CIL and Affordable Housing Contributions
The Community Infrastructure Levy (CIL) is a charge on new developments to deliver the infrastructure needed in the area to support growth by way of the Neighbourhood Fund (formerly known as the Neighbourhood Community Infrastructure Levy).
S106 agreements continue to operate alongside CIL for certain developments such as the Council’s Affordable Housing Supplementary Planning Document.
What is a CIL liable development?
The charging schedule includes charges for both retail and residential uses.
A development is likely to be CIL liable if:
- The increase in floor area is 100sqm or more for retail and residential development, not including new dwellings.
- It includes new dwellings
- The conversion/change of use of a building(s) to a CIL liable development is proposed, and where the building has not been used lawfully for a continuous period of at least six months in the last three years
Development commenced under ‘general consent’ is liable to pay CIL, as well as developments that require Planning Permission. ‘General Consent’ includes permitted development rights granted under The Town and Country Planning (General Permitted Development) (England) Order 2015.
If a development comes under general consent, a Notice of Chargeable Development Form 5: Notice of Chargeable Development must be submitted to the local planning authority prior to the commencement of works.
What to do
- Submit the Form 1: CIL Additional Information with your planning application for validation. This form ensures the Council has sufficient information to determine whether the development is liable and the charges associated are accurately calculated.
- Submit Form 2: Assumption of Liability detailing the party responsible for paying the CIL charge. The Council would strongly encourage this form to be submitted at the beginning of the application process to ensure that there is no delay on any relief that may be applicable. If liability has not been assumed prior to commencement, then the liability will automatically transfer to the landowner, and a surcharge will be applied.
- If the development meets the criteria for CIL exemption or relief, you will need to submit the appropriate form (see links to forms below).
- Once planning permission has been granted and you have a commencement date, complete and return Form 6: Commencement Notice. If the development commences prior to submitting this notice, surcharges will be applied and instalments will not be offered. For the definition of commencement, please refer to Town and Country Planning Act 1990 – Definition of Commencement (see ‘Internet Links’).
- When all the relevant forms have been completed and returned, MVDC will issue a CIL Liability Notice. The notice sets out the charge due and details of the payment procedure. At this stage a charge will be placed upon the land. Once the CIL liability has been paid in full, the charge will be removed.
How much to pay
The chargeable amount will be calculated in accordance with the Community Infrastructure Levy Regulations 2010 (as amended).
The chargeable amount will be calculated on the net additional area created (measured using the gross internal floorspace), and will be dependant on the type and location of the development as detailed in the CIL Charging Schedule. Indexation will also be applied. This is calculated annually by The Royal Institution of Chartered Surveyors (RICS) Building Cost Information Service (BCIS).
The index figure on 1st January 2017, when Mole Valley introduced CIL, was 286.
The chargeable amount may be modified according to any relief granted.
Right to appeal
There are a number of specific circumstances whereby applicants and liable parties can appeal the decision.
All appeals must be made by the applicant or liable party within the relevant timescales set out in the CIL regulations.
If development has already commenced before you receive the notification from us, the appeal review will lapse and the original amount will become due for payment as set out in the original demand notice.
If our decision is not satisfactory, a further appeal can be made through the Valuations Office Agency.
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.
Further information about CIL can be located on the Planning Portal.
Forms and guidance for submission with a planning application:
- Form 2: Assumption of Liability
- Form 3: Withdrawal of Assumption of Liability
- Form 4: Transfer of Assumed Liability
- Form 5: Notice of Chargeable Development
- Form 6: Commencement Notice
- Form 7: Self Build Exemption Claim – Part 1
- Form 7: Self Build Exemption Claim – Part 2
- Form 8: Residential Annex Exemption Claim
- Form 9: Residential Extension Exemption Claim
- Form 10: Charitable and/or Social Housing Relief Claim
- Form 12: Further Charitable and/or Social Housing Relief Exemption Claim
- Form 13: Further Exemption Claim
- Form 14: Phase Credit Application
If you have any further queries email CIL@molevalley.gov.uk or call 01306 885001.
Details of how to calculate contributions for affordable housing are set out in Affordable Housing SPD.
Further guidance as to when on-site affordable housing, or a financial contribution towards affordable housing, is required is contained in the Affordable Housing SPD Addendum.
This guidance incorporates changes to the use of planning obligations which were originally introduced by a Written Ministerial Statement in November 2014 and are now incorporated in the National Planning Policy Framework.
A vacant building credit can be used to offset affordable housing contributions where a vacant building is brought back into use, or is demolished to be replaced by a new building.
Details of how to calculate a vacant building credit are set out in Affordable Housing SPD Addendum.
Applications for development requiring affordable housing must be accompanied by a Unilateral Undertaking (Section 106 undertaking) as a means of securing it.
When submitting a Section 106 undertaking, you must also submit office copy entries and a filed plan (obtainable from the Land Registry) relating to the registered title to the application site.
We charge to check submitted standard Section 106 undertakings relating to affordable housing contributions.
A separate fee, based on the hourly rate of the legal officer dealing with the matter and the amount of time spent on it, is charged for preparing or checking non-standard Section 106 undertakings.