Community Infrastructure Levy & COVID-19 – Payment Deferrals
Considering the current climate in respect of COVID-19, the Ministry of Housing, Communities & Local Government have amended the CIL regulations to allow charging authorities more flexibility in deferring CIL payments.
To be considered for a payment deferral developers will need to provide evidence that:
- They have an annual turnover of less than £45 million and;
- They are experiencing financial difficulties for reasons connected to the effects of coronavirus resulting in difficulty paying the CIL amount due.
To be considered for a payment deferral, please email firstname.lastname@example.org with the above information (along with your Liability Notice reference number), no more than 14 days before or as soon as practicable after the date the CIL payment is due.
Please see link below for guidance regarding CIL payment deferrals:
The Community Infrastructure Levy (CIL) is a charge that local authorities in England and Wales can require of most types of new development in their area (based on £ per sqm), in order to pay for the infrastructure needed to support development. CIL charges will be based on the size and type of the development proposed. Money raised from CIL will be used to help fund infrastructure projects within the District set out on the CIL Infrastructure List.
In order to simplify the processes involved in calculating, understanding and collecting CIL, the Council has produced the following hierarchy. The staged hierarchy does not include information on all relevant considerations and is provided as a guide only. The onus is upon the relevant parties to familiarise themselves with the requirements in full.
Further guidance on the processes involved in CIL can be found in the Council’s CIL Guidance for Applicants and Developer’s document, via the Planning Portal and on the Planning Policy webpages.
How we use your information
We will publish your information on our website to enable other agencies such as statutory and non-statutory consultees and individuals interested in viewing and/or commenting on the application. Your information may be used to enable responses to enquiries from other Council departments, where required by law e.g. land charges. We will redact signatures and private telephone numbers before publishing online and can remove your email address on request. For those customers commenting on planning applications we do need a postal address to enable fair consideration of comments.
Cannock Chase District Council is the data controller. You can find information about how we handle your personal information by visiting www.cannockchasedc.gov.uk/privacynotices.
CIL Stage 1 - Planning Application & CIL Additional Questions Form (applicant)
If you are applying for a development that will trigger a CIL liability (involves the creation of floorspace 100sqm or more, the creation of a new dwelling or the conversion of a building no longer in use) then you must complete and submit Form 1: CIL Additional Questions Form (external link), alongside all other planning application forms and supporting information.
The information provided on this form will enable us to determine whether or not CIL is payable and to calculate the chargeable amount.
All forms are available from the Planning Portal but should be returned to us at the Council.
- Form 1: CIL Additional Questions Form (external link)
- CIL Additional Questions Guidance Note (external link)
Where a development has been applied for under prior approval may be CIL liable a Notice of Chargeable Development form will be required preferably with the application submission.
CIL Stage 2 - Assumption of Liability
The responsibility to pay CIL runs with the ownership of the land on which the liable development will be situated. However, we recognise others involved in the development may wish to pay. Owners of the land, or other parties, must assume liability for the development and the CIL charge, using the Form 2: Assumption of Liability. This must be done before development commences, otherwise a penalty surcharge will apply. The Assumption of Liability Form informs us who will be responsible for paying the CIL charge relating to the development.
The Assumption of Liability form may be submitted with the planning application, or at any time between submission of the planning application and commencement of the development (once it is known who will be assuming liability to pay CIL).
Where there are multiple parties wishing to assume liability, you must tell us the portions you own. CIL liability can then be divided proportionally amongst landowners.
If no-one assumes liability then payment will default automatically to the owners of the land. If no payment is received, payment can also default to the owners of the land. If the Council has to identify the owners of the land, or identify the apportionment, then we can apply a surcharge.
Withdrawing or Transferring Liability
The assumption of liability can be withdrawn or transferred at any time, prior to commencement, by using the forms below.
Once development commences, the assumption of liability can be transferred but cannot be withdrawn. From commencement, liability can be transferred any time up to the date the final payment is due.
If the person who has assumed liability to pay subsequently wishes to withdraw or transfer their liability to someone else (e.g. because they have sold the site), then will they need to complete the appropriate form and send it to the Council. The forms are available below.
- Form 3 - Withdrawal of Assumption of Liability Form (external link)
- Form 4 - Transfer of Assumed Liability Form (external link)
If you fail to notify us of a transfer or withdraw of relief, then we will impose a surcharge.
Impact on Relief
If you assume liability and apply for, and then receive, relief and then wish to transfer liability to another party you should note that the relief will not transfer to the new liable party. This is to prevent relief being granted on land where the land is then sold for higher profits. Following transfer, the new liable party will need to apply for relief, providing all the necessary evidence.
Acknowledgment of Assumption of Liability (Council)
The Council will record and acknowledge in writing the receipt of assumptions, transferals and withdrawals of liability. Upon receipt, we can also issue the CIL Liability Notice.
CIL Stage 3 - Issue of Liability Notice by Council
When you receive planning approval for a CIL liable development, we will then issue you with a CIL Liability Notice as soon as possible following the decision notice. Where planning permission is granted on appeal, the CIL Liability Notice will be issued as soon as possible following the appeal decision.
The Liability Notice sets out the amount you must pay for CIL for the development. The CIL Liability Notice will include all relevant gross internal area floorspace contained in the development, including floorspace that may be eligible for relief or exemption. The gross internal area of a building is the area of a building measured to the internal face of the perimeter walls at floor level (over each floor of the development) - in accordance with the Royal Institute of Chartered Surveyors (RICS) Code of Measuring Practice.
A new liability notice will be issued at any point that the liability changes. This may be as a result of changes to the liable persons, effects of relief or appeal decisions.
Interested parties, where known, will be sent a copy of the liability information.
Once a Liability Notice has been issued, the CIL charge will be registered on the Land Charges Register.
Liability is calculated on the gross internal area (GIA) of the buildings. For a definition of GIA, and for information on how CIL is calculated, see our CIL Charges and calculating CIL page.
Appealing against a Liability Notice
If you consider that the amount has been calculated incorrectly, then you can request that we recalculate it. If, following recalculation, you still consider the amount is incorrect you can appeal to the Valuation Office Agency (VOA) (external link). Time limits for reviews and appeals apply. More information on CIL appeals can be found on the following links
CIL Stage 4 - Applying for Relief of Exemption
Developments may be eligible for relief or exemption from CIL. This is not automatically applied by the Council and you must make an application using the relevant forms and by submitting supporting information and/or evidence. Reliefs or exemptions can be applied for social housing developments, charitable developments and self build developments.
Exceptional circumstances relief can be considered where a Section 106 agreement is in place. To apply for relief or exemption, you must have assumed liability to pay CIL on the chargeable development and you must apply for relief before development commences. Failure to do so will mean that the Council cannot issue relief or exemption. Other conditions apply in relation to relief and exemptions.
The relevant forms to apply for relief of exemption can be found here and you should first consider whether you would be eligible by referring to the CIL guidance for Applicants and Developers document
CIL Stage 5 - Submitting a Commencement Notice
At least 1 day before commencement starts, you must submit a CIL Commencement Notice to the Council. This informs us when the development is going to commence, and forms the basis of the dates that CIL payments will become due.
Failure to submit these forms prior to commencement, or not at all, or providing an incorrect commencement date will result in the Council deeming a commencement date. We will also issue a penalty surcharge, equivalent to 20% of the CIL amount payable or £2,500 (whichever is the lesser amount).
If no-one assumes liability to pay, then liability will rest with the landowner. Where the Council has to identify who the landowners are, we can impose a penalty surcharge.
What is classed as commencement?
Commencement is classed as any material operation that is carried out on the relevant land. This includes the erection of a building, demolition of a building, digging of a trench, laying of underground pipes or mains, any operation to construct a road or any change in the use of land that is classed as material development.
The Council will record and acknowledge receipt, in writing, of your commencement notice and issue a Demand Notice and invoice.
CIL Stage 6 - Receiving a Demand Notice
When the Council receives a CIL Commencement Notice, we will issue a Demand Notice and invoice to the person(s) who have assumed liability to pay CIL. The notice will set out the date that CIL must be paid by. In most cases, you will have 60 days to pay from the date of commencement (unless the Council instalment policy applies - see the CIL guidance for Applicants and Developers document).
If payment is not made by the due date, we will impose penalty surcharges and interest. Payment of CIL is enforceable through the planning process and the courts. Please note, the amount of CIL that is to be paid is related to the planning permission granted on the site not what is then actually built on site i.e. reductions in CIL charges can not be made once you have begun implementing a planning permission with a related CIL charge (unless a Section 73 minor amendment application applies).
Appealing against a Demand Notice
You can appeal on the following grounds:
- The Council incorrectly applied surcharges
- The Council deemed the development to have commenced when it did not
- The Council incorrectly apportioned liability
Time limts for appeals apply. More information on CIL appeals can be found on the following links
CIL Stage 7 - Payment of CIL
The Council will acknowledge all payments received within 5 working days.
Upon payment, providing you are not subject to any relief and clawback periods, we will remove the CIL charge from the Land Charges Register.
If relief has been granted then the CIL charge will remain on the Land Charges Register for 3 or 7 years, depending on whether exemption or relief has been granted, in the event a disqualifying event occurs. The CIL charge will be removed when the time period lapses.
Regarding enforcement of CIL, there are strong enforcement powers and penalties for failure to pay, including Stop Notices, surcharges, late payment interest and prison terms. Further information about the possible consequences of not following the CIL process is contained within the CIL guidance for Applicants and Developers document.
Please note – CIL liability is held as a charge on land. If CIL is not paid you may have difficulty selling your land or property.
Last Updated: 20/01/2021