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CIL is a tariff that local authorities may charge in connection with the grant of planning permission to secure additional funding for infrastructure. Touted as a regime that is fairer and more predictable than individually negotiated obligations under section 106 agreements, it will partially replace them, although both will continue to co-exist. Broadly, government policy is that CIL should support "the development of an area", rather than be aimed at overcoming specific planning concerns relating to the development for which planning permission is sought. The regulations therefore provide that a local authority charging CIL may apply the receipts to many different types of infrastructure, whether or not the need for them arises directly out of the developments providing the funds.
 
Local authorities themselves set the rates they intend to charge, based on the funds they require for infrastructure provision and the amounts they believe can be levied without endangering the viability of different types of development. Charging schedules are first subject to public consultation, then public examination by an independent examiner before they can be adopted.
 
The default liability for paying a CIL charge rests with landowners, defined as freehold owners and those holding a lease with more than seven years to run from the date of planning permission. This primary liability for CIL runs with the land and can be registered as a local land charge. However, other third parties, such as developers, can (and are expected to) assume responsibility to pay the charge. 
 

If any part of a new development is potentially chargeable, it will be important for developers to:
  • check whether a CIL charging schedule is in force in the relevant area at the date of planning permission
  • if CIL is payable, consider who should pay it, and ensure appropriate contractual protection for any landowner with default liability
  • ensure that any planning obligations in a section 106 agreement are not required for infrastructure already funded through CIL

You can also access a swift speed read on CIL liability and the procedure for charging and paying the levy, a short briefing on issues that come to the fore specifically in relation to statutory undertakers and developers of large infrastructure projects (such as ports, rail and power generation), as well as a more in-depth briefing on the policy background of CIL and its place in the planning system.

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Resources

  1. UPDATE – Planning Obligations under the new National Planning Policy Framework (NPPF) PDF - 349 KB
  2. CIL Schedule PDF - 349 KB
  3. The Community Infrastructure Levy: speed read PDF - 725 KB
  4. Background briefing note: CIL PDF - 733 KB
  5. CIL and Infrastructure Development
  6. More about our Real Estate sector

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