Community Infrastructure Levy (CIL)

Background 

Public Notice: The Community Infrastructure Levy (Amendment) Regulations 2014 came into force on 23 February 2014. Applications for exemption for self-build residential development, including annexes and extensions, may be made to the district council – subject to a number of criteria – if the development has not been started. Full details below.

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 £s per square metre) in order to pay for the infrastructure needed to support development. CIL charges will be based on the size, type and location of the development proposed.

The Newark and Sherwood CIL Charge 

Following an independent examination in July 2011 and approval at full council on 20 September that year, the Newark & Sherwood Community Infrastructure Levy (CIL) Charging Schedule, including the associated instalment policy, came into effect on 1 December 2011.

CIL Review 

Consultation on the Draft Charging Schedule 

The Council is currently reviewing its CIL and consulted on the Preliminary Draft Charging Schedule (PDCS) during October/December 2016.  This was the first formal step required to adopt a revised Charging Schedule.  Consultation Comments have been summarised and can be viewed on the Council's website under the heading Preliminary Draft Charging Schedule.

The second stage in preparing a revised Charging Schedule was the Draft Charging Schedule (DCS) that was produced following the outcome of consultation on the PDCS.  This document further set out how the current Charging Schedule will be revised and how much levy will be charged.

The Council sought representation on the DCS that included a Statement of Representation Procedure and Draft Amended Regulation 123 List of projects to be funded by CIL.  Copies of all documentation including evidence base were made available for inspection on the Council's website and at at Kelham Hall Newark NG23 5QX.

In addition copies of the DCS (that includes a Statement of Representation Procedure and Draft Amended Regulation 123 List of Projects to be Funded by CIL) Representation Form and information about where  the Draft Charging Schedule evidence base could be viewed were made available at all District libraries.

Representation of the Draft Charging Schedule (DCS) took place for a period of 6 weeks during March/April and closed at 5.15pm on Thursday 13th April 2017. Representation comments are now being summarised and will be made available in due course. 

Draft Charging Schedule Documents 

 CIL Draft Charging Schedule 2017 (PDF File, 424kb)

Draft Residential CIL Charging Zones Map

 Draft Charging Schedule Evidence Base

Whole Plan and CIL Viability Assessment March 2017 (PDF File, 1,872kb)

Infrastructure Delivery Plan Rev 7 February 2017 (PDF File, 13,729kb)

Infrastructure Funding Gap Review Report (PDF File, 448kb)

 

Consultation on the Preliminary Draft Charging Schedule is now closed 

The Council is currently reviewing its CIL the Preliminary Draft Charging Schedule (PDCS) is the first formal step required to adopt a revised Charging Schedule.  It identifies the current thinking on the level at which Newark and Sherwood's District CIL might be revised and set.

Consultation of the  PDCS ended at 4.45pm on Friday 9th December 2016.

Preliminary Draft Charging Schedule (PDCS) (PDF File, 500kb)

Preliminary Draft Charging Schedule (PDCS) Evidence Base 

Whole Plan and CIL Viability Assessment (PDF File, 2,347kb)

Appendix 1 Valuation Report (PDF File, 5,755kb)

Appendix 2 Construction Cost 2 (PDF File, 50kb)

Draft Infrastructure Delivery Plan (PDF File, 13,662kb)

Preliminary Draft Charging Schedule Summary of Responses and Officers Comments (PDF File, 350kb)

 

CIL Examination

CIL may have to be paid if planning permission is granted for your proposal.  It will be charged in pounds sterling (£) per square metre of the net additional increase in floorspace of any given development and payment will be by instalments. This amount will depend on where the development is within the District, the use proposed, the amount of floorspace created and the amount of floorspace lost, i.e. through demolition. For information about the CIL rates in your area please refer to the Charging Schedule below.

CIL Charging Schedule Including Instalment Policy (PDF File, 7,248kb)

The CIL will be used to fund strategic infrastructure within the district. We define strategic infrastructure as improvements to the highway network made necessary by the growth of the district up to 2026 and which cannot be attributed to the development of any one site, and contributions to secondary school provision within the district including a new school in Newark. Full details are in the link to the Regulation 123 List below.

CIL Regulation 123 List (July 2016) (PDF File, 214kb)

Community Infrastructure Levy (CIL)

CIL Guidance

Applicants and agents can find out more by using the link below to the Government’s Community Infrastructure Levy Guidance (2014). This contains full details about CIL including all the processes involved in collecting the charge, making claims for relief and the process for appeals.

What Development will be liable for CIL?

CIL may be payable on development which creates net additional floor space, where the gross internal area of new-build exceeds 100 square metres. This includes development permitted by a ‘general consent’ (including permitted development) started on or after 6 April 2013. The 100 square metre limit does not apply to new houses or flats, and a charge can be levied on a single house or flat of any size, unless it is built by a ‘self-builder’.

CIL will apply to all such buildings regardless of the type of planning permission.

To allow the Council to decide if your development is liable for CIL and if so how much, an information form is available below. This should be completed and submitted with your planning application. This includes applications for householder development. 

Community Infrastructure Levy (CIL) - Planning Application Additional Information Requirement Guidance

Determining whether a Development may be CIL Liable (PDF File, 704kb)

What development will be exempt from CIL?

The following do not pay the levy although in some cases an application for exemption will be required:

  • Development of less than 100 square metres (see Regulation 42 on Minor Development Exemptions) - unless this is a whole house, in which case the levy is payable;
  • Houses, flats, residential annexes and residential extensions which are built by ‘self-builders’ (see Regulations 42A, 42B, 54A and 54B, inserted by the 2014 Regulations); Please Note: CIL Self-Build Exemption must be applied for prior to commencement of works' this is not an automatic exemption and Regulations to do not allow for the exemption to be applied retrospectively.
  • Social housing that meets the relief criteria set out in Regulation 49 or 49A (as amended by the 2015 Regulations); Please Note : CIL Social Housing Relief must be applied for prior to commencement of works this is not an automatic exemption and Regulations do not allow for the exemption to be applied retrospectively.
  • Charitable development that meets the relief criteria set out in Regulations 43 to 48; Please Note: CIL Charitable Relief must be applied for prior to commencement of works this is not an automatic exemption and Regulations do not allow for the exemption to be applied for retrospectively.
  • Buildings into which people do not normally go (see Regulation 5(2));
  • Buildings into which people go only intermittently for the purpose of inspecting or maintaining fixed plant or machinery (see Regulation 5(2));
  • Structures which are not buildings, such as pylons and wind turbines;
  • Specified types of development which are ‘zero’ rated in the charging schedule;
  • Vacant buildings brought back into the same use (see section 2:3:12, and Regulation 40 as amended by the 2014 Regulations);
  • Development proposals that already have planning permission when a CIL Charging Schedule comes into force are not liable for CIL. This includes any subsequent Reserved Matters applications following outline planning permission. However, if proposed developments with planning permission are not started within the time limit set out within the planning permission decision notice, any subsequent renewal or amendment applications will be liable to CIL if by that time a CIL Charging Schedule has been adopted.

There is detailed information about the requirements and the process for obtaining relief from payment in the CIL Guidance document.

Where the levy liability is calculated to be less than £50, no levy is due.

Mezzanine floors of less than 200 square metres inserted into an existing building are not liable for the levy unless they form part of a wider planning permission that seeks to provide other works as well.

PLEASE NOTE THAT YOU MAY NOT SEEK EXEMPTION FROM THE PAYMENT OF CIL WHERE THE DEVELOPMENT LIABLE FOR PAYMENT HAS ALREADY COMMENCED.

If you wish to claim Social Housing Relief of Charitable Relief you will have to complete and return a Request for Claiming Exemption or Relief  and have it approved before the development starts.

Self-Build Exemption

An exemption may be applied to anybody who is building their own home or has commissioned a home from a contractor, house builder or sub-contractor. Individuals claiming the exemption must own the property and occupy it as their principal residence for a minimum of three years after the work is completed. Please Note: CIL Self-Build Exemption must be applied for prior to commencement of works, this is not an automatic exemption and Regulations do not allow for the exemption to be applied retrospectively.

Community group self-build projects also qualify for the exemption where they meet the required criteria.

There may also be an exemption for people who extend their homes or build residential annexes.

Applicants can apply for a self-build exemption at any time, as long as their development has not commenced (see Regulation 7, and section 56(4) of the Town and Country Planning Act 1990, for the definition of ‘commencement of development’).

The self-build exemption does not apply retrospectively – if a levy payment has already been made before the 2014 regulations come into force, no refund will be given.

The guidance note provides information on the specific requirements to qualify for self-build exemption and the procedures you must follow to claim it.

Self-Build Exemption Claim Form – Part 1

(Submit before development starts)

Assumption of Liability Notice 

(Submit alongside Self-Build Exemption Claim Form Part 1)

Commencement Notice 

(to be submitted following granting of relief but before commencement of development)

Self-Build Exemption Claim Form - Part 2 

(submit within six months of completing the home - if the evidence is not submitted to the collecting authority within the six months, the full levy becomes payable).

Self-build exemption extensions and residential annexes

People who extend their own homes or erect residential annexes within the grounds of their own homes are exempt from the levy, provided that they meet the criteria laid down in Regulations 42A and 42B.

There is no requirement for the occupier of the annex to be related to the owner of the main dwelling, or to commit to staying there for a specified period.

Residential extensions below 100 square metres are already exempt from the levy under the minor development exemption.

Self-Build Annex or Extension Claim Form

(To be submitted before development starts)

Commencement Notice 

(To be submitted following granting of relief but before development starts)

Please see the guidance document for further information.

CIL Process

Planning Application Stage 

To allow the Council to decide if your development is liable for CIL and if so how much, an information form is available below. This should be completed and submitted with your planning application. This includes applications for householder development. 

CIL Information Form 

Planning Decision Stage  

Where planning permission is necessary, or permission is granted for development by way of a general consent, the collecting authority will expect the developer, landowner or another interested party to assume liability for the levy by submitting an Assumption of Liability Form. It may speed up the process of issuing a liability notice if this form is submitted before planning permission is granted.

When planning permission is granted for a CIL-liable development, the district council will issue a CIL Liability Notice alongside the planning decision notice or as soon as possible thereafter. This will confirm the amount of CIL payable. It should be noted that it is the responsibility of the person(s) who will pay the charge to serve an Assumption of Liability Form on the Council before development starts, otherwise the charge will automatically default to the owners of the land and surcharges may apply.

Transfer of Assumed Liability Notice 

Withdrawal of Liability Notice 

At least one day before the approved development starts you must complete and submit a Commencement Notice stating when you intend to start work on the development. Once we have received this we will issue you with a Demand Notice, which will set out the payment required and the instalments for each payment (if applicable). The instalment policy can be viewed as part of the Charging Schedule above.

If you fail to make the payments or to complete the required forms before starting, you may be liable to enforcement action. This may result in a prosecution. For more information see the Enforcement Section below.

IMPORTANT – CIL LIABILITY IS HELD AS A CHARGE ON LAND. IF CIL IS NOT PAID YOU MAY HAVE DIFFICULTY SELLING YOUR LAND OR PROPERTY 

Permitted Development

Since April 2013, permitted development (that which does not require planning permission) may be of a 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 development starts. The CIL charge will then be calculated and applied just as though planning permission had been issued. Please note that the council may also advise if CIL is payable when dealing with ‘Do I need Planning Permission’ requests and as part of its Planning Enforcement process. 

IMPORTANT – CIL LIABILITY IS HELD AS A CHARGE ON LAND. IF CIL IS NOT PAID YOU MAY HAVE DIFFICULTY SELLING YOUR LAND OR PROPERTY

Appeals

Appeals can be lodged against some aspects of a levy charge. You might consider an appeal if you believe:

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 determined that the residential annexe was not wholly within the grounds      of the main dwelling;
  • That the council incorrectly determined the value of exemption allowed for self-build;
  • 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.

For further information please refer to the CIL Appeals Note (PDF File, 202kb) or the CIL Guide.

Request for Review of Chargeable Amount

Enforcement

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. For further information about CIL enforcement please go to the Planning Enforcement Page 

IMPORTANT – CIL LIABILITY IS HELD AS A CHARGE ON LAND. IF CIL IS NOT PAID YOU MAY HAVE DIFFICULTY SELLING YOUR LAND OR PROPERTY 

CIL Monitoring & Reporting 

The Council is required to publish an annual monitoring report setting out how much CIL has been collected and how it has been used to fund infrastructure.  These reports are published below. 

Newark and Sherwood CIL Annual Monitoring Report 2011 2012 (PDF File, 339kb)

CIL Annual Monitoring Report 2012/2013 (PDF File, 335kb)

2013 to 2014 CIL Annual Monitoring Report (PDF File, 352kb)

2014/2015 CIL Annual Monitoring Report (PDF File, 314kb)

Community Infrastructure Levy (CIL) Annual Monitoring Report 2015/16 (PDF File, 318kb)

Further Information

For more information about the Newark & Sherwood CIL you can e-mail us at Planning@nsdc.info

Or call us on 01636 650000

General information about the Community Infrastructure Levy is available at the Government’s Planning Portal.

Contact us

Newark and Sherwood District Council
Kelham Hall
Kelham
Newark
Nottinghamshire
NG23 5QX

01636 650000

customerservices
@nsdc.info

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