Most asked: Lillian Wakely, Community Infrastructure Levy Officer
March 29, 2017
Send us your questions about a particular area of work in the National Park to newsletter@southdowns.gov.uk
Answering this month is: Lillian Wakely, CIL Officer for the SDNPA
What is the Community Infrastructure Levy?
The Community Infrastructure Levy (CIL) Regulations, introduced in April 2010, allows local authorities in England and Wales to raise funds from developers who are undertaking new building projects. In most cases gaining planning permission to carry out development will increase the value of the land. At the same time most developments will have an impact on local infrastructure. Through the CIL developers have to give some of this financial gain back to the community in the form of creating new, or improving existing, infrastructure.
I look after a 12C church in the National Park and the small parish has to meet a bill of several thousand pounds in the coming year. The CIL was mentioned to me. I wonder if you could suggest how I could find out whether it applies.
I believe Pulborough Parish Council are developing a Neighbourhood Development Plan, in which case, once the Plan is ‘made’, the Pulborough Parish will be entitled to £25% of CIL monies. Whilst there is no NDP in place, the Parish will be entitled to 15% of CIL monies. The Parish Council must use CIL receipts passed to it to support the development of the local council’s area by funding the provision, improvement, replacement, operation or maintenance of infrastructure.
The South Downs National Park will be charging CIL from 01 April and we will be liaising with Parish Council’s on the spending and allocation of CIL monies in due course.
What development is liable for CIL?
Both residential and large retail developments will be liable for CIL but social housing, charitable and self-build developments can apply to be exempt.
Charges will be calculated based on the Gross Internal Area according to a set per m2 tariff and development will be liable if:
• it is a building which people go into to use and the gross internal area of the new build/extension will be more than 100m2; or
• if one or more new dwellings is created, even where the new build floorspace is less than 100m2.
Developments will not be liable if:
• it is a structure or building into which people do not usually go, or go only intermittently for the purpose of inspecting or maintaining fixed plant or machinery
• it is a change of use with no additional floorspace (provided that no new dwellings are created), and subject to Regulation 40 whereby the floorspace is discounted only if it was in lawful use for at least 6 months out of the last 3 years
• it is a change of use from a single dwelling to two or more separate dwellings;
• if it is social housing, will be used for charitable purposes, or is a self-build (in these circumstances exemption is not automatic and must be applied for).
Do residential extensions or annexes have to pay CIL?
People who extend their own homes or erect residential annexes within the grounds of their own homes can apply for exemption provided that:
• the main dwelling is the self-builder’s principal residence (and they must have a freehold, or leasehold of at least seven years beyond the date which planning permission for the development was granted), and
• the annex is built within the curtilage of the principal residence and comprises one new dwelling, or
• the extension is an enlargement of the principal residence and does not comprise an additional dwelling.
Residential extensions of less than 100m² are already exempt from CIL under the minor development exemption.
It’s important to remember that exemption can be removed if circumstances change.
How will the levy be spent?
Charging authorities are required to spend CIL revenue on the infrastructure needed to support the development of their area. The assessment of ‘need’ will largely be informed by the Infrastructure Delivery Plan (IDP) published by SDNPA alongside. The CIL is intended to focus on providing new or improved infrastructure and should not be used to remedy pre-existing deficiencies unless those deficiencies will be made more severe by new development. Unlike contributions collected through S106 agreements there is no time constraint for spending money collected through CIL.
What counts as chargeable floor space?
Chargeable Gross Internal Area (GIA) is the area of a building measured to the internal face of the perimeter walls at each floor level. This includes, but is not limited to, corridors, storage, toilets, stairs, lifts and garages. The SDNPA uses the SDNPA uses the RICS 6th Edition definition of GIA..
Would CIL be chargeable on a conversion (e.g barn or garage)?
Potentially, a conversion could be liable unless it can be demonstrated that it passes the ‘Vacancy Test’ which means that the building must have been in lawful use for at least a six month period in the previous three years.
How will local neighbourhoods benefit from CIL?
The CIL Regulations 2010 (as amended) state that 25% of CIL funds collected from a development will be passed directly to the parish council in which the development is located, if there is an adopted Neighbourhood Plan in place. The amount is reduced to 15% (capped at £100 per existing house) in areas without an adopted Neighbourhood Plan. The funds are to be spent on infrastructure projects of their choice.