
Community Infrastructure Levy
The Community Infrastructure Levy (CIL) is a charge on new development to deliver the necessary infrastructure in an area. Introduced by the 'The Community Infrastructure Levy Regulations 2010' and amended several times since, most new development which creates net additional floor space of 100 square metres or more, or creates a new dwelling, is potentially liable for the levy.
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CIL is complicated and many people, planning professionals included, can often get their heads in a spin trying to understand the rules, regulations and reasons around it. Homeowners, developers and agents can often be found asking:
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I got my planning permission and was looking to start the development next week but then I received a CIL Liability Notice in the post out of the blue and have no idea what it is! It says I owe thousands of pounds, and this could bankrupt me. Is there anything that can be done?
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I’m considering developing some land but want to mitigate the CIL Liability, are there any ways I can do this?
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I’m helping my client with a planning application but the CIL is quite intricate on this job. Are you able to assist with the CIL while I manage the main application?
The answer to all these questions is – yes. As a planning consultancy, we are familiar with all things development economics – including CIL.
What is my CIL charge?
The Community Infrastructure Regulations have various ​factors to be considered but the main calculation is:
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What is the CIL charging rate at my site for my intended use? This will be a cost per square metre published by the Council
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What is the Gross Internal Area of my development? Your architect or planning consultant should have access to this from the application's plans.
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What are the index rates? The index rates allow the Council's charging rate to be adjusted for inflation? Every year, the index rate is updated and your council will adjust for indexation by taking the index the year planning is granted divided by the index the year the charging schedule was adopted. This will bring the charge up to today's equivalent amount in pounds and pence.​​​​​​​​
Charge per square metre x GIA x Index this year ÷ Index in year charging schedule was adopted
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Other factors will impact the final CIL charge, such as existing floor area and exemptions, so for more information on your CIL liability, you should review Schedule 1 of the CIL Regulations, which are available online. Please be aware - the CIL Regulations have been updated several times and, therefore, you will need to be conscious of any amendments to the law.​