CIL Surcharges & Other Penalties
The Community Infrastructure Levy Regulations 2010 (as amended) contain enforcement provisions, aimed at ensuring the CIL collection process is adhered to, by giving collecting authorities the power to issue a range of surcharges, stop notices, and recover funds by legal action if necessary.
Collection and enforcement arrangements are supported by the right to appeal certain decisions.
Authorities can charge:
- A £50 surcharge if nobody has assumed liability to pay CIL before the development has commenced
- A £500 surcharge to each relevant person where the authority is required to apportion liability between each material interest in the relevant land
- An amount equal to 20% of the chargeable amount, or £2,500 (whichever is the lower amount), where development starts without the Authority first receiving the Notice of Chargeable Development
- An amount equal to 20% of the chargeable amount, or £2,500 (whichever is the lower amount), where development starts without the Authority first receiving the Commencement Notice
- An amount equal to 20% of the chargeable amount, or £2,500 (whichever is the lower amount), for failure to notify the Authority of a Disqualifying Event, in relation to exemption and relief, within 14 days of the event
- An amount equal to 5% of the chargeable amount, or £200 (whichever is the greater amount), where payment is not received by the end of a period of 30 days, and then if still not received after 6 months another 5% is charged, and a further 5% charge if still not received after 12 months
- An amount equal to 20%, or £1,000 (whichever is the lower amount), for failure to comply with any request from the Authority for further information
Late Payment Interest
Interest must be paid on the relevant amount if it is not received on the day it is due, calculated at an annual rate of 2.5% above the Bank of England base rate.
Warning Notice and Stop Notice
The SDNPA will first issue a Warning Notice if it intends to impose a CIL Stop Notice, and it will do so if the CIL amount has not been paid, and if the Authority thinks it expedient to stop development until the amount has been paid.
It is an offence to contravene a CIL Stop Notice, and a person convicted of an offence under the CIL Regulations (2010) is liable to pay a fine which is determined in court. The Authority can apply to the court for an injunction if it considers it necessary.
Recovery of CIL
Reminder Notice – A reminder notice is served before the Authority applies for a Liability Order, allowing 7 days to pay for the unpaid amount before applying to the magistrates’ court for the liability order.
Liability Order – A liability order seeks to recover the outstanding amount, and an amount equal to the costs incurred by the Authority in obtaining the order. Once the court is satisfied that the amount is payable, they must make the liability order.
Distress – Where a liability order has been made the Authority may levy the appropriate amount by distress and sale of goods of the debtor against whom the liability order was made. If, before any goods are seized (or after goods are seized, but before the sale of any goods), the full amount is paid the Authority must accept this as payment.
Charging Orders – As an alternative to Distress, the Authority can apply to the court for a charging order if the amount owed is more than £2,000.
Charge over land – this applies where the Authority wishes to enforce a local land charge on the chargeable development. If the amount is not received within 21 days of notification of the enforcement the Authority may apply to the court for consent to enforce the local land charge.
Commitment to Prison – In the rare event that the Authority is unable to recover the amounts due it can, as a last resort, apply to a magistrates’ court for the issue of a warrant committing a debtor to prison.
For further information on how and when you can appeal CIL, click on the following link:
Please email us at firstname.lastname@example.org for all CIL related enquiries including planning applications that might attract a CIL payment, the Infrastructure Delivery Plan and infrastructure projects.