CIL Seminar
A CIL Seminar was held on
Tuesday 25 September 2012 to seek feedback from Developers and
Agents regarding the implementation of CIL and how the system
is working so far.
A copy of the seminar's
presentation can be viewed below:
CIL seminar
presentation slides (PDF 331 KB).
The Council’s Authorities’ Monitoring Report was published in
December 2012 and includes information about the implementation of
CIL and therefore seeks to satisfy the Council’s requirement to
monitor CIL collection and expenditure as per the CIL Regulations
2010 (as amended).
The AMR can be viewed on the AMR
webpage.
Section 6 of the AMR summarises the CIL monies from 1 January
2012 to 30 November 2012. The entire 2012 year 1 January- 31
December Monitoring Report can be downloaded below:
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.
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
The Mayor of London has started to operate a
Mayoral CIL from 1 April 2012 to help fund Crossrail. The
charge is £35/m2 in Redbridge. Any Mayoral CIL will be added
to the local Redbridge charge and developers will pay one
consolidated amount.
The Mechanics of CIL
The CIL Implementation Manual.
The London Borough of Redbridge has developed a draft manual in
partnership with the Planning Advisory Service (PAS) which sets out
all the main elements of introducing and implementing a Community
Infrastructure Levy (CIL).
Redbridge was one of the first eight PAS CIL front
runners and is the first in the country to adopt and
introduce a charging schedule. As a London borough
Redbridge has also implemented the Mayoral CIL from the 1
April 2012.
As experience of CIL spreads it is intended that additional
tools and case studies from other charging authorities will be
added.
Please use the link below to access the Implementation
manual:
http://www.pas.gov.uk/pas/aio/2116641
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.
Further Information
Further general information about CIL may be found:
