Community Infrastructure Levy (CIL)


What is CIL?

CIL is a new planning tax that could potentially add thousands of pounds to the cost of extending your home and business property developments.

This Levy will be imposed by local authorities in England and Wales to raise funds from homeowners and developers alike. Many local councils have already put this scheme into place; with the remainder following suit shortly.

CIL will be charged if a development project increases floor space in excess of 100 square metres. If this occurs, you will be charged for every square metre over the 100 square metre limit. Such rates will be determined by each local authority and not by central government; for example Hammersmith and Fulham council plan to charge £400 per square metre from April 2013.

How is CIL set?

The charging authorities (local councils) will produce a charging schedule – this being a minimum requirement set out by regulations. Here, type of developments will be broken down into differing costing brackets e.g. residential and retail. Councils will also be charging based on the location of a development, this is also explained in the charging schedule.

What does CIL apply to?

  • Domestic extensions if there is an increase in floor space of over 100 square metres
  • Commercial developments if there is an increase in floor space of over 100 square metres
  • New builds – if you possess a barren land space and build a domestic or commercial property on it, you will be charged for every square metre (applies even if below 100 limit)
  • Re-developments – if a building is demolished and a new one is built on that land, the existing floor space will be deducted from overall square metre figure of the new building.

Who pays, when and how?

Payment will be the responsibility of either the homeowner (domestic property) or an organisation (commercial property). Prior to a development commencing the previous must advise the council formally that they are assuming responsibility for CIL; in order to do this a CIL form 1 must be submitted. If this process is followed the responsible party can potentially pay via installments. If they do not, the charge is payable in full.


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