What is the Community Infrastructure Levy (CIL)?

The Community Infrastructure Levy (the ‘levy’) is a charge which can be levied by local authorities on new development in their area. It is an important tool for local authorities to use to help them deliver the infrastructure needed to support development in their area.

The levy only applies in areas where a localauthority has consulted on, and approved, a charging schedule which sets out its levy rates and has published the schedule on its website.

Most new development which creates net additional floor space of 100 square meters or more, or creates a new dwelling, is potentially liable for the levy.

Some developments may be eligible for relief or exemption from the levy. This includes residential annexes and extensions, and houses and flats which are built by ‘self-builders’. There are strict criteria that must be met, and procedures that must be followed, to obtain the relief or exemption.

Your local authority will be able to inform you whether it has adopted the levy. Any authority that charges the levy is required to publish a charging schedule on its website.

In areas where CIL operates, the levy may be payable on development which creates new or additional internal area, where the gross internal area of new build is 100 square metres or more. The cost per square metre varies from council to council and can be checked on their websites.

The following do not pay the levy:

The following can be subject to an exemption or relief where the relevant criteria are met, and the correct process is followed:

Where an exemption or relief has been obtained for residential annexes, self-build housing, charitable development or social housing, it is important to note that a commencement notice must be submitted prior to the development commencing. If a commencement notice is not submitted in time, the charging authority must impose a surcharge equal to 20% of the notional chargeable amount, capped at £2,500. The charging authority only has discretion to waive the surcharge if it is less than any reasonable administrative costs which it would incur in relation to collecting it.

Where the levy liability is calculated to be less than £50, the chargeable amount is deemed to be zero, so no levy is due.

Mezzanine floors, inserted into an existing building, are not liable for the levy unless they form part of a wider planning permission that seeks to provide other works as well.

In England, authorities which can charge the levy are the local planning authority for the area (e.g. district councils, London borough councils, unitary authorities which have district functions, national park authorities,

Mayoral development corporations (where they have plan-making functions)) and the Mayor of London. The Broads Authority is the only charging authority for its area.