The CIL Process
The government has set out the process in the Community and Infrastructure Levy (CIL) Regulations 2010 so it is important that this is followed. The process that needs to be followed is summarised below:
1. Applicant informs us of the proposed development
We require all planning applications regardless of liability to be submitted with an accompanying form 1. 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. The Planning Portal has produced guidance on how to complete form 1.
Form 2
All planning applications that are CIL liable will need to have someone assuming liability for payment. They do not have to own or have a material interest in the land. To assist us in the collection process, liable parties whose application is liable for CIL (as ticked under Form 1), are encouraged to submit a form 2 with form 1. This is so the liable person can be issued with a liability notice as soon as practicable after the planning decision has been issued.
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 (for example if you sell the site) then you need to complete and submit to us either form 3 and form 4:
Form 5
CIL is liable on any planning permission we grant, on permitted development, and prior notification applications which are creating a new dwelling with our approval and applications for lawfulness (lawful development certificates). In these cases, it will be your responsibility to inform us, using form 5 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.
2. We confirm receipt of the additional information form and assumption of liability form
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 should be sent us to reflect these changes and the revised liability. Failure to do so may result in the wrong 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 (for example, if you sell the site) then you need to complete and submit either a form 3 or form 4.
4. We issue a liability notice
Once liability has been assumed and as soon is practicable after planning permission is granted, we will issue a liability notice to all parties who have assumed liability. The notice sets out the amount of CIL that is levied on the development. If any changes occur after the 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 request a review. This must be made in writing to us within 28 days of the issue of the liability notice.
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 (form 7 part 1 and form 7 part 2)
- residential annexes (form 8)
- residential extensions over 100 square metres (form 9)
Relief is not automatically available, it must be applied for prior to commencement of development or CIL will be chargeable. The development will cease to be eligible for the exemption if a valid commencement notice is not submitted to us prior to the development commencing. We cannot process requests for relief or exemption retrospectively.
7. We will confirm that relief or an exemption has been approved
It is 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 us of Commencement
The regulations require the submission of a commencement notice by the liable party, informing us of the intended start date. This must be received no later than the day before development commences.
9. We confirm receipt of the commencement notice and issue a demand notice
Once the notice has been received, we will confirm receipt and issue a demand notice. This 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 our instalment policy, whichever is relevant.
10. Applicant pays the CIL amount specified in the demand notice
Find out ways to pay CIL.
11. Payment received
We 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 regulations require us to report on CIL collection and spend. We will publish this on our webpages by 31 December following the relevant financial year end.
For further information please contact us.