and email or post to the CIL Project Officer, Strategic Planning, Maidstone Borough Council, Maidstone House, King Street, Maidstone, ME15 6JQ.  The request may be accompanied by written representations in connection with the review. Since only one review is allowed and the Council will make their decision on the information submitted, applicants are advised that additional information could help their application.

The Council will acknowledge the request and will review the grounds for the requested review. This will be carried out by an officer who is senior to the person who made the original calculation and who had no involvement in that original calculation. The collecting authority must notify the person who requested the review of the decision and the reasons why within 14 days of the date on which the Council receives the request for a review under regulation S113.

When making a decision, the Council will either confirm the original amount or calculate a revised chargeable amount.

How often can I ask the Council for a review?

You may ask the Council to undertake only one review of the CIL calculation, apportionment or charitable relief assessment. The regulations state that a person may not request a review of a decision reached on an earlier review. It is therefore important that you are clear in your correspondence with the Council that you are seeking a first stage review request and seeking clarification or further information on how the figure or apportionment was calculated

Can I appeal if the review decision if I disagree with the Council?

Should the Council choose to confirm the correct process has been followed, you then have a right to appeal to the VOA.

Second stage - Appeal

If the applicant disagrees with the review decision made by the Council, or does not receive a response from the Council within 14 days of their receiving the request, an applicant can appeal to the Valuation Office Agency against a calculation of the levied chargeable amount in a Liability Notice within 60-days of the issue of the Liability Notice. Work should not be commenced on site until a decision has been given, otherwise the appeal is deemed to have lapsed.

What else can be appealed?

There are two different appeal bodies who adjudicate on the CIL process. The Valuation Office Agency (VOA) and the Planning Inspectorate (PINS).

• An appeal can be made to the Valuation Office Agency (VOA) against a calculation of the levied chargeable amount in a Liability Notice (see above) or also against the apportionment of liability for the levy
• An appeal can be made to the Planning Inspectorate (PINS) concerning Enforcement actions regarding the levy such as surcharges being levied, stop notices and against decisions by Collecting Authorities to deem that development has commenced. View guidance on appealing a CIL enforcement notice.

NB – Appeal applications should be made in writing on a form provided by the VOA and PINS available on the Government’s CIL Guidance.

What can not be appealed?

Appeals against the rate of a community infrastructure levy cannot be made – the charging schedule, once adopted, is for fixed amounts and cannot be negotiated. View details of the Maidstone adopted charging schedule.

For further information please contact us.

Paying CIL

How to pay your CIL, penalties and surcharges and payment in kind options.

Paying CIL

Once the Council receives a Commencement Notice, it will issue a Demand Notice which will detail the amount of CIL due. The Demand Notice will have a payment reference which you will need to quote when making the payment

Pay by Credit or Debit Card

You can make a card payment using our online planning payment form.

Make a CIL payment

BACS or Electronic Transfer

Sort Code: 30-00-02
Account: 00574428

Please include your payment reference from your Demand Notice otherwise we will not be able to match this to your account.

Penalties and Surcharges

If you do not follow the CIL process, penalties and surcharges may be added. View our surcharge and interest table for more information.

We will pursue debtors for non-payment in accordance with the CIL Regulations 2010 (as amended).

Please note: Demand Notices for surcharges for failure to follow the CIL process or for late payment interest, will be registered as a local land charge against the relevant land. This will be removed on receipt of full payment.

Instalments

The CIL Regulations set a requirement that full payment of the levy charge will be made within 60-days of the commencement of the chargeable development. Maidstone Council has agreed that this will apply to payments of less than £250,000. For all those greater than £250,000, there will be an option to pay by instalments

View Maidstone's approved instalments policy.

Please note: This Instalment Policy will not be available if development has commenced before the Commencement Notice has been submitted

Late Payment

Late payment of CIL will incur a surcharge and any right to paying by instalment will be lost. All remaining CIL liability will then become due in full, to be paid immediately. This is set down in the legislation and the Council has no discretion.

CIL Indexation

CIL payments must be indexed from the year that CIL was introduced (2018) to the year that the planning permission is granted. The index previously used is the national All-In Tender Price Index published by the Build Cost Information Service (BCIS) of the Royal Institute of Chartered Surveyors (RICS).

Indexation is added for the full calendar year, 1 January to December 31. It is added the year after the CIL is implemented. In Maidstone this will mean the charging figures that were agreed in the charging schedule will be without indexation from 1 October 2018 through to end of December 2018.

We will use the BCIS figure from 1st November 2017 to reflect the baseline position of when the CIL was implemented in 2018 and the BCIS figure for 1 November 2018 which will be used in all calculations for 2019. The 2017 figure will be the base figure in ALL calculations in all years as this is the indexation in the year in which the schedule came into effect. Indexation is the BCIS figure taken on 1 November in the preceding year. The baseline index rate is 324.

From the 1st January 2020 RICS, with the support of the Ministry of Housing Communities and Local Government (MHCLG), have developed an annual CIL index from this date for the purposes of keeping the levy rate responsive to market conditions.

The year the planning permission was granted indexation figure will change annually as noted above and will apply: 1 January to 31 December.

The Council will publish the RICS CIL Index figure annually here by the end of December.

Are CIL payments subject to VAT?

No

When is full payment required immediately?

When development has commenced and the Council has not received a Commencement Notice, the Council will issue a Demand Notice which requires full payment immediately.

When development has commenced and no one has assumed liability, full payment will be due immediately and will fall to the landowner if no other person takes responsibility.

Where there is a disqualifying event and the relief or exemption no longer applies, such as a self build house or annex sold within 3 years, full payment of CIL will be due immediately.

Payment in Kind

As stated in the adopted Maidstone  Charging Schedule 4.10 and in accordance with Regulation 73 of the CIL Regulations, the Council may support the payment of part of a CIL liability in the form of one or more land payments. This will be subject to the following conditions:

• The Council must be satisfied that the land to be transferred would be appropriate for the provision of necessary infrastructure to support growth in the Borough. It is entirely at the Council's discretion to accept a land transfer in lieu of CIL.
• Transfers of land as payment in kind in lieu of CIL will only take place in exceptional circumstances and is in addition to any transfer of land which may be required via section 106 agreements.
• The chargeable development must not have commenced before a written agreement with the Council to pay part of the CIL amount in land has been made. This agreement must state the value of the land to be transferred.
• The person transferring the land to the charging authority as payment must have assumed liability to pay CIL and completed the relevant CIL forms.
• The land to be transferred must be valued by a suitably qualified and experienced independent person as agreed with the Council. The valuation must represent a fair market price for the land on the day that it is valued and reflect the relevant purposes for which the land will be utilised.
• The land, subject to the transfer, must be free from any interest in land and encumbrance to the land, buildings or structures.
• The land, subject to the transfer, must be fit for a relevant purpose being the provision of necessary infrastructure to support growth in the Borough.
• The Council may transfer the land, at no cost, to a third party for the provision of infrastructure.

Overpayment

Where there has been an overpayment of CIL to the Council, the Council will pay this back  as soon as is practicable. The exceptions to this are:

• Where the overpayment would be less than administrative costs or
• Where no actual cash was received as the payment was in the form of land or infrastructure

For further information please contact us.

Failure to pay CIL

What happens if I don’t pay the CIL?

If the CIL is not paid or the process is not followed correctly the Council will take action in order to recover the debt.

Part 9 of The CIL Regulations 2010 as amended in regulation 10 sets out the processes and enforcement powers of the Charging Authority, to ensure the smooth collection of the levy. The CIL regulations give the Council the ability to remove the instalment facility and to impose late payment interest and surcharges on the levy.

Sometimes Maidstone Borough Council may believe that interest and late payment surcharges will be ineffective in securing payment of the overdue CIL or that writing to the liable person informing them of the surcharges and interest has not resulted in payment.

In these circumstances, the Council may decide to serve a CIL Stop Notice on the development. A Stop Notice prohibits development from continuing until payment is made. Once a notice is issued it is a criminal offence to continue with the development. Persistent failure to pay the levy can result in legal action being sought to recover the debt due by seizing and selling assets, or in an extreme cases result in 3 months imprisonment

View further information on the Councils surcharges and enforcement.

For further information please contact us.

Developer contributions database and calculator

We are working with Exacom to make S106 and Community Infrastructure Levy (CIL) income and expenditure information more accessible using a online database.

You can search for developer contributions information. You can view data in relation to your parish, ward or district area and find out:

• how much CIL and S106 income may be due
• how much has been received
• funds that have been allocated to infrastructure projects
• funds that have been allocated to parish and town councils for spending

Neighbourhood Spend Guidance

Support for Parish Councils, Wards and Neighbourhood Forums on accessing CIL for projects.

What is the non-strategic portion of CIL?

The non-strategic portion of CIL is often referred to as the ‘neighbourhood portion’ of CIL that the Council receives. It can be allocated to local communities within whose area, the development falls.  Parishes with appropriate governance will be passed the CIL. In non parished areas such as Wards, Forums and Meetings, the CIL receipt will be held by the Council and spent in consultation with the local community (see Neighbourhood CIL Spending in Wards/Non Parished Areas).  The distribution of neighbourhood CIL money is 15% for areas without a made neighbourhood plan (capped at £100 per council tax paying dwelling in their area, per annum) or 25% where there is a made neighbourhood plan in place and which was made before the relevant planning permission was granted.

For Parish Councils with no made neighbourhood plan, the 10% difference in CIL money will go to the CIL Strategic Portion. The CIL funds collected will be spent wholly or to partly fund strategic infrastructure types and/or projects to support development across Maidstone Borough. (see CIL Spending webpage)

Neighbourhood plan ‘made’ after 1st October 2018

If a Parish or Neighbourhood Forum makes a neighbourhood plan after the implementation of CIL, then the date of the planning permission  will be the date which will dictate the amount the Parish Council or Neighbourhood Forum will be allocated. All permissions after the plan is made result in a 25% CIL receipt and all permissions before a made plan result in a 15% CIL receipt.

Who can receive and spend CIL?

Parish Councils:

The 2010 Community Infrastructure Levy as amended by the 2013 regulations, Part 59A, sets out that CIL must be passed to “Local Councils in England”. All Parish Councils (which excludes those that are only parish meetings as they are not Councils) will be passed the neighbourhood CIL monies received for their area if they meet the appropriate financial governance requirements. Parish Councils have the right to say to the Borough Council that they do not wish to receive CIL and can ask the Borough to spend the money on their behalf.

Non Parished areas / Wards:

The Council will retain the CIL and spend it in consultation with the local community. The amount of consultation will be commensurate to the amount of CIL received.

When is the money passed to the Parish?

CIL payments to Parishes can be paid up to twice a year for the preceding 6 months’ income.

• CIL income received between 1st April and 30th September in any financial year will be paid by 28th October of that financial year and
• CIL income received between 1st October and 31st March will be paid by 28th April in the next financial year.

These are set out in Regulation 59 (d) of The Community Infrastructure Levy (Amendment) Regulations 2013.

What can the neighbourhood portion of CIL be spent on?

The Community Infrastructure Levy Regulations 2010 (as amended) state that CIL must be spent on:

• The provision, improvement, replacement, operation or maintenance of infrastructure; or
• Anything else that is concerned with addressing the demands that development places on an area.

This gives Parish Councils considerable freedom to spend the neighbourhood portion of CIL on projects that address the impact of development in their local area.

What is infrastructure?

Infrastructure is broadly defined in the  Planning Act 2008. There are typically three broad categories of infrastructure:

• Physical infrastructure - cycle ways, village halls, benches, fencing
• Social infrastructure – education and health facilities, art and culture, sports halls, community assets
• Green infrastructure - parks, woodlands, play areas, public open space

Neighbourhood Portion ongoing costs

Where capital assets are purchased such as buildings, computers etc., the asset should remain a benefit to the community for its useful economic life. Parishes or Forums who commission such projects will be responsible for all future maintenance and associated costs unless otherwise agreed.  When commissioning a project it is expected that due consideration as to how ongoing revenue / maintenance costs for new infrastructure can be secured.

Spending CIL

Only Parish Councils can spend CIL and they may choose to:

1. Spend money on a specific project in the Parish area in accordance with the Regulations
2. Spend money on a specific project in a neighbouring area
3. Choose not to receive the CIL and ask MBC to spend on their behalf
4. Choose not to receive the CIL twice a year but to draw down as and when
5. Use the CIL to lever in matched funding
6. Choose to collaborate with another Parish or Forum where there will be mutual benefits.
7. Choose to fund an infrastructure project run by MBC or other infrastructure provider such as KCC
8. Choose to partner with a third party, landowner or organisation.

Project Spend Accountability

If the Parish Council have chosen to spend the CIL money themselves they will be responsible for its spend, the tendering and commissioning of contractors and their suitability, insurance etc. to undertake the works, paying invoices and managing the whole process. These transactions will be reported in their annual Parish CIL report.

If the Parish Council chose MBC to spend the money then MBC will use their procurement and accounting procedures.

If two Parish Councils collaborate on a joint project they will each be responsible for ensuring their portion of CIL is spent appropriately and correctly reported.

If the Parish Council  works in partnership with another organisation or landowner, the Parish Council will be responsible for accounting for the CIL receipt and its legitimate expenditure.

How to agree what to spend it on

To assist Parish Councils in making the best use of their receipts and neighbourhood forums to be the best able to influence the Council, it is recommended that priorities are identified for the area. The Council suggests that organisations produce and publish on their website an Infrastructure Spend Plan. This should have short, medium and long term objectives and where appropriate provide an outline or details of projects.

Parish Councils are encouraged to work closely with their neighbours, other interested landowners and organisations and MBC, to agree on infrastructure spending priorities.

It should prioritise the projects identified in the adopted Neighbourhood Plan (if there is one) and can form the basis of any local consultation. It would also be prudent for the plan to acknowledge that something specific may arise as a direct result of  development that may require the allocation of CIL funds.

These plans are discretionary but will enable the community to see what is being proposed and will be a useful tool for consultation and consensus building in the local area.

Why create an Infrastructure Spending Plan (ISP)?

An ISP can help to:

• Identify the infrastructure and investment needs within the community.
• Provide an evidence base for spending decisions on locally identified priorities.
• Identify sources of funding and opportunities for matching funding streams to make the most efficient use of income.
• Assist with external funding bids - providing evidence of local investment needs and priorities.
• Provide transparency to the local community - explain where local investment is being targeted.
• Encourage engagement by members of the community who use / will use the facilities and services being delivered.
• Provide a local perspective to help the district councils gain a better understanding of the communities’ priorities.

What should the ISP be based upon?

The ISP is discretionary but a suggested approach is for it to be evidence-based, identifying current/existing infrastructure, assessing the impact of new development on this infrastructure and identifying the specific projects that will help address these.   Sometimes this process can also identify gaps in infrastructure provision, for example identified growth in the numbers of young or older people but a lack of facilities for them locally.

As infrastructure investment decisions affect all members of a community, the organisation should make efforts to engage as many people as possible in the process.

The ISP should also be responsive to changes in development and infrastructure. So that it remains a reliable tool for decision-making, we recommend an  ISP is reviewed at least once a year.

How and where should the ISP be published?

It is recommended that the ISP is published on the Parish Council/ Forum website and a hard copy made available for those without internet access.  We also recommend a copy of the ISP is sent to Maidstone Council’s CIL Team: cil@maidstone.gov.uk.  This is not only so that we have a record of your actions but so that we understand your intentions and support you to work together to achieve your communities’ aspirations and objectives.

Working with Maidstone Council and other partners

It is good practice to discuss any potential expenditure of neighbourhood CIL funds with the Council. Early discussions will ensure that projects are in line with the regulations and will also allow other funding sources to be explored and whether some of CIL managed by the Council can go towards the project.

What other funding is available?

Funds can often go much further when they are pooled together. Other sources of funding include:

• Neighbouring parishes (subject to both parties agreeing)
• Local government grants and other external funding streams
• The strategic portion of CIL income (subject to agreement and compliance with the governance procedures)
• Charities and Trust funds

Matching the neighbourhood CIL with other income streams may mean larger, more locally vital projects can be completed sooner.  If priorities are aligned, the Parish Council may agree that the Borough Council could retain the CIL to spend on infrastructure which falls outside of the Parish’s administrative area but will support the development of the area.

What can CIL not be spent on?

CIL cannot be used as a replacement for everyday Parish expenditure or for things that do not mitigate against the new development. It must adhere to the requirement in the CIL regulations and must be spent on:

• The provision, improvement, replacement, operation or maintenance of infrastructure; or
• Anything else that is concerned with addressing the demands that development places on an area.

The Parish must keep records of CIL

The Parish Council must record all CIL receipts and expenditure for each year and the amount of CIL carried over. MBC as the collecting authority have to prepare an annual plan and any organisation given CIL ie Parish Council must prepare and submit an annual report to the Council.

The report is for the financial year and reports should be submitted by the end of June to MBC. We will then liaise with you if we need more information and then we’ll publish the report by the end of the calendar year.

Reports must be sent to the CIL team and published annually on your website by 31st December, as stated in Regn 62A.  For Parishes with no website these will be published on the Councils website. Parishes that do not receive any money, do not have to publish a report, but may wish to publish one for information, in the interests of transparency.

Requirements for the Parish annual report

The report must comply with accounting and audit procedures and be prepared by those who spend CIL receipts. It should include the following:

An annual CIL report for all Parish CIL monies is required for each financial year (the 12 months ending 31st March).

MBC will collate data from the Parishes and prepare an annual CIL report for all of the CIL money received in the borough and publish this no later than 31st December. The report should  include information on the following:

• CIL receipts.
• CIL expenditure.
• A summary of items on which CIL has been spent.
• The amount spent on each item.
• The amount of any CIL repaid following a repayment notice.
• The amount of any outstanding CIL due to the Council following a notice.
• The amount of CIL retained at the end of the year.
• The amount of CIL from previous years retained at the end of the year.

Supplementary Annual report requirements

In addition to the annual financial CIL report, each year specific details of what the CIL receipts have been spent on will be requested as a supplementary report. The report will provide further details about each project including any photos or additional documentation.

Penalties and consequences for funds that are spent inappropriately

Any funds which are erroneously spent will need to be handed back to the Council. The Council will issue a repayment notice if this occurs.

• If a Parish Council (PC) has not applied the funds in accordance with the regulations, then MBC can serve a repayment notice on the PC requiring it to repay some or all of the receipts that have been transferred to them.
• If the PC receives a repayment notice, they must respond as required, and return any remaining miss spent CIL as directed.  MBC will then be responsible for spending the remaining CIL income on behalf of the PC.
• If the PC is unable to repay the amount specified in the repayment notice, the CIL team  will recover the amount from future CIL income that the PC is due to receive. Regn 59E (5)

Time limit to spend CIL

There is a time limit on spending the Neighbourhood CIL. Regulation 59E states:

• Monies must be spent by the Parish within 5 years.
• If the Parish Council (PC) does not spend their CIL within five years of receipt, the CIL Team  may serve notice on the PC; this is called a repayment notice. Exceptions may be made such as:  if the PC can prove that they have allocated their CIL income to a particular project for which they are accumulating funds before spending.
• If the PC receives a repayment notice, they must respond as requested, and return the un-spent CIL as directed. MBC will then be responsible for spending the returned CIL income on behalf of the PC.

Additional Questions

Are CIL payments subject to VAT?

No

Land Charges Search: Is CIL relevant to my property?

CIL is only levied on new development granted permission from 1st October 2018. All relevant planning permissions will have a CIL informative on the planning decision notice.

CIL is a financial charge on the local land charges register and is removed on receipt of payment. The property/land in question will then no longer be CIL liable except for disqualifying events which will remain on the register until their disqualifying time has expired.  If there is no relevant planning permission there is no CIL liability on the property.

How does CIL differ from S106 agreements, and will I still need to have a S106 agreement?

Yes, you may still need a S106 agreement as these will still be used for site specific mitigating requirements.

S106s will continue to be used for affordable housing and anything site specific required for the development site to make it acceptable in planning terms. CIL will be collected from all liable development but spent on supporting infrastructure across the borough as identified in the Infrastructure Funding Statement 2019/20.

What is classed as commencement?

Development has commenced when material operations have begun. These are defined within Regulation 56 of the Town and Country Planning Act 1990. Operations include any construction work, demolition, digging of a trench for foundations, laying of underground pipes or mains to the foundations, layout or construction of roads or any change of use in the land. Development is also begun when a new use is instituted. You should refer to the TPCA 1990 for further details.

I've given the Council a commencement date, but the date has now been changed. Do I need to tell you, and how?

Yes. We will issue a Demand Notice based on your commencement date, so if this changes you need to let us know. Simply re-submit a new Commencement Notice with the new date provided. We will acknowledge this new date and issue a revised Demand Notice.

I have started construction do I have to pay CIL twice if my scheme changes?

Payments are made on commencement of the development. However, payments made on developments that have not been completed can be credited against levy liability for a revised scheme under a new planning permission. However NO refunds can be made by the Council if a later development has a lower CIL Liability than the development which commenced on the site.

I am making minor material changes to my existing planning permission granted before 1.10.18  will it all become CIL liable? (S73 applications)

No. If your previous consent was before 1st October 2018 and you make a minor amendment it will not make the previously granted floor space liable. However if your minor amendment involves the addition of any new floor space which is a) over 100 square metre or b) is less than 100 square metre but its addition creates a new dwelling, then the additional floor space will become liable.

On an extension of 110 square metre, is CIL payable on the 110 square metre or the 10 square metre above the threshold?

As soon as the threshold is reached, the whole build is chargeable. So CIL would be payable on the 110 square metre.

Is CIL chargeable on temporary structures?

CIL is only chargeable on buildings and not temporary structures. Mobile homes, caravans, glamping units/pods etc are therefore not CIL liable.  A holiday let that is a building and a Class C3 use (Dwellinghouse) would be CIL liable.

If I convert a detached dwelling into semi-detached dwellings will I pay CIL?

Residential sub-divisions with no additional new floor space being added are not liable for CIL.

I want to convert my barn which is not in residential use at the moment into a dwelling; will I have to pay CIL as I am creating a dwelling?

A change of use of a barn to residential would not be liable for CIL as long as the barn was in its lawful use. Or it has been in its lawful use for 6 continuous months of the past three years and there is no additional floor space. If the barn is derelict and does not meet the criteria then it would be CIL liable

Is there a mechanism for the CIL to be spent outside of the charging authority?

Charging authorities may pass money to bodies outside their area to deliver infrastructure which will benefit the development of their area, such as the Environment Agency for flood defence or, in two tier areas such as Kent, the County Council, for education and transport infrastructure.

Will CIL money be spent where it is collected?

The CIL regulations do not require a direct link between where the money is raised and where the money is spent on infrastructure schemes.  The CIL regulations leave it to individual authorities to decide how to redistribute the strategic portion of the CIL income.

I’m building my own home, am I CIL exempt?

The new house will be liable for CIL but you may be eligible for an exemption. You will need to apply for this as well as provide additional evidence 6 months after the build has been completed (see forms 7 part 2). You will then need to occupy the house as your main residence for a minimum of three years. It is important that you apply for the planning permission yourself or in the case of a site with multiple plots, that a clear phased permission is requested so that each plot can be treated separately.

What is set out in the Code of Measuring Practice produced by the Royal Institute of Chartered Surveyors (RICS) regarding GIA definition?

The Valuation Office Agency’s Code of measuring Practice defined Gross Internal Area as follows: 'Gross Internal area is broadly speaking the whole enclosed area of a building within the external walls taking each floor into account and excluding the thickness of external walls.'

GIA will include:

• Areas occupied by internal walls, whether structural or not and partitions, including underground parking
• Service accommodation such as WCs, showers, changing rooms, corridors, circulation space
• Columns, piers, whether free standing or projecting inwards from an external wall, chimney breasts, lift wells, stairwells etc
• Lift rooms, plant rooms, tank rooms, fuel stores, regardless of roof level
• Open sided covered areas e.g car ports

GIA will exclude:

• Open balconies
• Open fire escapes
• Open-sided covered ways
• Open vehicle parking areas, terraces and the like
• Minor canopies
• Any area with ceiling height of less than 1.5m
• Any area under the control of service or other external authorities.

For further information please contact us.