The Community Infrastructure Levy (CIL) is a charge which can be levied by local authorities on new development in their area.

The levy will only apply in an area where the local authority has consulted on and approved a charging schedule which sets out its levy rates and has published the schedule of rates on its website.

Scope

Most developments which create net additional floor space of 100 square metres or more or which create a new dwelling are potentially with the scope of the charge. However, exemptions do apply.

Exemptions

There are a number of exemptions from the CIL, which may be available under the following circumstances:

• minor development exemption;

• exemption for residential annexes or extensions;

• mandatory charitable relief;

• discretionary charitable relief;

• mandatory social housing relief;

• discretionary social housing relief;

• self-build exemption (whole house); and

• exceptional circumstances relief.

Details of the nature of each exemption can be found on the Gov.uk website at www.gov.uk/guidance/community-infrastructure-levy#relief-and-exemptions.

Exemptions must be claimed.

Providing information

When applying for planning permission, applicants should submit the Additional CIL Information form (Form 1). Where the levy applies, in most cases it is found by multiplying the additional gross internal area by the rate for the type of development in question.

Ignorance is not bliss

Developers who were unaware of the CIL or who thought erroneously that it did not apply to them may face hefty bills. It is important that the levy is considered at the outset and, where an exemption applies, this is claimed. It is advisable to check your local authority website in advance for details of charges applying in your area. Professional advice should also be sought.

HMRC publish details of CIL appeals, which are available on the Gov.uk website at www.gov.uk/government/collections/community-infrastructure-levy-appeal-decisions. These provide an insight into building work within the scope of the levy and when exemptions apply.