CIL charges and calculating CIL
How is CIL calculated?
The amount of CIL you will be liable to pay depends on the size, type and uses of your development.
CIL liability is calculated using the gross internal area (GIA) of the floorspace of all CIL liable buildings within a development. The floorspace is then multiplied by the charge for that use type. Where multiple use types are proposed within a development, the floorspace will be split accordingly by type and then multiplied by the relevant charges. Therefore, this information must be provided as part of your planning application. Failure to provide this information may lead to delays with the processing of your planning application. We will measure and check all plans provided.
CIL includes all floors of a building, not just the ground area. Therefore, if there are three floors of a building each measuring 50sqm, the total liable area will be 150sqm.
The CIL calculations include an index rate. CIL rates are index linked to make sure that the levy rate is responsive to market conditions. The index is calculated to track the change between the rate at the point CIL was introduced, and the rate at the point a planning permission is granted. The index may increase or decrease.
The current index from 1 January 2023 to 31 December 2023 is 1.50 (rounded figure). The index from 1 January 2024 to 31 December 2024 will be 1.61 (rounded figure). This 'CIL Index' is set by the RICS.
CIL is calculated as:
GIA FLOORSPACE X USE CHARGE X INDEX RATE = CIL CHARGE
For example, if you were creating a new residential house, and the current index was 1.5, then the CIL charge would be:
150sqm x £85 (per sqm) x 1.5 = £19,125.00
How we have calculated CIL will be shown on your Liability Notice.
Deductions for existing use
The gross floorspace of any existing buildings on the site that are going to be demolished or reused may be deducted from the calculation of the CIL liability. However, these deductions only apply where the demolition or change of use relates to a building which has been in continuous lawful use for at least six months in the last three years, prior to the development being permitted. In such cases, you must provide evidence of lawful use.
What evidence of lawful use can be used?
The applicant must provide evidence to demonstrate the continuous lawful use. This must include at least two from the list below:
- Copies of leases.
- Electricity/gas bills for the six month period.
- Where an informal arrangement exists redacted bank statements to show rent/rates have been paid.
- Confirmation from a letting agent/solicitor advising of the period of occupancy.
- An affidavit.
We will need further evidence of continuous use if it is not evident from the information supplied. We will not consider the existing floor space as deductible floor space unless the applicant demonstrates this.
Additional information forms
You are required to provide the Council with full information about your development, including proposed and existing floorspace, as well as plans. The Council will check all information supplied and provide you with a liability notice explaining our calculations.
What are the charges?
Rates are applied dependent on the planning use, and the location, of the development, with CIL rates based on financial viability. Types of development that are less viable will have a nil charge.
West Lancashire has two charging zones. Zone B covers most, but not all, of Skelmersdale and Up Holland. Zone A covers the rest of the borough. A map of Zone B, and full information on the charging schedule, can be found in the Adopted Charging Schedule (PDF 1.2mb).
The charging rates, as set out in the charging schedule, are as follows, but will be subject to the latest indexation:
|Zone A (£ per sqm)||Zone B (£ per sqm)|
|Residential dwelling house||£85||Nil|
|Residential apartments (including retirement apartments)||Nil||Nil|
|Agricultural Workers' dwellings||Nil||Nil|
|Retail - Comparison||Nil||Nil|
|Retail - Convenience||£160||Nil|
|Food and Drink (A3/A4/A5)||£90||Nil|
|All other uses||Nil||Nil|
CIL liability will be calculated after planning permission is granted. We will issue you with a CIL Liability Notice, indicating CIL liability and the charge for the development.
What is the difference between liable and chargeable?
A development may be liable for CIL, but not chargeable. This will occur where the development meets the conditions for CIL (liable), but a zero rate applies in the charging schedule and is therefore liable but not chargeable. A Liability Notice will still be issued, but will state a zero charge is due.
What is the definition of Gross Internal Area (GIA)?
Gross Internal Area (GIA) is defined in the RICS Code of Measuring Practice, and is the full enclosed area of a building within the external walls. It includes internal walls, service areas (WCs, showers, changing rooms), lift rooms, plant rooms etc. It excludes things like open balconies and open fire escapes. Refer to the RICS Code of Measuring Practice for details.