The Community Infrastructure Levy (CIL) is a charge on development to help fund infrastructure such as transport schemes and schools which the council, local community and neighbourhoods require to help accommodate new growth from development.
Westminster City Council will implement its CIL charge on 1 May 2016.
The Mayor of London adopted a CIL charge on 1 April 2012 to help meet the cost of delivering Crossrail.
The Mayor’s CIL charge is £50 per square metre of new floorspace in Westminster for all uses except for certain categories of health and education use which have a zero charge. For details of the Mayor’s rates across London have a look at London.gov.uk.
The payment procedure applies for both the mayoral CIL and Westminster CIL.
Developments that create new-build floorspace with a gross internal floorspace (GIA) of 100 square metres or more would be liable to pay both the Mayor’s and Westminster’s CIL. A development involving the creation of a dwelling and new-build floorspace of any size would also be liable to pay both CILs.
Planning permissions for this type of development, including those subject to planning appeals, or enforcement appeals and permitted development, could potentially be liable to pay CIL. Developments granted permission through a general permitted development order may also be liable to pay CIL.
The CIL Regulations 2010 (as amended) contain the formulas used to calculate the applicable CIL charges for each development that is deemed to be liable.
Developers must provide sufficient information to allow the council to determine whether the development is liable to pay CIL and to calculate the charges accurately from the floor areas provided.
All CIL forms are available from the planning portal.
The CIL legislation requires that the above processes must be followed by the applicant or liable party and there are penalties for not doing so. CIL liability must be registered as a land charge and on undertaking the above steps the council will be able to issue a liability notice which will set out the amount of CIL that will be required if the planning permission is implemented. Remember, payment of CIL only becomes due if a planning permission is implemented.
The council will then send a demand notice detailing how to pay and the timeframes in which to make the payments.
The CIL payment process is set out in legislation and must be followed. Financial penalties may be applied for failure to do so.
If a development is liable for the CIL and is commenced, payment is mandatory. There are strong enforcement powers and penalties for failure to pay, including stop notices, surcharges, late payment interest and prison terms.