Who pays CIL, and when?
Who pays CIL?
The responsibility to pay CIL runs with the ownership of the land on which the liable development will be situated. However, others involved in the development, such as developers, may wish to pay. Owners of the land, or other parties, must assume liability for the development and the CIL charge, using the relevant Assumption of Liability forms.
An Assumption of Liability form must be submitted before commencement. The Assumption of Liability form also needs to be submitted before making any claims for relief or exemption. We encourage you to submit the Assumption of Liability Form as soon as possible after receiving your planning approval. Upon receipt, we will acknowledge and issue a Liability Notice setting out the amount you need to pay upon commencement.
Liability can be transferred at any time prior to the final payment being due.
Liability can be withdrawn at any time up to commencement. After commencement, liability can only be transferred.
Multiple parties can assume liability for CIL, but must state the proportion of land which they own so the CIL charge can be shared accordingly.
If no-one assumes liability then payment will default automatically to the owners of the land. If no payment is received, payment can also default to the owners of the land. If the Council have to identify the owners of the land, then we can apply a surcharge.
When is payment due?
If all requirements are met, payment is due within 60 days of the commencement of development, or as set out in the instalments policy. If you need to pay CIL on your development, you must notify us of the development's start date, before you start the development. This is called a Commencement Notice. We will then acknowledge your commencement notice and send you a demand notice stating when you must pay.
Where developments, and the levy, are above a certain size we will allow you to pay in instalments, as set out in the Instalments Policy.
If you don't notify us on time, or at all, then we can apply a surcharge and payment will be due in full, immediately.
How is commencement defined?
Development is classed as commenced in accordance with Regulation 56 of The Town and Country Planning Act 1990 and the definition of 'material operations'. Material operations include the demolition of existing buildings, any work of construction in the course of erecting a building, digging of a trench to contain the foundations, or part of the foundations, laying of underground main or pipes, any operation in the course of laying out or construction of a road, and any change in use of the land which constitutes material development.
Is there any other way to pay CIL?
There may be circumstances where the charging authority and the person liable for the levy will wish land and/or infrastructure to be provided, instead of money, to satisfy a charge arising from the levy. This is known as Payment in Kind, and our Payment in Kind Policy (PDF 87kb) sets out the requirements. More information can be found on the CLG website (external link) or by contacting the CIL Officer.
What happens to the monies I pay?
80% of the monies are retained by the Council to be spent on providing or improving infrastructure.
15% is given as a neighbourhood portion to local councils (parish councils in parished areas or retained and spent by the Borough Council, in consultation with local communities, where there is no parish).
- More guidance on the neighbourhood portion
5% will be used for administration costs.
How can I find out how CIL monies are used?
We are required to produce annual reports detailing CIL receipts and expenditure, including updates to the Infrastructure Delivery Schedule and the Annual Monitoring Report. More information can be found through the Monitoring CIL receipts and expenditure page.
Parish Councils also need to provide annual reports of their neighbourhood receipts and expenditure. These should be published on the individual Parish Council websites, or we can publish copies through our pages.
Does CIL replace S106s?
No, however, with the introduction of CIL, the use of planning obligations (also known as Section 106, or S106, agreements) will be reduced. S106s will be primarily used to deal with affordable housing and with site-specific measures which are required to mitigate the impact of development. They may also be used in circumstances where a development proposal results in the loss of an existing facility or site feature, and we require the replacement of that facility/feature either directly by the developer or through a financial contribution set out in a S106.
We have compiled a list of frequently asked questions. If you can't find the information you are after, check through the FAQs.