6. Paying and calculating CIL
The Community Infrastructure Levy (CIL) is calculated per square metre.
The calculation involves multiplying the CIL charging rate by the net chargeable floor area (based on Gross Internal Area), and factoring in an index figure to allow for changes in building costs over time.
The full calculation is set out under CIL Regulation 40
Existing floor area that has been in continuous lawful use for a period of 6 months within the 3 year period preceding development being permitted can be used as deductible floor area in the calculation of the CIL liability. The onus is on the applicant to demonstrate continuous lawful use. Information that could be submitted to demonstrate this can include the combination of the following:
- Copies of leases
- Electricity/gas bills for the six month period
- Business rate/council tax bills and payments. Note: The Local Planning Authority does not have access to this information as it is data protected
- Where an informal arrangement exists, redacted bank statements should be submitted to show to show rent has been paid
- Confirmation from a letting agent/solicitor advising of the period of occupancy
- An affidavit
The council will require further evidence of continuous use if it is not evident from the information supplied and will not consider the existing floor area as deductible floor area unless the applicant demonstrates this.
Current indexed CIL rates are detailed in the Charging Schedule.
How is Gross Internal Area calculated?
Gross Internal Area (GIA) measured to the internal face of the perimeter walls of each floor of the building, including circulation and service space such as corridors, storage, toilets, lifts etc and the existing floor space of a building. Generally, any structure with 3 or more walls and a roof is considered to be ‘internal’ floor space and therefore chargeable. Buildings ‘into which people do not normally go’ are exempt from CIL. These include buildings into which people go intermittently for the purpose of inspecting or maintaining fixed plant machinery.
The change of use of a floor space where a self-contained residential unit will be formed is also chargeable if the existing continuous use cannot be demonstrated.
If the CIL process is correctly followed, the first payment is due within 60 days of works commencing. Payments are in instalments in accordance with our revised instalment policy which took effect on Monday 23 September 2019. To take advantage of phased payments you must have submitted an Assumption of Liability Form to the planning department prior to commencement of development. Failure to do this, or failure to make a payment, will result in the full Cil amount being payable immediately with the possibility of further surcharges being applied. Surcharges
The Demand Notice will detail how and when to make payments.
The council may accept the provision of infrastructure and/or land transfer to pay all or part of the CIL liability, known as 'payment in kind'. If an applicant wishes to pay CIL in this way, they should discuss this with the relevant planning team at the earliest opportunity, preferably as part of pre-application discussions. Further detail is contained in the Payment in Kind policy.