CIL – The Oft’ Forgotten Planning Expense

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Holly Greenman ( FCG WhiteAvon)

Introduced in 2008 The Community Infrastructure Levy (CIL) is a planning charge on new development, made to the Local Authority on notification that a development has commenced.  The fees go into a pot to be used in the local authority area for infrastructure and community projects.  Not all Local Planning Authorities (LPAs) operate CIL, but for the most-part in England, any development that results in a gross internal area of 100 square metres or more, or creates a dwelling, is potentially liable, and it can be quite the sting in the planning–monster’s tail!

Local Authorities are in charge of setting their rates for CIL.  The usage classes and development types will attract CIL along with suitable time frames for instalment payments.  The charge is index-linked from the year that planning permission is given.  Failure to pay CIL can result in the right to pay in instalments being removed, further fines and even prison sentences.  The charge is non- negotiable and mandatory.

CIL can be due on agricultural buildings, which often fall into a ‘Sui Generis’ use class.  Indeed, buildings granted permission under The General Permitted Development Order can also be liable for CIL.

Fees vary dependent upon where in the country you are, but generally attract a charge of around £50- £90+ per square metre of development.  On a fairly modest 650 square metre barn therefore, the charge would be anywhere upwards of £32,500.  Instalment payments are often only available on charges above £35,000.

There are some exceptions to CIL which are for social housing, charitable development and (most relevant to farmers) self- build housing.  The exemption must be finalised prior to development starting or the exemption status may be lost.  For self- build housing projects eligibility criteria must be evidenced.

Applicants should check with their local authority about potential CIL liability prior to submitting their planning application, and that any Liability Notice from the Council is responded to prior to the development beginning.  It is also really important to review any Conditions or Informative Notes on your Planning Decision Notice for mentions of CIL liability or next steps the LPA may require you to take.

Seek advice from a suitably qualified planning or legal professional if you are in any doubt about where you stand, and ensure you have a good grasp of the cost implications before costing out any project, as the fees associated with CIL can be prohibitive.

Contact Holly at hollygreenman@fcgagric.com or your local FCG Office, for all your planning queries or issues.

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