Community Infrastructure Levy

The Community Infrastructure Levy (CIL) is a charge which allows the Council to raise funds from new developments for use on infrastructure to support the growth of the District. It came into force on 6 April 2010 through the Community Infrastructure Levy Regulations 2010. The money collected from the levy will be used to support development by funding infrastructure that the Council, local community and neighbourhoods need.

The levy will apply to most new buildings and development over 100 square metres in size. Charges will be based on the size, type and location of the new development and are set out in the Charging Schedule.

Three Rivers’ CIL Charging Schedule was adopted by a decision of Full Council on 24 February 2015. It came into force on 1 April 2015. You can download the Adoption Notice and the Adopted CIL Charging Schedule below:

Charging Schedule (pdf)

Instalments Policy (pdf)

Regulation 123 List (pdf)

Adoption Notice (pdf)

Examination

The Draft Charging Schedule and key documents were examined by Mr Philip Staddon Bsc, Dip, MBA, MRTPI. He concluded that, subject to modifications, the Draft Charging Schedule formed an appropriate basis on which to introduce a Levy. His report on our CIL can be located below:

Inspector's Report (pdf)

A complete set of Examination documents can be viewed here

Modifications

We published a Statement of Modifications to the Draft Charging Schedule and associated CIL documents on 3 October 2014. Copies of the proposed modifications were sent to each of the persons invited to make representations on the Draft Charging Schedule and were deposited at the Council offices and at the District’s libraries. The Statement of Modifications can be viewed here.

Setting the Community Infrastructure Levy charge

The Community Infrastructure Levy (CIL) charging rate must be set based on evidence of an infrastructure need, for which there must be a deficit in funding, and on the basis of evidence on the economic viability of bringing forward a proposal for development within the District. The evidence supporting the charging schedule can be viewed here.

Information regarding your CIL application:

Please note:

If your development is CIL liable, EVEN IF YOU HAVE BEEN GRANTED EXEMPTION FROM THE LEVY, PLEASE BE ADVISED THAT BEFORE COMMENCEMENT OF ANY WORKS:

It is a requirement under Regulation 67(1), of The Community Infrastructure Levy Regulations 2010 (as amended) that CIL FORM 6 (COMMENCEMENT NOTICE) MUST BE COMPLETED, returned AND acknowledged by Three Rivers District Council BEFORE BUILDING WORKS START so as to avoid surcharges being imposed.

HOWEVER, PLEASE NOTE THAT A COMMENCEMENT NOTICE IS NOT REQUIRED FOR RESIDENTIAL EXTENSIONS IF RELIEF HAS BEEN GRANTED.

Step 1

All planning applications, including those for Lawful Development Certificates, must have the CIL additional information form submitted alongside them (see below). We require this additional information to determine whether a charge is due, to determine the amount of CIL payable and to ascertain whether relief is being requested. The CIL guidance note provides advice on how to fill in the CIL additional information form.

Application forms for CIL to be submitted with your planning application:

If this form is not submitted your planning application will be deemed invalid.

Step 2

The following CIL forms should be completed and returned where necessary:

CIL form 2 - Assumption of liability

This form must be completed and is required to assume liability for the payment of CIL, or to claim for relief or exemption, including self-build exemption.

CIL form 3 - Withdrawal of assumption of liability

This form is required if you have previously assumed liability to pay CIL but will no longer be the party making the payment.

CIL Form 4 - Transfer of assumed liability

This form is required to transfer the responsibility for paying CIL between parties. It must be used if the person who assumed liability using form 1 (Assumption of Liability) will no longer be paying CIL, but has already agreed with another party that they shall be paying instead.

CIL Form 5 - Notice of chargeable development

This form is required to give us as charging authority notice of work which may be liable for CIL being carried out under General Consent / Permitted Development rights.

CIL Form 6 - Commencement notice

Once planning permission is granted but BEFORE any works start:

With the exception of residential extensions that have been granted relief, please note it is a requirement under Regulation 67(1) of The Community Infrastructure Levy Regulations 2010 (as amended) that a Commencement Notice MUST be submitted to the collecting authority no later than the day before the day on which the chargeable development is to be commenced.

In ALL cases (other than residential extensions that have been granted relief) you must complete and return this form informing the council of the commencement date before a development which is CIL liable can start. It is a requirement under Regulation 67(1) of The Community Infrastructure Levy Regulations 2010 (as amended) that this form MUST be submitted to the collecting authority no later than the day before the day on which the chargeable development is to be commenced.

Do not start your development until ‘Acknowledgement of Receipt of Commencement Notice’ has been received from the council. Failure to await receipt means you will lose the right to payment by instalments (where applicable) and a surcharge will be imposed.

Relief for self-builders and domestic extensions

In February 2014 the government introduced exemption from CIL for self-builders. Under this system, anyone who is extending their own property, or building a new property to occupy as their primary residence, can claim relief from CIL. Please note this is not an automatic process and must be applied for, BEFORE work starts on site. You must also assume liability for the development and send us a CIL Commencement Notice if you are building a new property, as explained above, BEFORE work starts in order for the exemption to be considered.

CIL Form 7 - Self build exemption claim Form (part 1)

This form is used to make a claim for self build exemption when a new dwelling is being constructed. This should be used when the dwelling is going to be your primary residence on completion for at least three years - please also pay attention to the declarations in section B of the form.

CIL Form 7 - Self build exemption claim Form (part 2)

This form is to be used in conjunction with Form 7 (part 1) for schemes where self build exemption has been granted for new dwellings. It must be submitted to us within six months of completion of the build, accompanied by the supporting evidence set out in the form, which includes completion certificate, utility bills, bank statements or similar showing the property address, self-build mortgage or similar.

CIL Form 8 - residential annex exemption claim Form

This form must be used to claim for self build exemption when the work being carried out is the creation of a residential annex to be used as ancillary accommodation to the main dwelling.

CIL Form 9 - residential extension exemption claim Form

This form is to be used to claim self build exemption when the work being carried out is a domestic extension which has a gross internal floor area of more than 100 square metres (extensions with a gross internal area of less than 100 square metres are exempt from CIL)

CIL Form 10 – Charitable and/or Social Housing Relief Claim Form

This form is required to claim exemption or relief for social / affordable housing or developments by registered charities for charitable use.

Form 11: Exceptional Circumstances Relief Claim Form

Not applicable For Three Rivers District Council

Form 12: Claiming further charitable or social housing relief (when development is altered)

This form should be used by persons seeking to obtain further charitable or social housing relief from the levy when the development previously subject to relief is subsequently amended by a section 73 permission, creating a new levy liability.

Form 13: Claiming further self-build dwelling, residential annex or residential extension exemption

This form should be used by persons seeking to obtain further exemption from the levy when the development previously granted an exemption is subsequently amended by a section 73 permission, creating a new levy liability.

Form 14: Application to apply a ‘phase credit’

This form must be used by a person who has assumed liability for a phase of a development which was originally granted planning permission before the adoption of a levy charging schedule in the area, but which is now subject to a levy liability, who wishes to apply a ‘phase credit’, created in a separate phase of the development, to offset the levy liability.

Useful Information

Please provide the following information for agent (if applicable) and applicant: address, telephone number, email address
Although notices are usually served by the Agent (if one is appointed) CIL Liability lies with the applicant. It is the Agents responsibility to ensure the applicant is kept up to date and is in receipt of relevant forms, documents, and notices sent from the Council.

Does Inflation affect CIL Charges?

Charging authorities are required to apply an annually updated index of inflation to keep the levy responsive to market conditions. Click on the link below for further information:

yearly-cil-rates-table.pdf (pdf)

FAQ’s

Is my development CIL Liable?

A development will be liable to pay CIL if:

It is of a type and location for which a rate has been set in the Charging Schedule;
It is a building into which people normally go;
It is creating 1 or more new dwellings, or an annex, even where the floorspace is less than 100 square metres;
If it involves the change of use of a building that has been unused for a period of time, it may be liable.

A development may be exempt from paying CIL if:

The development is less than 100 square metres, unless it is a new dwelling or annex. In this case, the levy will be payable;
Is eligible for self-build exemption and the relevant claim form has been submitted and acknowledged;
It is for a structure or building into which people do not usually go, such as pylons, wind turbines; or go into only intermittently for maintenance, such as plant rooms;
A change of use with no additional floorspace and the former use has been lawful and in continuous use for a period of at least six months over the past three years ending on the day the planning permission first permits the development;
The development is a change of use from a single dwelling to two or more separate dwellings with no additional floorspace;
The development is for affordable housing, charitable purposes or it is self-build housing. If your proposed development is for any of these purposes, please note that you will be required to formally apply for CIL relief.

What is the gross internal area (floorspace)?

GIA is taken from the RICS guidance and includes:

Areas occupied by internal walls and partitions (e.g. a roof plus three walls)
Columns, piers, chimney breasts, stairwells, lift-wells, other internal projections, vertical ducts etc.
Atria and entrance halls
Internal, open-sided balconies, walkways etc.
Mezzanine floor areas with permanent access
Service accommodation such as toilets, toilet lobbies, bathrooms, showers, and changing-rooms, cleaner’s rooms etc.
Garages and conservatories

GIA excludes:

Perimeter wall thickness and external projections
External, open-sided balconies, covered walkways and fire escapes
Greenhouses, garden stores, fuel stores etc.
Areas with headroom less than 1.5m

Will I have to pay CIL when building an extension to my property?

If you are building an extension to your property, you may not be required to pay CIL if:

The main dwelling is your principal residence
The extension enlarges the principal residence but the addition is under 100 square metres in size.

I am building an annex; will I have to pay CIL?

If you are building a residential annex to create a new dwelling within the grounds of your main dwelling, you may not be required to pay CIL provided that you meet the following criteria:

The main dwelling is your principal residence and you have a material interest in it.
The residential annex is wholly within the curtilage of the main dwelling and comprises of one new dwelling.

The full CIL amount will be payable within three years of completion if:

The main house is used for any purpose other than as a single dwelling, or
The annex is let, or,
Either the main residence or the annex, are sold separately from the other.

If I am building my own ‘self-build’ property; will I have to pay CIL?

Self-build homes are exempt from CIL, subject to various criteria. The category of ‘Self-build’ applies to anyone who is building their own home or has commissioned their home from a contractor, house builder or sub-contractor.

Upon completion you must own the property and occupy it as your principal residence for a minimum of three years after the development is completed. If within the first three years you sell or rent the property out, or stop using it as your main dwelling, you must notify the Council within 14 days of the sale/rent. The CIL chargeable amount which was originally waived will then be payable in full. Failure to notify the Council that you wish to sell/rent your dwelling will result in enforcement action.

Is a change of use liable for CIL?

If a building has not been in continuous lawful use for a period of at least six months over the past three years ending on the day the planning permission first permits development the development will be liable for CIL.

However, if the building has been in continuous lawful use for a period of at least six months over the past three years ending on the day the planning permission first permits development, the development will only be liable for CIL if there is additional new build floorspace.

Will my development be liable to pay CIL if planning permission was granted before the CIL Charging Schedule came into effect, but an approval of a Section 73 application to vary or remove conditions of that planning permission is made after the CIL Charging Schedule came into effect?

Yes. If full planning permission is granted before publication of a CIL Charging Schedule, but an approval of a S.73 application to vary or remove conditions is made after publication of the CIL Charging Schedule, the approval does trigger a liability to pay CIL because it results in a new planning permission. However, although a new CIL liability is triggered, the new additional chargeable amount is equal only to the net increase in the chargeable amount arising from the original planning permission, so as to avoid double counting of liability. In effect, if the application to vary a condition does not result in an increase in floorspace then there will be no charge.

If my development does not require planning permission, will I still be liable to pay CIL?

Development commenced under ‘general consent’ may be liable to pay CIL. If you intend to develop under ‘general consent’ you must complete a ‘Notice of Chargeable Development’. The standard criteria for determining whether you will pay CIL will then apply.

The date of commencement has changed. Do I need to tell you?

YES. The Council will issue a Demand Notice based on your commencement date, so if this changes, you need to let us know BEFORE commencement. You are required to re-submit a new commencement notice with the new date, we will then acknowledge with a new commencement notice.

Can existing buildings that will be demolished be discounted from the CIL charge?

The gross internal floorspace of any existing buildings on site that are going to be demolished or reused may be deducted from the calculation of CIL liability, providing that the building has been in continuous lawful use for at least six months over the past three years ending on the day the planning permission first permits development.

APPEALS

What happens if I don’t pay the CIL charges?

CIL is a mandatory and non-negotiable planning charge and there are penalties and surcharges for non-payment, including the option to pay by instalment being automatically withdrawn. There are also strong enforcement powers, including Stop Notices, surcharges and prison terms.

Can I appeal against your decision on the chargeable amount?

You can appeal against the Council’s decision in relation to your CIL liability, but please note that appeals must be made within 60 days of the Liability Notice being issued, and appeals can only be made after you have formally asked us to recalculate the CIL amount (which must be done within 28 days).

You can also appeal against the apportionment of liability, charitable relief, self build exemptions, surcharges, commencement of development and a Stop Notice. Further information and the relevant forms can be found on the GOV.uk website below:

https://www.gov.uk/guidance/community-infrastructure-levy-how-to-make-an-appeal