Updates to the Community Infrastructure Levy came into force this month. A new guide explains the amendments, what they mean and why understanding the CIL is important
The Community Infrastructure Levy (CIL) is a planning charge introduced by the Planning Act 2008 as a tool for local authorities in England and Wales to help deliver infrastructure to support the development of their areas.
It came into force on 6 April 2010 through the Community Infrastructure Levy Regulations 2010. The latest update, the Community Infrastructure Levy (Amendment) (England) (No.2) Regulations 2019, came into force on 1 September.
Why understanding the CIL is crucial
CIL is a real concern for planning advisers and property developers because:
- The CIL charge is a painful financial burden.
- The CIL regime requires a different mindset to planning.
- The CIL regime is unforgiving of mistakes.
- Changes during the course of development risk more than one CIL charge or the loss of an exemption.
- The indexation element in the CIL calculation means future CIL charges will continue to grow significantly so the financial burden for future developments will only get worse.
- Charging authorities are reviewing their CIL rates with a view to increasing those applying to residential developments.
What are the 2019 amendments?
The 2010 CIL Regulations have been significantly amended by the 2019 (No. 2) Regulations from 1 September 2019, but only in England and not Wales. These amendments include:
- Changes to the charging of CIL on section 73 permissions.
- Removal of need to give commencement notice as pre-condition to CIL exemptions.
- Provision for change in exempted developments after commencement.
- Limited carry over of self-build housing exemption to section 73 permissions.
What guidance is available on the new regulations?
To get to grips with the CIL regime and the new amendments, Christopher Cant has updated his guide Community Infrastructure Levy: From the Developer's Perspective (7th Edition). The guide covers:
- All the amendments to the Community Infrastructure Levy Regulations 2010 including those in the 2019 (No. 2) Regulations taking effect on 1st September 2019.
- The court decisions relating to CIL starting with Hourhope and including Orbital v Swindon Council, Giordano v Camden Council, Hillingdon Council v McCarthy & Stone and Shropshire County Council v Jones.
- All statutory appeal decisions to the Valuation Office Agency and Planning Inspectorate.
- Published government material.
- The experience gained over the four years since the last update.
- A new chapter on professional negligence and CIL.
- Wales - as the 2019 (No. 2) Regulations apply only to England and not Wales, the CIL regime discussed in the 6th Edition of the Guide will continue to apply to the three areas in Wales that have introduced CIL.
- Lists of charging authorities and CIL rates - this list has also been updated to 1st September 2019. It now comprises 165 authorities and bodies and is available at the end of the guide or separately on the websites below.
Find a PDF of the CIL guide at 9stonebuildings/community-infrastructure-levy
Christopher Cant is a property specialist at barristers' chambers 9 Stone Buildings. He has over 40 years’ experience in the field of property development. Find more information at christophercant.co.uk and 9stonebuildings.com
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