What is the Community Infrastructure Levy (CIL)?
The Community Infrastructure Levy is a levy which the Council will charge on developments. The money raised will go towards the costs of infrastructure projects within Selby District such as schools, transport improvements and GP Practices.
The levy was introduced by the Government through the Planning Act 2008 and the CIL Regulations 2010 (which have been amended in 2011, 2012, 2013 and 2014).
It is a development contribution and applies to most new development, including individual building projects.
It is a legally enforceable levy which is shown as a land charge on the local land charges register.
When does CIL come into effect?
Selby District Council has completed the consultation period and has passed the CIL Inspection. It is planned for CIL to be formally adopted in December 2015 with commencement to take place from 1st January 2016.
Who has to pay the Levy?
Anyone who is involved in the development may take on the liability to pay the CIL. In most cases this will be the developer who has applied for the planning permission or the landowner(s). Where more than one person owns the site they can share the liability (based on their proportion of ownership). Liability notices will be requested prior to commencement of the development which will provide details of liable parties – if no notice has been received then liability for payment will automatically default to the landowner(s).
A person may withdraw or transfer their liability for CIL at any time before commencement by giving notice in writing to the Council. After commencement liability cannot be withdrawn but can be transferred to another person by submitting a liability transfer notice.
What is liable for CIL?
The levy will be liable on any development where the internal gross floor area*of a new build exceeds 100 square metres – the whole floorspace area is charged not just the area over 100 square metres. This would include extensions and buildings which replace demolished buildings.
*Internal gross floor area is the area of a building measured to the internal face of the perimeter walls at each floor level. It should include rooms, service spaces such as lifts and floorspaces devoted to corridors, toilets, storage and underground parking etc.
How will I know if my planning application/development is CIL Liable?
You should complete the Additional Information form (Form 0) and return it by email to email@example.com or by post to CIL team, Selby District Council, Civic Centre, Doncaster Road Selby YO8 9FT. This will enable us to provide detail of your liability.
My planning application is liable for CIL, so what do I need to do now?
How will I know how much I will have to pay?
If you are liable for a CIL Charge you will receive a liability notice detailing your liability within 3 months from the issuing of your planning permission.
When do I pay CIL?
The levy is payable on commencement of the development. This is regarded as any works of construction including demolition, digging of foundations, laying out or construction of access or a material change of use of the land.
What are the CIL rates in Selby District ?
Development will be charged in accordance with the rates set out in the CIL Charging Schedule.
Are there any exemptions to payment of CIL?
There are developments which are exempt from payment of CIL. These include:
- Where the gross internal area of a new building (or extension to a building) is less than 100 square metres (except where the development comprises of one or more dwellings)
- Development by charities on their own land and which will be used wholly or mainly for their charitable purposes
- Social Housing
- Buildings in which people do not normally go into or go into intermittently for maintaining or/and inspecting
The development I propose is permitted development so what do I need to do?
In cases where permitted development rights are exercised and planning permission is not required but where you are creating a new dwelling, such as a prior approval application for the conversion of offices or an agricultural barn to residential use, or are adding over 100m2 as CIL liable development, the CIL process will apply. You are required to submit Form 5: notice of chargeable development (with your prior appoval application where appropriate). This must be accompanied by a plan which identifies the following.
- The land to which the notice relates
- Any buildings in use on that land which are to be demolished before the completion of the chargeable development
- Any buildings in use on that land which will be part of the chargeable development
- The development which is subject of the notice
You can also submit photographic or other evidence if you are claiming lawful use over a six month continuous period during the past three years.
If the permitted development is CIL liable no work should commence until the relevant notices have been served on the Council (Form 5: notice of chargeable development, and Form 6: commencement notice). If you commence work without notifying the Council, you could forfeit any rights you have to appeal or pay instalments, and you may also incur fines and surcharges.
Can I pay in instalments?
Selby District Council has an instalments policy, however, if an instalment is not received by the specific date the remaining outstanding balance will be payable immediately. Failure to pay also incurs surcharges which are set out in the Charging Schedule. Late payments are also subject to interest at 2.5% above the current Bank of England rate.
Are there any discounts or relief of payments?
There are potential exemptions to the levy for self build developments, subject to criteria.
Relief for self-builders and householder extensions
Under this system, anyone who is extending their own property, including an annexe, or building a new property to occupy as their primary residents, can claim relief from CIL. This means either doing the building work yourself or commissioning a builder to do the work. This is not an automatic process and must be applied for prior to work starting on site. You must do the following.
- Submit Form 1: assumption of liability
- Claim exemption for:
- Receive notice from the Council that relief has been granted before work starts
- Submit Form 6: commencement notice before work starts
If self-build expemtion is being claimed for a new dwelling, CIL form 7.2 must be submitted within six months of the completion of the development
Exemption cannot be claimed if the above procedure is not followed.
Can I appeal my CIL Charge?
CIL is not negotiable but should you think a mistake has been made calculating your CIL charge, you can appeal against the Council’s decision. Details of the appeal process can be found via the Planning Portal website - www.planningportal.gov.uk.
Is CIL required for change of use, conversions or demolitions?
A change of use to an existing building MAY NOT be liable for CIL if it does not involve an extension over 100 square meters, or involve a new dwelling.
- If the existing building has been in Lawful Use * and there is no increase in floorarea then the conversion would not be considered liable for CIL.
- If the existing building has been in Lawful Use * and there is an increase in floorarea (i.e. due to an extension etc.) then only the increased floorarea (the difference between existing to proposed) will become liable for CIL.
- If the existing building has not been in Lawful Use* then the whole proposal will be CIL Liable.
- If a development includes demolition, floorarea of an existing building may be taken into account and reduce the chargeable amount (the existing building, to be demolished, has to be present on the date of planning permission in order for it to be taking into account in reducing CIL charge).
*Lawful use is defined as ‘in use (as designated – ie agricultural barn as an agricultural barn) for 6 continuous months out of the previous 3 years’.
How does CIL differ from S106 agreements and will I still need to have a S106 agreement too?
The Council can no longer use s106s in the same way from April 2015 due to a change in government regulations. S106s will continue to be used for affordable housing and anything required for the specific development site to make it acceptable in planning terms; further details of this are outlined in the Charging Schedule.
After I have started construction do I have to pay CIL twice if my scheme changes?
Payments are made on commencement of the development. However, payments made on developments that have not been completed can be credited against levy liability for a revised scheme under a new planning permission. However NO refunds can be made by the Council if a later development has a lower CIL Liability than the development which commenced on the site.
Will I need to pay CIL if I build an extension, permanent summerhouse or garage?
A CIL Additional Information Form will need to be submitted with your planning application. The form asks the size of the development – if it is less than 100 square metres you will not be liable for CIL. If it is over 100 square metres, and the development is not your main residence, you will need to complete a Self Build Annex or Extension Claim form (CIL FORM 9) and agree it with the Council before commencement of the development on site.
Will a residential annex in my garden be liable for CIL?
As above but please note that your residential annex will become liable if within three years the annex is used for any purpose other than as an annex or the annex is let or either the main residence or annex is sold separately from the other.
What happens if the development doesn’t happen or isn’t completed?
CIL is payable on commencement so if the development doesn’t commence there will be no payments due. If the development commences and plans are amended the CIL charges may be reassessed.
When will an application be liable for CIL?
It is proposed that CIL will be formally adopted by SDC on 1st January 2016 (it has been agreed by the Executive Board meeting on 5th November 2015 and will be presented to Full Council on 1st December 2015 – copies of agenda’s and minutes can be found on the Council’s website).
Any application which is determined after the 1st January 2016, no matter when it was submitted, will be liable for CIL if the levy is applicable to the development.
If a site has been granted outline planning permission prior to CIL adoption will it be exempt from CIL until the permission expires?
Yes – CIL will be exempt from a Reserved Matters application for which Outline permission has been granted PRIOR to CIL Adoption.
Will Policy RT2 of the Selby District Local Plan be deleted on adoption of CIL and therefore mean that future developments will not require securing of on-site spaces ?
The draft CIL Charging Schedule and associated documents (which can be found on the Council’s website) included the Council’s 123 list which sets out funding projects. All other matters will continue to be addressed through S106 agreements, such as Affordable Housing, waste and recycling contributions, on-site open/green space which is required as a direct result of the development – this is not an exhaustive list but the approach adopted is consistent with the regulations that if the item is required to ‘make the application acceptable in planning terms’ such as open space, where this would be required as a direct result of the development in line with Core Strategy requirements. This approach is in line with other authorities who have adopted CIL and has been approved at EIP by the examiner as the Economic Viability Assessment has taken this policy implication into account.
What impact will CIL have on a change of use application that involves a change of use into 2 flats which are each less than 100 square metres and no new build is proposed?
In this case the CIL liability is £0.00 as the Economic Viability Assessment demonstrated that apartments are unviable anywhere within the Selby District Council area and therefore rated £0.00 as indicated within the charging schedule.
If I want to purchase a plot of land, which previously had a detached property on it and build a larger one for my family to live in, would I be liable for CIL and the Affordable housing contribution?
If you met the CIL regulations requirements for Self-builds you would not be liable for CIL payment. Details can be found within the Community Infrastructure Levy Regulations 2010 (as amended),(Section 54).
With regards to the Affordable Housing contributions, this would be liable but this would be clarified once an application has been submitted and validated.
If I build a replacement dwelling will I still pay CIL?
If you can demonstrate that the building has been in continuous use for 6 months out of the past 3 years the CIL liability will be on only the increase in volume (if any) and not on the original dwelling
If I convert a detached dwelling into Semi- detached dwellings will I pay CIL ?
Residential sub-divisions are not liable for CIL, however if a change of use, additional floor space (over 100 Square metres or more) are proposed then CIL would be liable.
I want to convert my barn which is not in residential use at the moment into a dwelling, will I have to pay CIL as I am creating a dwelling?
A change of use for the barn to residential would not be liable for CIL as long as the barn is in lawful use and therefore you would not be liable for CIL.
Where can I get further information from?
You can send any general enquires to firstname.lastname@example.org