How we can help with the Community Infrastructure Levy

On the face of it, CIL is a non-discretionary tax on development. You cannot negotiate reduction or removal. However, there are a number of ways we can help.

Where an error has been made in the calculation of CIL by the charging authority, we can check and challenge this.

The most common mistake made by Developers is simply failing to complete the correct CIL forms and file them before they commence development, thereby losing instalment options and incurring penalties and interest.

There are a number of reliefs and abatements that can be used to mitigate the cost of CIL. 

The most important relief is for existing buildings. This is conditional upon the existing building having been in use for at least 6 months in the 3 years prior to the date of the planning approval. There is a further less well-known relief where the proposed use is the same as that permitted by an existing use or consent.

A building must be in existence when permission for a CIL liable development is granted if a CIL credit is to be claimed, so on no account should an existing building be demolished until after the planning consent is issued.

There are reliefs for self-builders, charities, and social housing, all of which must be claimed at least 14 days prior to commencement.

Abatements are allowed where CIL has already been paid for development A, and you propose to switch to development B. Further, following the impact of Covid-19, deferred payment and instalments can be negotiated to reduce financing costs.

The cost of CIL is treated as an allowable expense in the overall viability of the project and so its cost will reduce the extent of your Affordable Housing Obligations.

S106 Management can complete your CIL forms, advise of any appropriate reliefs, and consider the impact of CIL on the viability of affordable housing contributions. Please telephone to discuss our service in this regard.