Community Infrastructure Levy

The following types of planning applications are liable for CIL:

• A new dwelling.

• All residential and convenience based retail development containing at least 100 metres of new build (extra floor space).

• The conversion of a building to residential or convenience based retail that is no longer in lawful use.

For more detail please read our guidance note below 'Is development liable for CIL?'

If you are uncertain whether your proposal is liable for CIL, please submit a completed CIL Additional Information Form with your planning application.

Eligible developments which have received planning permission from 1 December 2014 pay the charges outlined in the CIL Charging Schedule. The CIL Calculation Tool can help you work out the potential charge. You must pay the CIL, which is a non-negotiable amount. If you don't, you may be fined and/or have any agreement to pay be instalments withdrawn. Relief is available in certain circumstances.

Indexation applies annually whereby the base year is the index figure for the calendar year in which the charging schedule took effect (Dec 2014) calculated in a formula for the calendar year in which planning permission was granted. The index is the RICS (Royal Institution of Chartered Surveyors) all-in tender price index. Visit the RICS website for more information on CIL indexation.

The information provided in the calculation tool may be subject to claiming lawful use or relief and that indexation may increase by the time of the planning decision.

• Annual CIL rate summary 2020.
• Annual CIL rate summary 2021.
• Annual CIL rate summary 2022.
• Annual CIL rate summary 2023.
• Annual CIL rate summary 2024.
• Annual CIL rate summary 2025.

CIL Interest rates

CIL Interest rates on Overdue CIL is applied as BOE plus 2.5%.

In certain circumstances we can give relief from paying CIL. People who are an owner of a material interest in the relevant land can claim relief. A material interest is a freehold interest, or a leasehold interest which expires more than seven years after the date on which planning permission first allows development. The following forms of relief are available and the relevant forms must be submitted to claim any relief:

• Charitable relief
• Social housing relief
• Self build exemption for a whole house
• Self build exemption for a residential annexe or extension

You can appeal against our CIL decision. This must be done within 60 days of the Liability Notice being issued and can only be made after you have formally asked us to recalculate the CIL amount. The Planning Portal provides details on CIL Appeals.

The CIL bidding process approved in June 2021 is now under review with a view to publishing the updated guidance by 31 December 2024, subject to agreement by the CIL Working Group and approval by the Planning Policy Committee.

There is currently insufficient funds in the CIL Pot to undertake a CIL bidding round in 2024. We are working towards building back sufficient funding to undertake a CIL bidding round in Autumn 2025 to supplement other funding streams to help ensure new community infrastructure to support local growth. 

We allow CIL to be paid in three instalments, linked to the amount payable recorded in the Demand Notice and set out in the CIL Instalment Policy.

Further guidance on the Community Infrastructure Levy (CIL).

To access Section 106 Agreements, please search for the planning application using the planning application number from the list of Section 106 Agreements. Then click on the planning application and view documents. The S106 Agreement is titled Planning Agreement – Main.

This informal guidance note is part of a series which together have been prepared to assist applicants in understanding how CIL may impact their development and the process which is likely to be followed in charging and payment of the levy. The contents of this note do not override the provisions of – or any powers available to the Council – through the Community Infrastructure Levy Regulations 2010 (as amended).

What type of development is liable?

The following types of planning applications are liable for CIL:

• All development containing at least 100 square metres of new build residential or convenience retail floorspace.
• Proposals for one or more new dwellings (including residential annexes) either through new build or conversion (except the conversion of a single dwelling house into two or more separate dwellings with no additional floorspace).
• Development of less than 100 square metres of new build that results in the creation of a new dwelling.
• The conversion of a building that is not in-use (see definition below), which results in new dwellings (i.e. any form of residential or student accommodation).

A planning application will not be validated until the CIL Additional Questions Form 1 and Assumption of Liability Form 2 have been submitted. The information contained in the forms will enable us to calculate the correct CIL liability.

This applies even if the development would be subject to a £0 rate of CIL, or if it would be able to benefit from the mandatory relief available for charitable development, social housing development and self-build residential development.

What type of development is not liable?

The following types of planning applications are not liable for CIL:

• Development containing less than 100 square metres of new build, provided that it does not result in the creation of a new dwelling.
• The conversion of a building that is in-use (see definition below).
• The conversion of a building that is not in-use (see definition below) provided that it does not result in new dwellings (i.e. any form of residential or student accommodation).
• Development of buildings into which people do not normally go, or into which they only go intermittently for the purposes of inspecting or maintaining fixed plant or machinery (for example wind turbines, electricity sub stations etc).
• Development that brings vacant buildings back into their previous use (for example if a vacant office building was brought back into use as an office and extended by more than 100 square metres only the extension would be liable for CIL).
• Mezzanine floors of less than 200 square metres inserted into an existing building, unless they form part of a wider development (for example, external alterations, changes of use etc).

These types of applications, unless specifically requested by us, will not be required to submit the CIL Forms.

What if it is unclear?

If it is not clear whether a development will be liable for CIL, it is recommended that the CIL Additional Question Form 1 is submitted, and we can ascertain whether the development will be liable for CIL.

Definition of “in-use”

The definition of lawful use is contained in Regulation 40(11) of the Community Infrastructure Levy Regulations 2010 (as amended).

This states that an “in-use building” is a building which “contains a part that has been in lawful use for a continuous period of at least six months within the period of three years ending on the day planning permission first permits the chargeable development”.

This Guidance Note sets out the processes involved in respect of the charging and collection of CIL. Tandridge CIL Charging Schedule took effect on 1 December 2014, and all relevant planning applications validated after that date are liable to pay CIL. Guidance Note 1 will assist in working out if a proposed development will need to pay CIL.

This informal guidance note is part of a series which together have been prepared to assist applicants in understanding how CIL may impact their development and the process which is likely to be followed in charging and payment of the levy. The contents of this note do not override the provisions of – or any powers available to the Council – through the Community Infrastructure Levy Regulations 2010 (as amended).

CIL Process

Step 1
Applicants for a development that will be, or may be, liable for CIL must submit a CIL Additional Information Form 1, and an Assumption of Liability Form 2 prior to a planning application being validated. In most cases the CIL Additional Information Form 1 will contain sufficient information for the Council to calculate the CIL liability. However, further information may be required for large or complex applications.

Note:

• The Council will not validate planning applications until it has received the above forms.
• Continuous Lawful Use: Regulation 40 allows for existing floor space that has been in continuous lawful use for at least 6 months in the past 3 years on the day that planning permission is granted to be used as deductible floor space against the CIL charge for the development. Evidence is required from the applicant to demonstrate continuous lawful use. See link to Demonstrating that buildings are in continuous lawful use for details.

Step 2
When the Council grants a planning consent, it will issue a CIL Liability Notice and register the liability with land charges. In situations where consent is granted on appeal, the CIL Liability Notice will be issued as soon as possible after the appeal decision is issued. At this stage CIL Case officers will check if any relief is going to be claimed see step 3. Applicants may submit claims for relief with their applications or prior to commencement.    

This Notice sets out the total amount of CIL due for the development. If applicants consider that the amount has been incorrectly calculated, they can request that the Council recalculates it. If, on recalculation, applicants still consider the amount is incorrect, they can appeal the decision. Further information relating to CIL appeals can be found on the Planning Portal – CIL Appeals webpage.

The CIL Liability Notice will include all relevant floor space contained in the development, including floor space that may be eligible for affordable housing or charitable relief.

Step 3
Where developments are eligible for affordable housing, or charitable relief, the developer must forward CIL Form 10 – Claiming Exemption or Relief, to the Council. This relief can only be claimed after the Assumption of Liability form 2 has been forwarded to the Council, and only by the person who has assumed liability for paying the CIL.

Self-build claims are made on Forms 7-9 and the same process applies.

For any amendments to previously granted self build relief a CIL form 13 must be completed.

If the development commences before the Council has determined the amount of relief and issued a revised CIL Liability Notice, the claim for relief will lapse, and relief will not be given.

Step 4

Prior to commencing development, one additional form must be submitted and acknowledged by the Council:

• CIL Form 6 – Commencement Notice (This is the form that lets the Council know when development is going to commence, and will form the basis of the dates that CIL payments become due).
• Failure to submit this form prior to commencement.

If this form as well as the Assumption of Liability Form 2 are not submitted to the Council prior to commencement of development, penalty surcharges apply, and the person liable to pay the CIL relating to the development loses the right to pay by instalments if it were otherwise applicable. The Assumption of Liability form may be submitted along with the planning application, (or at any time between submission of the application and commencement of the development) once it is known who will be assuming liability to pay CIL.

Step 5

Once the Council has received CIL Form 6 – Commencement Notice, it will issue a CIL Demand Notice to the person(s) that have assumed liability to pay the CIL. This notice sets out the date that the CIL must be paid by. The notice also sets out the amount due in each instalment and the date it must be paid by.

The CIL Instalment Policy sets out the circumstances where payment by instalments is allowable.

If payment is not made by the due date, penalty surcharges apply. The Council does not have the flexibility to defer CIL in the same way that it can in respect of planning obligations, and payment of CIL is enforceable through both the courts and the planning process. The CIL Penalties and Surcharges Guidance Note provides more information about when surcharges apply and the level at which they are set.

In cases where payment is allowed in instalments, and an instalment is missed, the instalments policy ceases to apply and the total CIL liability is due for payment forthwith.

Step 6

Once the Council has received the CIL payment it will acknowledge receipt of the payment. Upon receipt of the final payment due in respect of a development, the CIL Charge will be removed from the Land Charges Register.

This process will apply in the vast majority of cases. However there are a few situations where the process may be different. For example:

• Where CIL is payable on permitted development, or development granted under a general consent such as a Local Development Order or a Prior Notification Consent.
• Where someone withdraws or transfers their liability to pay CIL.

In such cases there are different forms that must be completed. Advice on these cases is available on the webpage.

This informal guidance note is part of a series which together have been prepared to assist applicants in understanding how CIL may impact their development and the process which is likely to be followed in charging and payment of the levy. The contents of this note do not override the provisions of – or any powers available to the Council – through the Community Infrastructure Levy Regulations 2010 (as amended).

Basis of CIL calculations

All CIL calculations are based on the net increase in the Gross Internal Area (GIA) of the development, as set out in Regulation 40 of the Community Infrastructure Levy Regulations 2010 (CILR 2010)

Indexation

CIL liabilities are index linked from the year in which the charging schedule took effect to the year in which planning permission is granted. The index used is the All-in Tender Price Index published by the Build Cost Information Service (BCIS), as set out in Regulation 40(6) of the Community Infrastructure Levy Regulations 2010 (as amended).

CIL Appeal Process

Appeals can be made against all aspects of the CIL collection and enforcement system, from the CIL Collecting Authority’s (Tandridge District Council) calculation of the amount due to any enforcement actions it may take. The note sets out the procedure for making such appeals: how to make an appeal, when to make an appeal by, and who to make the appeal to.

Community Infrastructure Levy Appeals

Appeals can be made against all aspects of the Community Infrastructure Levy collection and enforcement system, from the Councils calculation of the amount due to any enforcement actions we may take. There are two exceptions where an appeal system does not exist, social housing relief and exceptional circumstances relief.

Appealing to the Valuation Office Agency (VOA) against the Councils calculation of the Levy chargeable amount in a Liability Notice.

Seeking a review of this amount

If you feel that the amount of Community Infrastructure Levy set out in your Liability Notice has been calculated incorrectly, you should first ask the Council to review the calculation. Such a request must be made in writing to cil@tandridge.gov.uk within 28 days of the date on which the Liability Notice was issued. You may also submit appropriate written evidence to support your request to the Council.

How will the Council conduct the review and notify you of the outcome?

When the Council receives your request to review the amount, we will ensure that the person conducting the review is senior to the one who carried out the original calculation. We will notify you of the decision of the review within 14 days of receiving your requests, including the reasons for the decision. However, where development is commenced before you receive notification of this decision, the review will lapse and the original amount will become due for payment in the manner set out in the Demand Notice.

Right of appeal against decision made by the Council following a review of the chargeable amount.

If you are dissatisfied with the decision of the Councils review or have not been notified within 14 days, you may appeal to the Valuations Office Agency (VOA). This appeal must be made within 60 days beginning on the day on which the Liability Notice was issued. However, you may not appeal to the VOA on how the Community Infrastructure Levy amount due was calculated if development has commenced. This appeal will also lapse if development commences before you have been told of the outcome of the appeal.

Appeals against the apportionment of liability for the Levy.

You may appeal to the VOA against any apportionment of liability carried out by the Council. Any such appeal must be made within 28 days of receiving notice of such a decision by the Council. Where an appeal is allowed, any Demand Notices (including surcharges) relating to the development in question will be suspended pending the outcome of the appeal.

Appeals to the Planning Inspectorate concerning enforcement actions regarding the Levy.

First steps – contact the District Council

If you feel that a Levy enforcement action is unwarranted or has been taken in error, you are encouraged in the first instance to contact the Council. This is because it may be a lot quicker and easier to resolve the issue buy contact us first before taking more formal action. However, you should be aware that a formal appeal can be lodged no later than 28 days after the date your notification by The Council.

Formally appealing against a surcharge

Grounds for appeal:
You may appeal against a surcharge imposed by the Council on the following grounds
to the Planning Inspectorate within 28 days of the surcharge being imposed:

• The claimed breach which led to the imposition of the surcharge did not occur
• The Council did not serve a Liability Notice in respect of the chargeable development to which the surcharge relates; or
• That the surcharge has been calculated incorrectly.

Appealing against a surcharge will suspend its effect until the Planning Inspectorate has decided the appeal in question.

Appeals against decisions by the Council to deem that development has commenced

You may appeal to the Planning Inspectorate against any decision by the Council to deem that development has commenced. This appeal must be made within 28 days of receiving notice of such a decision by the Council. Where an appeal is allowed any enforcement decision relating to the deemed date of commencement, including the imposition of any surcharges, will be suspended pending the outcome of the appeal.

Key contacts
CIL appeals to the VOA can be made via e-mail: cil.appeals@voa.gsi.gov.uk.

CIL appeals to the Planning Inspectorate can be made via e-mail: teame1@pins.gsi.gov.uk.

The Council has the right to apply surcharges where there has been a clear breach of CIL procedures. This note sets out the possible consequences of not following the CIL payment procedure, and of late and non-payment of CIL.

Status

This informal guidance note is part of a series which together have been prepared to assist applicants in understanding how CIL may impact their development and the process which is likely to be followed in charging and payment of the levy. The contents of this note do not override the provisions of – or any powers available to the Council – through the Community Infrastructure Levy Regulations 2010 (as amended).

Consequences of failing to follow the CIL payment procedure

Surcharge for failing to assume liability before commencement

Failure to assume liability to pay CIL before the commencement of development may result in the Council imposing a surcharge of £50 per landowner subsequently discovered. This surcharge ensures that the costs of establishing the identities of landowners are borne by the liable parties.

Surcharge where apportionment is necessary

Further, where the Council has to apportion liability between one or more owners of the land, we may also impose a surcharge of £500 per owner. This is to ensure the costs of this apportionment are borne by the owners in question. Both these surcharges are in addition to the loss of payment rights that result from failing to assume liability before the commencement of development.

What happens if a valid commencement notice is not submitted before development commences?

Failure to submit a valid commencement notice before development commences will result in the Council imposing a surcharge of 20% of the CIL amount due, up to a maximum of £2,500.

Surcharge for failing to comply with an information notice

Failure to comply with any requirement of an information notice within 14 days of the notice being served, may result in the Council imposing a surcharge. This would be of 20% of the CIL amount due, up to a maximum of £2,500.

Late or non-payment

Late payment interest

Failure to pay CIL on time will result in the imposition of late payment interest by the Council at 2.5 percentage points above the Bank of England base rate.

Late payment surcharge

Continued failure to pay CIL may result in the Council imposing one or more late payment surcharge. Such surcharges will be imposed in the following manner:

• Five per cent of the outstanding amount where payment is still overdue after 30 days, subject to a £200 minimum;
• Five per cent of the outstanding amount where payment is still overdue after six months, subject to a £200 minimum;
• Five per cent of the outstanding amount where payment is still overdue after 12 months, subject to a £200 minimum.

The CIL stop notice

In some cases the Council may believe that interest and late payment surcharges will be ineffective in securing payment of the overdue CIL. In such circumstances, the Council may decide to serve a CIL stop notice on the development in question. A CIL stop notice prohibits development from continuing until payment is made. Continuing to develop in the presence of such a notice is a criminal offence, punishable by potentially unlimited fines.

Before serving a CIL stop notice however, the Council will first issue a warning to the person liable to pay the amount, the land’s owners, occupiers and all those who will be affected by the notice. It will also post a warning on the site itself. This warning will state that continued non-payment may result in a CIL stop notice being issued. It will also set out the amount overdue and the number of days after which a CIL stop notice may be served if payment continues not to be made. If payment is not made by the end of this period, the Council may serve a stop notice, which will prohibit development with immediate effect immediately until payment of the outstanding amount is made.

Distraint on goods (asset seizure)

When you fail to pay CIL the Council may seek a court’s consent to seize and sell your assets to recover the money due. These assets may include any land you hold. The collecting authority must send you notice of its intention to do so beforehand.

Committal to prison

If you continue to evade paying CIL, the Council can ask a magistrates’ court to commit you to prison for no more than three months. To do this, the Council must be able to demonstrate to the court that it has been unable to recover the CIL amount due by seizing and selling your assets and land.

Development that incorporates social housing is entitled to mandatory relief from CIL on the social housing element of the development.

Status

This informal guidance note is part of a series which together have been prepared to assist applicants in understanding how CIL may impact their development and the process which is likely to be followed in charging and payment of the levy. The contents of this note do not override the provisions of – or any powers available to the Council – through the Community Infrastructure Levy Regulations 2010 (as amended).

Definition of Social Housing

Regulation 49 of the Community Infrastructure Levy Regulations (2010) sets out the conditions that must be met for a dwelling to be considered as social housing.

Regulation 49 (as amended by the 2015 Regulation) subject to meeting specific conditions, social housing relief can also apply to discounted rental properties provided by bodies which are neither a local authority nor a private registered provider.

Process for claiming Social Housing Relief

Applicants should complete Community Infrastructure Levy (CIL) - Form 10: Claiming Exemption or Relief

Regulation 51 of the Community Infrastructure Levy Regulations (2010) sets out the procedures for claiming social housing relief. It is important to note that unless these procedures are rigorously followed, development will cease to be eligible for social housing relief and/or claims for social housing relief will lapse.

In order to benefit from social housing relief, the person/organisation claiming social housing relief must:

• have assumed liability to pay CIL, through the submission to the Council of a CIL Assumption of Liability form, prior to the commencement of the chargeable development; and
• be an owner of the relevant land.

The claim must:

• be submitted to the Council on a CIL Claiming Exemption or Relief form, prior to commencement of the chargeable development; and
• include a relief assessment that identifies on a map the location of the dwellings to which social housing relief applies, sets out the gross internal area of each of the dwellings, and includes a calculation of the amount of social housing relief claimed.

If the chargeable development is commenced before the Council has notified the person/organisation claiming social housing relief of its decision, then the claim for social housing relief will lapse.

In addition, development will cease to be eligible for social housing relief if any of the following apply:

• The Council has not received a CIL Commencement Notice prior to commencement of the chargeable development; or
• The Council has received a Withdrawal of Assumption of Liability form from the claimant prior to commencement of the chargeable development; or
• The Council has received a Transfer of Assumed Liability form prior to commencement of the chargeable development. (In this case a new claim form).
• Social housing relief can be made provided that it is made and determined prior to commencement of the chargeable development).

For any amendments to previously granted social housing relief a CIL form 12 must be completed.

Summary

In summary, to benefit from social housing relief the relevant person / organisation must be an owner of the land, must have assumed liability to pay CIL and must have submitted their claim for relief, and received the Council’s determination, prior to commencing the chargeable development.

They must also have submitted a CIL Commencement Notice to the Council and not withdrawn or transferred liability to pay CIL, prior to commencement of the chargeable development.

Certain types of charitable development are entitled to an exemption from CIL. This note identifies those types of development and provides information regarding the process for claiming charitable relief.

Status

This informal guidance note is part of a series which together have been prepared to assist applicants in understanding how CIL may impact their development and the process which is likely to be followed in charging and payment of the levy. The contents of this note do not override the provisions of – or any powers available to the Council – through the Community Infrastructure Levy Regulations 2010 (as amended).

Definition of Charitable Development entitled to mandatory relief

Regulation 43 of the Community Infrastructure Levy Regulations 2010 (as amended) sets out the conditions that must be met for a charitable development to be entitled to mandatory relief from CIL. These are as follows:

• The owner must be a charitable institution (i.e. a charity, or a trust of which all the beneficiaries are charities, or a unit trust scheme in which all the unit holders are charities); and
• The chargeable development must be used wholly or mainly for charitable purposes and it must be occupied by or under the control of a charitable institution; and
• The granting of mandatory relief would not constitute a state aid.

Discretionary charitable relief

Discretionary charitable relief for investment activities (Regulation 44 of the CILR 2010) and other charitable relief (Regulation 45 of the CILR 2010) are not available in Tandridge District.

Process for claiming mandatory charitable relief

Applicants should complete Community Infrastructure Levy (CIL) - Form 10: Claiming Exemption or Relief.

Regulation 47 of the CILR 2010 sets out the procedures for claiming charitable relief. If these procedures are not rigorously followed, development will cease to be eligible for charitable relief and/or claims for charitable relief will lapse.

• The charitable institution claiming relief must submit a claim to the Council on a CIL Claiming Exemption or Relief form, prior to commencement of the chargeable development.
• If the chargeable development is commenced before the Council has notified the charitable institution of its decision, the claim for relief will lapse.
• Also, development will cease to be eligible for charitable relief if the Council has not received a CIL Commencement Notice prior to commencement of the chargeable development.
• For any amendments to previously granted charitable relief a CIL form 12 must be completed.

Summary

To benefit from mandatory charitable relief, the charitable institution must be the owner of the land and using the land wholly or mainly for charitable purposes. Prior to commencing the chargeable development, they must have submitted their claim for relief and received the Council’s determination, and submitted a CIL Commencement Notice to the Council.

Gross internal area definition

This informal guidance note is part of a series which together have been prepared to assist applicants in understanding how CIL may impact their development and the process which is likely to be followed in charging and payment of the levy. The contents of this note do not override the provisions of – or any powers available to the Council – through the Community Infrastructure Levy Regulations 2010 (as amended).

The starting point for the chargeable floorspace is the gross internal area (GIA) of the development which has been granted permission. This includes all buildings, including ancillary buildings. In all cases GIA is measured in accordance with the RICS Code of Measuring Practice (6th edition, 2007 or any subsequent edition).

GIA is the area of a building measured to the internal face of the perimeter walls at each floor level. Including:

•  Areas occupied by internal walls and partitions.
• Columns, piers, chimney breasts, stairwells, lift-wells, other internal projections, vertical ducts, and the like.
• Atria and entrance halls, with clear height above, measured at base level only.
• Internal open-sided balconies, walkways, and the like.
• Structural, raked or stepped floors are property to be treated as a level floor measured horizontally.
• Horizontal floors, with permanent access, below structural, raked or stepped floors.
• Corridors of a permanent essential nature (e.g. fire corridors, smoke lobbies).
• Mezzanine floor areas with permanent access.
• Lift rooms, plant rooms, fuel stores, tank rooms which are housed in a covered structure of a permanent nature, whether or not above the main roof level.
• Service accommodation such as toilets, toilet lobbies, bathrooms, showers, changing rooms, cleaners' rooms, and the like.
• Projection rooms.
• Voids over stairwells and lift shafts on upper floors.
• Loading bays.
• Pavement vaults.
• Garages.
• Conservatories.
• Areas with a headroom of less than 1.5m (except under stairs)

Excluding:

• Perimeter wall thicknesses and external projections.
• External open-sided balconies, covered ways and fire escapes.
• Canopies.
• Voids over or under structural, raked or stepped floors.
• Greenhouses, garden stores, fuel stores, and the like in residential.

Summary

The Community Infrastructure Levy allows local authorities to raise monies from development for the provision of infrastructure in and around their areas or strategic cross boundary infrastructure projects where several local authorities contribute. A CIL charge is non-negotiable; however, there are exemptions for some types of development such as affordable housing, self-build, self-build extension or annex and charitable relief. Tandridge District Council adopted the CIL charge on 24 June 2014 and CIL came into effect from the 1 December 2014.

Regulations require Tandridge District Council to pass a proportion of CIL receipts collected from developments in their areas directly to Parish or Village Councils to be spent on infrastructure or anything else that is concerned which address the demands that development places on an area.

The District Council will pass accumulated funds to the parish twice a year. The Council will continue to monitor CIL income and to make payments to the Parish Councils, this Guidance will be published and Parish Council clerks will be informed. The Parish or Village Council will be required to report on receipts and expenditure each year.

Introduction

Amendment Regulations have been passed that require charging authorities (the District Council) to pass a proportion of CIL receipts to Parish or Village Councils from developments that take place in their areas. Councils are required to pass 15% of CIL receipts to relevant Parish Councils arising from developments in their areas. This rises to 25% in areas with an adopted Neighbourhood Development Plan. Previously the Government had indicated only that the sum to be transferred would be a “meaningful proportion” of CIL receipts. To prevent excessive amounts being passed on, the payments to areas without a Neighbourhood Development Plan in place will be capped to £100 per existing council tax dwelling per year. This means that a parish with 500 dwellings cannot receive over £50,000 of CIL receipts per year. Annex A sets out the maximum amount that can be passed to each parish and town council in the district.

In areas with a Neighbourhood Development Plan, the amount to be passed over will be 25% with no cap.

How the funds must be spent

The amended Regulations state that this proportion of funds must be used ‘to support the
development of the local area by funding:

(a)the provision, improvement, replacement, operation or maintenance of infrastructure; or
(b)anything else that is concerned with addressing the demands that development places on an area.

This is a wider definition of what the District Council can use CIL funds (restricted to infrastructure to support the development of the area). These wider spending powers allow the local community to decide what they need to help mitigate the impacts of development, for example the money can be used for open space provision, playgrounds, cycle paths, landscape, planting, etc or they can choose to contribute to larger projects funded by other bodies, such as the District or County Council.

If a parish council has failed to spend CIL funds passed to it within 5 years of receipt or has applied the funds not in accordance with the Regulations then the District Council can serve a notice on the Parish or Village Council requiring it to repay some or all of the receipts passed onto it. The District Council will be required to spend any recovered funds in the Parish or Village Council’s area.

Payment periods

The District Council may come to an agreement with a Parish or Village Council on when CIL funds may be passed to the parish council. Where no agreement is in place, the District Council must make payment in respect of CIL it receives from 1st April to 30th September in any financial year to the parish council by 28th October of that financial year and pay the CIL received from 1st October to 31st March in any financial year by the 28th April of the following financial year.

Tandridge District Council must make payments to the Parish Council for CIL payments received from 1 April to 30 September by the 28 October and CIL payment received from 1 October to 31 March by the 28 April of every year. The Council intends to pass CIL payments to the Parish Councils twice a year.

Reporting

To ensure transparency Parish and Village Councils must publish each year their total CIL receipts; total expenditure; a summary of what the CIL was spent on; and the total amount of receipts retained at the end of the reported year from that year and previous years.

Reports can be combined with reports already produced by parish council and should be placed on their websites. A copy of the report should also be sent to the District Council no later than the end of May of each year. A reporting template, Appendix 2, has been produced to maintain consistency throughout.

Appendix 1 – Maximum CIL receipts for Parish or Village Councils can receive annually

Source: 2022 Tandridge District Council Tax Properties.

What development is liable for CIL?

Development will be liable for CIL if it:

• Involves new build of at least 100m2 gross internal area (GIA) floorspace for Chargeable uses – see Charging Schedule; or
• Involves the creation of one or more dwellings.

This includes development permitted by a ‘general consent’ (including permitted development).

My application is CIL liable, what forms do I need?

If your application is liable for CIL you must submit:

• CIL Questions Form 1
• Assumption of Liability Form 2

Are outline applications liable for the levy?

Outline planning permissions granted after the date the CIL Charging Schedule comes into effect, will be liable to pay CIL when the development is built, but as the liability is calculated at Reserved Matters stage there is no need to submit any CIL forms with the outline application. If an outline application includes phasing of development, each phase is treated as a separate development for the purpose of paying CIL. As above, the CIL liability for each phase is calculated at reserved matters stage for that phase.

It should also be noted that if a scheme is granted outline planning permission before the CIL implementation date, the subsequent approval of reserved matters will not trigger a liability for CIL.

Will a development be liable to pay CIL if there was a planning permission 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, whilst a planning permission granted prior to 1 April 2014 can be implemented in its current form without incurring CIL, if a fresh application is submitted then any residential development it comprises, granted planning permission after 1 April 2014, would be liable for CIL even if it was within the application site of the development that had been granted planning permission previously. Residential floorspace previously granted planning permission cannot be set against CIL liability on the new development. The exception to this is S73 applications mentioned above where there is only a minor amendment to the original scheme.
 
Will a development be liable to pay CIL if there was a refusal of planning permission before the CIL Charging Schedule came into effect on 1 December 2014, but an approval of planning permission on appeal is made after 1 December 2014?

Yes. If planning permission was refused before 1 December 2014, but a grant of planning permission was made on appeal after 1st December, the development granted planning permission on appeal may be liable to pay CIL.

Is VAT applied to CIL charges?

The charge levied in £ / m2 on the net additional increase in floorspace for the CIL is exempt from VAT.

What are buildings that people do not normally go into?

Buildings into which people do not normally go and buildings into which people only go intermittently for the purpose of inspecting or maintaining fixed plant or machinery.

Is CIL chargeable for subdividing a house into two or more homes?

No, unless additional new build floorspace is provided as part of the scheme in which case the additional floorspace may be liable.

Is CIL chargeable on second homes?

Yes, providing they are not temporary buildings. Second homes are still dwellings that come under Use Class C3

Is CIL chargeable on mobile homes?

No. CIL can only be charged on buildings. Mobile homes are not normally buildings as defined by law therefore no CIL will be charged on them unless the proposal is considered to be a building

Is CIL payable on garages?

Garages that are an integral part of planning applications for new houses count as “residential floorspace” and are liable for CIL whether integral to the new house design or detached.

No CIL is payable on “lean to” or fully open sided car ports/canopies.

Is CIL chargeable on a barn conversion?

Potentially, but a change of use from a barn to a residential use should not result in CIL liability as long as the barns are permanent usable buildings in lawful use. To be usable such buildings should be weathertight with 4 walls, floor and a roof. The definition of lawful use includes a requirement to be “in use” for a continuous 6 months out of the 3 years prior to planning permission first permitting development; the onus of proof being on the applicant. However any additional new build floorspace proposed as part of the application, extending the barns or to provide new build garages for example would be charged CIL.

Please submit your application using the Planning Portal as this will ensure you are using the up to date CIL forms. The table below lists the forms available, so please check which ones you need and the guidance carefully before going to the Planning Portal using the links provided.

There are statutory forms which need to be submitted, as well as optional forms to claim relief. All CIL liable applications must be submitted with the Additional Information form 0 and the Assumption of Liability form 1.

Please keep a copy of your submitted form, please do provide full contact details, including e-mail addresses, for both the agent and the applicant.

If you want to estimate your CIL costs there is a calculation tool you can use. This is for your own estimate purposes only and may vary from the actual charge.

If you cannot find the CIL Form please contact customer services.

National guidance

Gov.uk
National Planning Portal