How much CIL will I have to pay?
Eligible developments that receive planning permission from 1 July 2014 will be charged in accordance with the rates set out in the CIL Charging schedule.
The amount payable is calculated by multiplying the CIL liable development floorspace by the appropriate rate from the councils CIL Charging Schedule. In addition to this, as prices change over time, a modifier is also applied to the charge to reflect changes in prices. This modifier is termed the CIL Indexation, and it is based upon the All-in Tender Price Index which can be obtained from the Build Cost Information Service (BCIS).
The amount payable is calculated when planning permission is granted. Example calculations of CIL Liability are shown in guidance note 1 - example calculations of CIL liability (PDF).
Where a development has to pay more than £40,000 of CIL charges it can make the payment in 4 instalments over an 18 month period. Details are set out on our Instalment Policy.
CIL payment is mandatory and non-negotiable. If you do not pay on time you will be subject to a penalty and any agreement for you to pay by instalments will be withdrawn. There are strong enforcement powers and penalties for failure to pay, include 'stop notices', surcharges and prison terms.
Relief from CIL charges
The CIL Regulations make provision for certain types of CIL Liable development to receive exemption from the CIL Charge. The CIL Regulations make provision for two types of exemption, mandatory exemptions, i.e. exemptions that always apply, and discretionary exemptions, i.e. exemptions that the council, as charging authority, have resolved to make available.
The mandatory exemptions are:
The council has resolved to offer the following discretionary
- Charitable Developments for Investment (Regulation 44, CIL Guidance Note 4: Charitable Development)
- Charitable Development as State Aid (Regulation 45, CIL Guidance Note 4: Charitable Development)
- Low Cost Home Ownership of Social Housing (Regulation 49A, CIL Guidance Note 3: Social Housing Relief) Detailed information on the processes for claiming this relief is contained in Section 2.7 of the Community Infrastructure Levy Guidance.
It should be noted that above exemptions, with the exception of Minor Developments, must be applied for and are not attributed as a matter of right. Minor Developments exemptions will be determined by the Council as part of the administration process of the application.
The CIL Regulations set out specific requirements for the applicant and the charging authority for progressing the CIL Charge. It should be noted that the above exemptions are only available if ALL of the CIL requirements are met and the appropriate forms and notices are submitted at the appropriate time. Details of the process and the requirements for applicants are set out in the "I Have Submitted My Application and CIL Determination Form, What Happens Next?" section set out below.
Where the CIL Regulations requirements have not been met exemptions can not be made available and the full CIL charge becomes payable immediately, or upon commencement of development.
Permitted development and prior notification development
In rare cases, 'permitted development' (that is development which does not require planning permission) may be of sufficient scale to be liable to CIL. You must serve a notice of chargeable development to us before the development starts. The CIL charge is then calculated and applied as though planning permission had been issued.
The same applies to development granted planning permission under the 'prior notification' process, particularly conversions of offices to residential accommodation.