New builds: Community Infrastructure Levy

The recent imposition of the Community Infrastructure Levy (CIL) means more planning is required for your building developments.

What is the CIL?

A discretionary planning charge, the CIL has been introduced to allow Councils to raise money for infrastructure investment. Deemed a fairer, faster and more certain method for funding infrastructure development, the CIL imposes strict rules on how Councils can apply the funds raised.

Do you have to pay the CIL?

The CIL applies to all new builds which require planning consent – that includes developments that bypass the formal planning process by being general permitted developments. Although the levy is discretionary, changes to current planning laws are encouraging all Councils to adopt the CIL by 2014.

From 1 April 2012 the Greater London Authority (GLA) started charging the CIL.

New builds (new buildings or extensions) are only liable for the CIL if they (a) have 100m2 or more of gross internal floor space, or (b) involve the creation of a new single dwelling (even if it is less than 100m2). However, the gross floor space of any demolished buildings is deducted from the liability for the new build/extension.

How much is the CIL?

Councils cannot charge the CIL until they publish a charging schedule. At this point, many London Boroughs are in the process of developing their schedules: current information is that Kensington and Chelsea and Kingston will likely commence charging the CIL in 2013, while the City of London and Richmond are aiming for adoption in 2014. Westminster Council has no indicated date of adoption. The result is of course that the CIL rates are likely to vary and may also vary between different use classes.

However, the base calculation is the same: the CIL is charged in pounds per square metre on the net additional increase in internal floor space of any given development.

For London, the GLA’s rates are as follows:

Councils issue a charging notice which indicates the amount due. While the fee is due from the date that the development commences, there are situations where the payment itself can be deferred for 60 days. And some Councils might provide for instalment payments.

What happens if you don’t pay?

Minor breaches will result in surcharges for late payments. In more serious situations, a Stop Notice might be issued to stop the development until payment is received, or a Court Order can be sought to seize and sell assets. On summary conviction, the maximum fine is £20,000.

Need more information? Contact us using the details below.

Contact: Stephen Brower on 020 7691 4000 or email:

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