Q&As

A development site is made up of two parts—one larger part where the main development (for example a block of flats) will take place and a second smaller adjoining piece of land where a single garage will be built. The larger piece of land is owned by the developer and the smaller piece of land is owned by a third party. If the developer accepts responsibility for the Community Infrastructure Levy (CIL) liability for the whole development, what would happen if the developer became insolvent and had not paid the CIL liability? Is there a risk that the third party could become liable for the whole of the CIL liability on the developer's insolvency?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 08/04/2020

The following Property Q&A Produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • A development site is made up of two parts—one larger part where the main development (for example a block of flats) will take place and a second smaller adjoining piece of land where a single garage will be built. The larger piece of land is owned by the developer and the smaller piece of land is owned by a third party. If the developer accepts responsibility for the Community Infrastructure Levy (CIL) liability for the whole development, what would happen if the developer became insolvent and had not paid the CIL liability? Is there a risk that the third party could become liable for the whole of the CIL liability on the developer's insolvency?

The Community Infrastructure Levy (CIL) was introduced by section 205 of the Planning Act 2008 (PA 2008) and came into force in 2010. It allows local authorities to raise a charge on new developments in their area on developments which create a new dwelling or additional floor space of 100sqm or more. Detailed rules are set out in the Community Infrastructure Levy Regulations 2010 (CILR 2010), SI 2010/948, made under PA 2008.

The scheme of the CIL under both PA 2008 and CILR 2010, SI 2010/948 is to enable a person to take liability for the CIL (CILR 2010, SI 2010/948, reg 31) and in default (ie where there has been no assumption of liability for the CIL under CILR 2010, SI 2010/

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