Community Infrastructure Levy (CIL)

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Home Community Infrastructure Levy (CIL)

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Planning Policy Team

The Redbridge Community Infrastructure Levy background

On 1 January 2012 the London Borough of Redbridge began operating a Community Infrastructure Levy (CIL). This followed approval of the Council’s proposed CIL Charging Schedule by an independent examiner in September 2011.

Link to CIL examination page.

CIL is levied on new buildings and extensions to buildings according to their floor area. In this way money is raised from development to help the Council pay for schools, leisure centres, aged care accommodation, roads and other facilities to ensure the borough grows sustainably. CIL replaces the section 106 “tariff” which has previously been used for this purpose. Section 106 will continue to be used for affordable housing and anything required just for the specific development site to make it acceptable in planning terms. This is set out in the Councils Regulation 123 list.

Regulation 123 list (PDF 39KB).

The Redbridge Charge

The Redbridge Charging Schedule applies CIL at a flat rate of £70/m2 across the whole borough. The same rate applies to all types of development. It is calculated on the net increase in gross internal floor area after allowing a credit for any existing floor space which is to be demolished. The charge is updated annually for inflation.

A minimum threshold applies to non-residential development. If the gross internal area of new build is less than 100m2, the development does not pay CIL. If a new dwelling is being created, it will always pay CIL for any net increase in floor space.

Redbridge Charging Schedule (PDF 31.9 KB).

The Mayoral CIL

In April 2012 the Mayor of London plans to start operating a CIL to help fund Crossrail. It is anticipated the charge will be £35/m2 in Redbridge, but this is still subject to examination. Any Mayoral CIL will be added to the local Redbridge charge and developers will pay one consolidated amount.

The Mechanics of CIL

The CIL charge for liable developments will be calculated at the time planning permission is granted. The trigger for payment is the commencement of development, although depending on the amount of the charge, payments may be phased according to the Council’s Instalments Policy.

LBR CIL instalments policy (PDF 44 KB).

All planning applications involving the construction of new floor space must provide sufficient information to allow the Council to determine whether CIL is liable and – if so – the amount of the charge. To assist intending developers, the Council has prepared an information form which is available below.

CIL information form (PDF 50 KB).

When planning permission is granted for a CIL liable development, the Council will issue a Liability Notice alongside the planning Decision Notice. The Liability Notice says how much CIL is payable. It is the responsibility of the person(s) who will pay CIL to serve an Assumption of Liability Notice on the Council prior to the commencement of development. If this does not happen, the charge automatically defaults to the owners of the land and penalty surcharges may apply.

Assumption of Liability Notice (PDF 25 KB).

Prior to the development commencing, the Council must be served with a Commencement Notice stating the date when the development will commence. The Council then issues a Demand Notice for the CIL payment in accordance with its Instalments Policy. If a Commencement Notice is not received, penalties apply and full payment is due immediately.

Commencement Notice (PDF 19KB).

Exemptions from the Charge

Three types of buildings don’t pay CIL:

Buildings into which people don’t normally go, or only go into to perform maintenance. This covers things like water pump stations or electrical substations.
Affordable housing is exempt subject to an application by a landowner for “relief”. The application form for relief can be found below.
Development by charities for charitable purposes is exempt subject to certain criteria.

Application form for relief from CIL (PDF 182 KB).

Permitted Development

In rare cases, permitted development (that is development which does not require planning permission) may be of sufficient scale to be liable to CIL. It is then the responsibility of the developer to serve a Notice of Chargeable Development on the Council before the development is commenced. The CIL charge is then calculated and applied by the Council just as though planning permission had been issued.

Notice of Chargeable Development form (PDF 152 KB).

Enforcement and Appeals

Unlike section 106 agreements, CIL is not a negotiated process. If a development is liable for CIL, payment is mandatory. There are strong enforcement powers and penalties for failure to pay, including Stop Notices, surcharges, late payment interest and prison terms.

Appeals are possible on the following grounds:

That the Council incorrectly calculated the amount of CIL. (Before making the appeal the developer must first request an internal review by the Council).
That the Council incorrectly apportioned liability between landowners.
That the Council incorrectly determined Charitable Relief.
That the Council incorrectly applied surcharges.
That the Council deemed the development to have commenced when it did not.
That the Council incorrectly issued a Stop Notice for non-payment.

Reporting

The Council is required to publish an annual report stating how much CIL money was collected and how it was used to fund local community infrastructure. The first report will be published in December 2012.