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What is the Community Infrastructure Levy (CIL)?

CIL is a non-negotiable charge (represented as £ per m²) on the amount of new floor space created by development. The revenue raised by CIL is to be used for community infrastructure that is required across an area to support population growth. Local Planning Authorities (LPAs) do not have to adopt the CIL, but it is the Government’s preferred means of securing funding from developers for community infrastructure.

LPAs that adopt the CIL, such as East Devon District Council (EDDC), must produce a Regulation 123 List which indicates the specific community infrastructure that might be funded from CIL.

EDDC's Regulation 123 List:

  • Education
  • Exmouth Regeneration Area Infrastructure Projects
  • Exe Estuary Mitigation
  • Pebblebed Heaths Mitigation
  • Clyst Valley Regional Park
  • Health centres
  • Emergency service facilities
  • Library facilities excluding Cranbrook
  • Community and Youth facilities
  • Capital build costs for indoor sports provision at Cranbrook
  • Improvements to sports and leisure provision
  • Open space/ recreation provision, excluding on-site* provision
  • Strategic Transport Infrastructure

*On-site refers to anywhere within the red line on the map accompanying the planning application/Unilateral Undertaking/S106 Agreement. Off-site refers to anywhere outside of this line.

What types of development will be liable to pay CIL?

 In East Devon, only residential and retail developments are liable to pay CIL. In terms of Use Classes, 'Residential' means development which falls into use classes C3 or C4.  For the avoidance of doubt, the Council does not consider that use classes C2 and C2A fall within this definition.  'Retail' means development which falls into use classes A1, A2, A3, A4 or A5 or which is described in Regulation 3(6)(d) of the Order (sale of fuel for motor vehicles). 

Development that creates less than 100 sqm of new floor space is classed as minor development and is not chargeable.  The only exception to this is a new dwelling which is chargeable, whatever the size. 

Please note it is the net new floor space that is charged.  Therefore, if a development includes a retained building (e.g. a barn conversion), or a building needs to be demolished to make way for the new development, then the floor space of these buildings can be deducted from the gross floor space of the new development.  However, these deductions are only allowable if the buildings in question have been in lawful use for a continuous 6 month period at any time over the last 3 years. In the case of retained buildings of the same use class, the requirement to have been in lawful use for a continuous 6 month period at any time over the last 3 years does not apply.

Please also note that CIL is not charged on an outline planning permission as there is often insufficient floor space data with which to calculate the CIL charge. In such instances the CIL is calculated and charged when the reserved matters application comes in. 

If I want to make changes to an existing permission will it be CIL liable

This depends on a number of factors e.g:

  • If the changes increase the floorspace
  • When the existing permission was granted
  • If  works have already commenced on the existing permission

If you want to make changes to an existing permission you are advised to speak to the planning team because it could become CIL liable.  Furthermore, if the existing permission is CIL exempt (see below) there is also a risk that the exemption could be lost.

 Will there be any exemptions?

Affordable housing, self-builds and charities can all claim exemptions from CIL, although they can become CIL liable if a disqualifying event occurs. The disqualifying events are set out in the CIL Regulations under each category of exemption. For example: 

  • For residential annexes – where within three years of occupation of the annexe the main dwelling ceases to be used as a single dwelling or it is let or the annex and the single dwelling are sold separately from each other.

In addition, any exemption can be lost where;

  • Work commences before the authority have notified the person claiming the exemption of their decision
  • Having received an exemption, work commences before submitting a valid Commencement Notice
  • Changes are made to an exempt development during construction (e.g. a section 73 application)

In such events, the exemption is lost and the CIL that would have been due becomes payable with immediate effect. Surcharges may also apply.

 Also, in East Devon, some retail development will be zero-rated, such as that which occurs inside the Town Centre Shopping Areas  as defined in the Charging Schedule.  

What are the CIL rates for East Devon?

The rates for East Devon vary according to development type and location and have been examined by a Planning Inspector at public examination. The table below sets out the Charging Schedule as approved by the Inspector

  

Development Type Axminster, Cranbrook ("existing town") Exmouth, Honiton, Ottery St Mary, Seaton and edge of Exeter allocation sites (defined by new Built-up Area Boundaries and proposed Strategic Allocations) Cranbrook expansion zone Sidmouth, Coast, and Rural (the rest of East Devon)
Residential £80 £68 £125
       
Development Type

Inside Town Centre Shopping areas (as defined in the New Local Plan)

Cranbrook (as defined by the "existing town" plus expansion area)

Rest of East Devon

All other Non residential Uses

£0 £0 £0

However, LPAs must apply indexing to their Charging Schedule to cover construction industry inflation.  This is applied at the beginning of the calendar year, and is calculated using the formula contained in CIL regulation 40. We will provide an updated list of the CIL charges every year to reflect inflationary adjustment.

 Can I pay CIL by instalments?

Ordinarily, the CIL is due within 60 days of works commencing.   Where applied for and agreed the following instalment schedule will apply. (Link to EDDC Instalment Policy and Schedule)

 Does CIL affect the Validation Process?

 CIL is liable when a planning application is determined.  Accordingly, to validate an application for chargeable development, the applicant must include the Form 0 - CIL Additional Information Form with their application.   The exception to this is for Outline Planning applications where the CIL form is completed on submission of Reserved Matters.

 What are the penalties for not complying with the CIL regime?

 LPAs have a range of options available if applicants and/or liable persons do not submit the correct forms and notices or do not pay the CIL within given time frames. EDDC will be proportionate in its compliance action, but it could include any or all of the following:

  • Payment benefits (such as instalments) can be forfeited.
  • Surcharges  can be applied
  • A stop notice can be issued until payment received
  • A liability order from the Court (followed by distress and sale of goods and / or a charging order)

 Will Section 106 agreements continue to exist after CIL?

Section 106 agreements are used to cover some of the cost of community infrastructure works that are required to make a development acceptable in planning terms. However, now CIL is adopted, such agreements cannot be used to fund the same items on a planning authority’s Regulation 123 List because these items are to be funded from CIL receipts (see Q1). Section 106 agreements will only be used for site specific mitigation and affordable housing. Therefore, in areas that have adopted the CIL, the Section 106 burden that developers have to pay in future is likely to be smaller.

Do any CIL receipts get funnelled down to Parish Councils and Parish Meetings?

Parish Councils will get a proportion of the CIL receipts raised from development in their Parish. If they have a Neighbourhood Plan in place, they will get 25% of the receipts and they will be expected to use these to deliver the ‘provision, improvement, replacement, operation or maintenance of infrastructure or anything else to address the demands that development places on an area. If so minded, they can return some of these receipts to higher authorities to enable mutually beneficial projects to proceed. Parishes that do not have a Neighbourhood Plan will get 15% of the receipts and this will be capped at an equivalent of £100 per dwelling per year. 

 For further information contact the Planning Obligations Officer cil@eastdevon.gov.uk