Some types of charitable development are entitled to relief from CIL. This is not automatic and must be applied for. To apply for charitable relief, a charity must be the owner of the land and use the land for charitable purposes.
Regulation 43 of the CIL Regulations (2010) sets out the conditions that must be met for a charitable development to be entitled to mandatory relief. They are:
To apply for charitable relief from CIL:
Where a development is owned jointly by a charitable institution and a private institution, relief will be given to the proportion owned by the charity.
To claim for charitable relief the claim for relief must be submitted using CIL Form 2: Claiming Exemption of Relief (external link). This form must be submitted before development is commenced, and must be submitted by the charitable institution. If there is more than one material interest in the land, each claimant must submit details of the portions they own so that CIL can be split accordingly.
The Council will then assess the claim for relief and notify the claimant(s) in writing of the decision, its reasons for the decision and the amount of any relief granted.
If the development is commenced before the Council has notified the claimant of its decision, then no relief can be given and the full CIL amount will be due. If a commencement notice is not received prior to commencement of the development, then the development will not receive relief and the full CIL amount will be due.
In some cases, a disqualifying event may occur whereby the conditions for granting relief no longer apply and so any relief that was granted on the chargeable development can be "clawed back". There is a seven year clawback period on charitable relief, effective from the date the development is commenced. These events include:
If a disqualifying event occurs before commencement, the relief is cancelled and the full charge is due. However, a new claim from the charitable institution can be made.
If a disqualifying event occurs after commencement, the CIL amount is due.
Whether before or after commencement, where a disqualifying event occurs, a revised liability notice must be issued showing what is payable, and a demand notice must be served to collect the CIL amount due.
You have the right to appeal against a grant of relief. Appeals should be made to the Valuation Office Agency. Further information can be found through CIL Appeals.
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