Community Infrastructure Levy (CIL)—considerations for developers and purchasers
Community Infrastructure Levy (CIL)—considerations for developers and purchasers

The following Property guidance note provides comprehensive and up to date legal information covering:

  • Community Infrastructure Levy (CIL)—considerations for developers and purchasers
  • Considerations for developers
  • Implications for property transactions

Considerations for developers

Check whether the LPA has adopted a charging schedule for CIL

CIL is only payable where the relevant LPA has adopted a charging schedule, which sets out the CIL rates. The LPA cannot charge CIL unless a charging schedule is in place.

Check whether the development is liable to CIL

Most new development which:

  1. has 100 square metres or more of gross internal floorspace, or

  2. involves creating one dwelling (even where this is below 100 sq m)

is liable to pay CIL, unless it is subject to a discretionary relief, ie:

  1. social housing relief

  2. charitable relief, or

  3. exceptional circumstances relief

Review the charging schedule to assess what types of infrastructure are funded by CIL

The Localism Act 2011 requires a ‘meaningful proportion’ of CIL funds to be passed on to neighbourhoods to fund infrastructure or other development-related needs; this could lead to further pressure on the timing for LPA infrastructure projects.

Monitor progress of CIL proposals and how they will relate to the development schedule

If planning permission is issued before CIL comes into effect, no CIL is payable.

Take CIL into account early when assessing viability

CIL and s 106 agreement payments may influence the economic viability of the development, so it is advisable to assess the likely financial contributions as early as possible.

Ensure no double-charging

The charging