Community Infrastructure Levy (CIL) - Updated

Mole Valley District Council (MVDC) has decided to introduce the Community Infrastructure Levy (CIL). This page sets out what has been done so far and the timetable for implementation.

What is CIL?

The Community Infrastructure Levy (CIL) is a charge that local authorities can set on new developments in their area. It has been introduced as a way of raising funds for the infrastructure, facilities and services. For example; transport improvements, schools and other improvements needed to support new businesses and homes in the area. Further details of how CIL funds will be spent can be viewed on our Infrastructure Funding List (see 'Downloads').

In the majority of cases CIL will replace the existing Section 106 agreements which is the planning system previously used to secure funds through planning obligations. However, S106 agreements will continue to operate alongside CIL for certain things such as the Council's Affordable Housing SPD.

Implementation

Mole Valley District Council (MVDC) approved a charging schedule on 11 October 2016. The schedule sets out the types of development that will be liable for CIL and the rates at which CIL will be charged. The schedule has been examined and approved by an independent examiner. The charging schedule took effect on 1 January 2017. From this date, any CIL liable development that is granted planning permission will be liable to pay a CIL charge. You can view the relevant policies and documents (see 'Downloads').

What is a CIL liable development?

The charging schedule includes charges for both convenience retail and residential uses. Your development is likely to be CIL liable if it:

  • creates 100sqm or more of new residential/convenience retail floor space
  • creates a new dwelling
  • involved the conversion/change of use of a building(s) to residential use and the building has not been used for a continuous period of at least 6 months in the last three years

There are exceptions to this rule and you are probably not liable if:

  • the development is less than 100sqm (unless this is the whole house) in which case you would be liable
  • houses, flats, residential annexes and extensions which are built by self-builders (Self build Relief)
  • charitable development which meets the charitable relief criteria (Charitable relief)
  • Social Housing provided by local authority, private registered provider and shared ownership dwellings (Social housing relief)

Development commenced under general consent is liable to pay CIL. 'General Consent' includes permitted development rights granted under the The Town and Country Planning (General Permitted Development) (England) Order 2015.

If you intend to commence development under general consent, you must submit a Notice of Chargeable Development Form 5: Notice of Chargeable Development to the local planning authority before you commence this development. You can view some examples of CIL liable developments (see 'Downloads').

What do I need to do?

  1. ALL planning applications must provide sufficient information to allow us to determine whether the development is liable to pay the levy and if so, to calculate it accurately from the floor areas provided. To do this you MUST submit with you planning application  the Planning Application - Additional Information Requirements Form. Your application will be returned as invalid unless the form is completed.
  2. If you know at this point who the person or party is that will be responsible for paying the CIL charge then you must complete an Form 1: Assumption of Liability. The Council would strongly encourage you to submit this form when you make your application as it can delay any relief that you may apply for if no-one has assumed liability and you could lose some/all of your relief.
  3. If you think you may be liable to apply for an exemption or relief then you will now need to complete one of the following forms:

       Again, the Council strongly encourages that you do this as soon as possible as failure to return the relevant forms within the times specified in the Regulations could result in no CIL relief being granted.

      4.  Once planning permission has been granted and you intend to start works you MUST complete and return a Form 6: Commencement Notice. If you start work prior to submitting this notice then you will be liable to surcharges for non completion of the form and the whole amount of CIL will be required in full and no instalments will be offered.

      5. Once all the relevant forms have been completed and returned then the Council will issue a CIL Liability Notice. The notice will detail how much CIL will be payable and will also detail any instalments which may be relevant. At this stage a charge will also be placed upon the land. Once the CIL liability has been paid in full then the charge will be removed.

How much will I have to pay?

CIL takes the form of a charge on each square metre of additional floor space created. Liability to pay CIL is triggered on all developments that include any new floor space, that is a new building or extension of 100 sqm or more measured by Gross Internal Area (GIA), or any development that involves the creation of an additional dwelling, even when that is below 100sqm. In general terms, any internal area, all floors including rooms, circulation space such as lifts and floor space devoted to corridors, conservatories, toilets, storage and other ancillary buildings are included. For examples of CIL calculations you can click on the form 'Examples if CIL liabilities'(see 'Downloads').

How do I pay CIL?

Before a development has commenced you must have also completed and returned the 'Assumption of Liability' form. If nobody has claimed or informed us of liability then the liability will automatically transfer to the land owners. It is possible to transfer the liability if the situation changes but this must be done in writing and using the Form 4: Transfer of Assumed Liability

The Council has also adopted an instalment policy (see 'Downloads') or this table details the schedule:

Chargeable AmountAmount payable from commencement
Up to £50,000One payment within 60 days
£50,001 - £250,000Two equal payments within 90 days and 180 days
£250,001 - £1 millionThree equal payments within 90, 180 and 270 days
Over £1 millionPhasing preferred, alternatively three equal payments within 90, 190 and 270 days

Surcharges and Interest

Failure to submit the necessary forms, failure to notify the Council of changes, failure to comply with the terms of the notices and late payments will be subject to surcharges and may also incur interest. These surcharges range from £50 - £2,500 and are set out in Regulations 80-86 of the CIL Regulations 2010 (as amended). You can also view a a table showing these regulations in 'Surcharges and Interest'(see 'Downloads').

Enforcement

If a person persistently fails to comply with the Council then they can issue a CIL Stop Notice. This notice prohibits ANY further development on site until such time that the CIL payment is made in full. At this point the notice will be withdrawn. Failure to comply with a stop notice can lead to a fine of up to £20,000. The Council also has the power to apply to the Magistrates Court allowing them to seize and sell all assets of the liable party and in a small number of cases the liable person could be sent to prison for up to three months. Therefore, if you feel that enforcement action is not warranted or you think it may have been taken in error, you MUST contact the Council as soon as possible.

Right of Appeal

There may be circumstances whereby you consider that the levy set out in your Liability Notice is incorrect. If this is the case then you can ask the Council to review the calculation. You must request this in writing within 28 days of the date on which the Liability Notice was issued and you should also include any evidence to support your query. The Council will then notify you of their decision within 14 days of receiving your request.

If development has already commenced before you receive the notification from the Council the review will lapse and the original amount will become due for payment as set out in the original Demand Notice.

If you are still unhappy then you have the right to appeal through the Valuations Office Agency.

You can also appeal against a surcharge or if you consider a levy enforcement action to be unwarranted or taken in error by contacting the Planning Inspectorate.

IMPORTANT - It is an offence for a person who knowingly or recklessly supplies information which is false or misleading in a material respect to a charging authority in response to a requirement under the CIL Regulations 2010 (as amended)

So what now?

Starting on 7 November 2016, applicants are required to submit the additional information requirement form with their planning application. The additional information will enable MVDC to determine whether the development is liable for CIL.

A copy of the planning application additional information requirement form and associated guidance, including all useful forms, forms for relief and exemptions and other useful guidance can be found on the Planning Portal website under the 'Useful Forms and Guidance' section.

If you have any further queries relating to CIL then please email CIL@molevalley.gov.uk or call 01306 879392.

Forms and Guidance

There is more information about CIL on the Planning Portal

Forms for submission with a planning application:

Internet Links

MVDC is not responsible for the content of external internet sites.


Last Updated: 10/04/2017




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