Community Infrastructure Levy (CIL)
The Community Infrastructure Levy (CIL) helps support new infrastructure such as schools and roads as well as improving existing facilities. It’s a charge that local authorities in England and Wales can require for most types of new development.
CIL charges are based on the size, type and location of the proposed development. It’s charged on most developments which create additional floor space of more than 100m2 or involves a new dwelling even if it is less than 100 m2
There are exemptions for self-build residential development, including annexes and extensions. These are subject to a number of criteria and only on developments that have not already been started.
Get in touch with us as early in your project planning as you can with any queries about CIL. Email us at email@example.com or call us on 01636 650 000.
Read the full CIL Regulations on the government’s website.
CIL in Newark and Sherwood
CIL was introduced at Newark and Sherwood District Council on 1 December 2011 and a Community Infrastructure Levy Charging Schedule (PDF File, 369kb) came into force on 1 January 2018.
The CIL indexation rate to be used as part of the CIL calculation for 2022 is 332. This is provided by RICS.
CIL may have to be paid if planning permission is granted for your proposal. It’s charged in £ per m2 of the Gross Increase in Area (GIA) of floorspace in your development. A definition of GIA can be found on the Royal Institute of Chartered Surveyors website.
The amount will depend on:
- where the development is within the district
- the use proposed
- the amount of floorspace created
- the amount of floorspace lost
What is CIL used to fund?
CIL will be used to fund strategic infrastructure within the district. That means improvements to the highway network made necessary by the growth of the district up to 2033 and which cannot be attributed to the development of any one site, as well as contributions to secondary school provision within the district.
The Council prepares an annual infrastructure funding statement, which providing a breakdown of CIL receipts and developer contributions collected, retained and expenditure during the previous financial year, as well as a list of future infrastructure projects which may be funded through planning obligations. Prior to 2019 the Council was required to monitor CIL separately and this was included in our annual monitoring report.
What developments are liable for CIL?
CIL may be payable on any development which creates additional floor space of more than 100m2. The 100m2 limit does not apply to new houses or flats and a charge can be levied on a single house or flat of any size, unless it is built by a self-builder.
What developments are exempt from CIL?
The following will not pay the levy, although in some cases you’ll need to make an application for exemption:
- developments of less than 100m2 — unless this is a whole house, in which case the levy is payable
- buildings into which people do not normally go - see regulation 6(2)
- buildings into which people go only intermittently for the purpose of inspecting or maintaining fixed plant or machinery - see regulation 6(2)
- structures which are not buildings, such as pylons and wind turbines
- specified types of development which are ‘zero’ rated in the charging schedule
The following can be subject to an exemption or relief where the relevant criteria are met and the correct process is followed:
- self-build – houses and flats, which are built by self-builders where an exemption has been applied for and obtained prior to commencement of the development
- residential annexes and extensions – where an exemption has been applied for and obtained prior to the commencement of the development
- social housing – that meets the relief criteria are set out in regulation 49 or 49A (as amended by the 2014 Regulations) and where an exemption has been applied for and obtained prior to commencement of development
- charitable development that meets the relief criteria set out in regulations 43 to 48 and where an exemption has been applied for and obtained prior to commencement of the development.
Where an exemption or relief has been obtained for self-build housing, residential annexes, social housing or charitable development, it is important to note that a commencement must be submitted prior to development commencing. If a commencement notice is not submitted in time, the charging authority must impose a surcharge equal to 20% of the notional chargeable amount, capped at £2,500. The charging authority only has discretion to waive the surcharge if it is less than any reasonable administrative costs which it would incur in relation to collecting it. A commencement notice is not required for a residential extension exemption permitted after 1 September 2019. This includes:
- vacant buildings brought back into the same use - see regulation 40 as amended by the 2014 regulations
- development proposals that already have planning permission when a CIL charging schedule comes into force are not liable for CIL (however, if proposed developments with planning permission are not started within the time limit set out within the planning permission decision notice, any subsequent renewal or amendment applications will be liable to CIL if by that time a CIL charging schedule has been adopted)
- where the levy liability is calculated to be less than £50, no levy is due
- mezzanine floors of less than 200m2 inserted into an existing building, unless they form part of a wider planning permission seeking to provide other works as well
All CIL exemptions must be applied for before work begins. CIL exemptions are not automatic and cannot be applied retrospectively. To claim social housing relief or charitable relief you’ll have to submit a request for claiming exemption or relief and have it approved before development starts.
There's more detailed information about the requirements and process for obtaining relief from payment in the CIL guidance document on the government website.
If you’re building your own home, or have commissioned a home from a contractor, house builder or sub-contractor, you may be exempt as a self-builder. To claim the exemption you must own the property and intend to occupy it as your principal residence for a minimum of three years from the date a building control completion certificate is issued.
Community group self-build projects also qualify for the exemption where they meet the required criteria.
There may also be an exemption if you extend your homes or build a residential annexe, provided that they meet the criteria laid down in Regulations 42A and 42B. Submit a self-build annexe or extension claim form before you start work.
How do I apply for self-build exemption?
Find out more details of the specific requirements to qualify for self-build exemption and the procedures to follow to claim it on the Planning Portal website.
- Apply before you start work by submitting a self-build exemption claim form (Part 1), together with an assumption of liability notice
- Send us a commencement notice after relief is granted but before you start work
- Submit a self-build exemption claim form (Part 2) within six months of completing your home - if the evidence is not submitted to the collecting authority within this time, the full levy may become payable
Planning application stage
So that we can decide if your development is liable for CIL and how much, you should complete and submit the Newark and Sherwood CIL form (PDF File, 704kb) with your planning application.
You can find additional guidance on completing the CIL form on the Planning Portal.
Planning decision stage
If planning permission is necessary, or permission is granted for development by way of a general consent, we need the developer, landowner or another interested party to assume liability for payment of the CIL.
Assume liability for CIL on your development (PDF File, 456kb) by completing and returning this form. It must be submitted before development starts, otherwise the charge will automatically default to the owners of the land and surcharges may apply.
When planning permission is granted and where CIL is due, we’ll issue a CIL liability notice alongside the planning decision notice, confirming the amount payable.
Commencement of development
At least one day before development starts you must complete and submit a commencement notice stating when you intend to start work on the development. Once we’ve received this we’ll issue a demand notice setting out the payment required and the instalments for each payment (if applicable). The instalment policy can be viewed as part of the charging schedule (PDF File, 455kb).
If you fail to make the payments or to complete the required forms before starting, you may be liable to enforcement action. This may result in a prosecution and CIL liability is held as a charge on land and leaving it unpaid may make it difficult to sell your land or property.
For more information visit our CIL Enforcement page.
Since April 2013, permitted development (development where planning permission is not needed) may be of a sufficient scale to be liable for CIL.
If this is the case for your development, you must send us a notice of chargeable development before work starts. The CIL charge will then be calculated and applied as though planning permission had been issued.
We may also advise if CIL is payable when dealing with do I need planning permission requests and as part of our planning enforcement process.
Appeals can be lodged against some aspects of a levy charge. You might want to appeal if you believe that we incorrectly:
- calculated the amount of CIL. Before making the appeal, you must request an internal review by the council . You can do this by submitting a Request for Review of Chargeable Amount (PDF File, 463kb)
- apportioned liability between landowners
- determined charitable relief
- determined that the residential annexe was not wholly within the grounds of the main dwelling
- determined the value of exemption allowed for self-build
- applied surcharges
- deemed the development to have commenced when it did not
- issued a stop notice for non-payment
CIL review (2017)
The Council completed a review of its Community Infrastructure Levy (CIL) in 2017. The process involved consultation on our charges, an independent examination and approval at full Council. We then adopted our current charging schedule from 1 January 2018.
Read the CIL Examiners Report (PDF File, 205kb).