THE LEEDS COMMUNITY INFRASTRUCTURE LEVY
DETAILED GUIDANCE NOTE
This guidance note is a simplified version of the Community Infrastructure Levy Regulations
2010 (as amended) and Leeds City Council advises those needing a detailed point of clarity
to read the Regulations fully or seek professional advice.
The National Planning Practice Guidance on the Community Infrastructure Levy, and the CIL
Regulations can be viewed from the following links:
http://planningguidance.communities.gov.uk/blog/guidance/community-infrastructure-levy/
• Community Infrastructure Levy Regulations 2010:
http://www.legislation.gov.uk/uksi/2010/948/contents/made
• Community Infrastructure Levy (Amendment) Regulations 2011:
http://www.legislation.gov.uk/uksi/2011/987/contents/made
• Community Infrastructure Levy (Amendment) Regulations 2012:
http://www.legislation.gov.uk/uksi/2012/2975/contents/made
• Community Infrastructure Levy (Amendment) Regulations 2013:
http://www.legislation.gov.uk/uksi/2013/982/contents/made
• Community Infrastructure Levy (Amendment) Regulations 2014
http://www.legislation.gov.uk/ukdsi/2014/9780111108543/contents
• Community Infrastructure Levy (Amendment) Regulations 2015
http://www.legislation.gov.uk/uksi/2015/836/contents/made
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What is the Community Infrastructure Levy? How is it different from the current system?
When did it come into effect?
Who has to pay the levy?
What kinds of buildings are liable for the levy?
How is the floorspace of new buildings measured?
How does the CIL relate to planning applications and other development consents?
After I have started construction do I have to pay the CIL twice if my scheme changes
and needs a new planning permission?
When does a development have to pay the levy?
How was the CIL developed in Leeds?
What are the CIL rates in Leeds?
How long are these CIL rates fixed?
How does the Community Infrastructure Levy collection process work and what forms do
I have to submit?
What happens if I don’t pay what I owe after receiving the Demand Notice?
Can I appeal against the CIL charges?
Can the levy be paid ‘in kind’ by land or infrastructure rather than in cash?
What will the CIL be spent on in Leeds and how does it relate to other developer
obligations (S106s) and the Regulation 123 List?
How does the CIL relate to on-site greenspace policy/contributions?
What is the neighbourhood fund and when is it paid over by the City Council?
The development is for a change of use of an existing building, or the site contains an
existing building which is to be demolished, do I have to pay any CIL? Does it matter that
the development includes a listed building?
Does it make a difference if my development includes a listed building?
What forms of relief are available from the Community Infrastructure Levy?
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What relief is available for charities or publicly funded organisations?
What relief is available for social housing?
What is exceptional circumstances relief?
I want to build an extension to my house, or a permanent summerhouse or garage in the
garden - do I have to pay the CIL?
26. I want to build my own home (‘self-build), do I have to pay the CIL?
27. I want to build a residential annex (‘granny flat’) in my garden - do I have to pay the CIL?
28. What is State Aid?
1. What is the Community Infrastructure Levy? How is it different from
the current system?
The Community Infrastructure Levy (called ‘the levy’ or ‘CIL’) allows local planning authorities
to raise funds from developers who are creating new buildings in their area. The funds raised
will go towards infrastructure that is needed to support the growth of the city, such as schools
and transport improvements.
The CIL is applied as a charge on each square metre of certain types of new buildings. It
replaces the current method of seeking pooled contributions from developers, called Section
106 planning obligations. In Leeds these pooled S106 contributions were collected for
greenspace, public transport improvements, education, and public realm in the Holbeck
Urban Village. S106s will however continue to be used for site specific requirements such as
greenspace within the site, or access or nearby junction improvements. Affordable housing
provision remains the same.
2. When did it come into effect?
The Leeds CIL Charging Schedule was adopted by the Council on 12th November 2014, and
charging was implemented on 6th April 2015. It applies to all relevant development permitted
after this date.
3. Who has to pay the levy?
Anyone involved in a development may take on the liability to pay, by submitting the CIL Form 1 - Assumption of Liability. In most cases it will be the developer who has applied for
planning permission, or the landowner. Where more than one person owns the site and they
want to share the liability to pay, the CIL is apportioned between them based on the value of
their proportion of the site. If by the time development commences no one has assumed
liability to pay the levy, the liability automatically defaults to the landowner(s), but they forfeit
the right to pay by instalments. A person may withdraw or transfer their assumption of
liability at any time before commencement by giving notice in writing to the Council. After the
development has commenced, a person cannot withdraw, but instead has to transfer to
another person by submitting a liability transfer notice.
4. What kinds of buildings are liable for the levy?
The levy is payable on new dwellings of any size, and other development where the gross
internal area of a new building or extension or change of use exceeds 100 square metres
(the whole new floorspace is charged, not just the amount over 100 sqm).
The following development is not liable for the CIL:
1. A building into which people do not normally go.
2. A building into which people go only intermittently for the purpose of inspecting or
maintaining fixed plant or machinery.
3. Structures which are not buildings, such as pylons and wind turbines.
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4. A gross internal area of a new building or extension less than 100 sqm (other than where
the development will include one or more dwellings).
5. Change of use floorspace if not also associated with an extension of more than 100 sqm
or the change of use is for a dwelling.
6. Mezzanine floors inserted into an existing building (unless they form part of a wider
planning permission that seeks to provide other works as well).
7. A building for which planning permission was granted for a limited period.
8. The change of use of any building previously used as a single dwellinghouse to use as
two or more separate dwellinghouses.
In addition, subject to various criteria being met the following types of development will not
have to pay CIL but applicants are required to submit relevant information before the
Council can confirm that there is no liability:
9. Houses, flats, residential annexes and residential extensions which are built by ‘self
builders’ (this includes home owners extending their own house).
10. Social housing.
11. Development by charities of their own land to be used wholly or mainly for their
charitable purposes.
12. Development by a predominantly publicly funded or not for profit organisation, e.g. sports
and leisure centres, medical or health services, community facilities, and education.
13. Vacant buildings brought back into the same lawful use.
14. The equivalent floorspace which is replacing an existing building to be demolished, or
change of use of an existing building which is part of a wider scheme (including over
100 sqm additional new floorspace), where part of the existing building has been in
continuous lawful use for at least six months in the three years prior to the development
being permitted.
15. Where the final CIL charge will be less than £50.
5. How is the floorspace of new buildings measured?
The calculation in the CIL Regulations sets out the precise way in which floorspace is
measured for elements such as any discount for existing buildings and the yearly index
changes.
This is reproduced in the Leeds Charging Schedule page 9: see
http://www.leeds.gov.uk/council/Pages/Community-Infrastructure-Levy.aspx
Gross internal floorspace is the area of a building measured to the internal face of the
perimeter walls at each floor level, and should include rooms, circulation and service space
such as lifts and floorspace devoted to corridors, toilets, storage, and underground parking
etc. It is defined by the RICS Code of Measuring Practice (6th Edition, 2007) subject to
exclusions set out within the CIL Regulations. GIA includes:
Areas occupied by internal walls and partitions, columns, chimney breasts, stairwells, lift-wells
Atria and entrance halls (with clear height above), measured at base level only
Internal open-sided balconies and walkways
Mezzanine floor areas with permanent access (subject to exclusion under CIL Regs)
Lift rooms, plant rooms, fuel stores, tank rooms, which are housed in a covered structure of a
permanent nature, whether or not above the main roof level
• Service accommodation such as toilets, showers, and cleaner rooms
• Loading bays, garages and other permanent ancillary buildings
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The following will be excluded from CIL liable floorspace:
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Perimeter wall thicknesses and external projections
External open-sided balconies, covered ways, fire escapes, canopies
Voids over or under structural raked or stepped floors
Temporary structures such as greenhouses and garden sheds
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6. How does the CIL relate to planning applications and other
development consents?
The majority of new development over 100 sqm requires planning permission and so for in
most cases the CIL liability will be managed through the planning application process. The
levy may also be payable on development from other consents e.g. through local planning
orders, and also on permitted development, including where identified through a Lawful
Development Certificate.
Full and Outline Permissions (including retrospective applications)
- Any permissions granted prior to 6th April 2015 were not liable for the CIL. This includes
outline permissions, i.e. later reserved matters stages will not be liable for the CIL if the
outline was granted before 6th April.
- All relevant planning permissions (i.e. as set out in question 4) granted on or after 6th
April 2015 are be liable for the CIL, no matter what date they were originally submitted to
the Council. This includes any appeals allowed by the Planning Inspectorate or the
Secretary of State after this date.
- The liability for outline permissions will be calculated on the day that the final reserved
matter is approved. If an application includes phasing of development, each phase is
treated as a separate development for the purpose of paying CIL.
- It may be possible for a full or outline planning application to be subdivided into ‘phases’
for the purposes of the levy, so that CIL is only liable on each phase as it is developed.
This needs to be specified in the description of development on the planning application
form and you are advised to discuss this with the Council before submission.
Section 73 permission to vary a condition
A condition attached to a planning consent can be amended under Section 73 of the Town
and Country Planning Act. If the S73 permission does not change the liability to the levy,
only the original consent will be liable. If the section 73 permission does change the levy
liability, the most recently commenced scheme is liable for the levy. In these circumstances,
levy payments made in relation to the previous planning permission are offset against the
new liability, and a refund is payable if the previous payment was greater than the new
liability. Where the original planning permission was granted before 6th April 2015, and a S73
permission is granted afterwards, the CIL will effectively only be liable on any additional
floorspace the S73 adds (no 100 sqm threshold).
Permitted development (general consent)
Permitted development is liable for CIL when the development is commenced. The liable
person should submit a C I L - F o r m 5 - n o t i c e o f C h a r g e a b l e D e v e l o p m e n t to
the Council before commencement.
Extension of time (under Article 18 of the Development Management Procedure Order)
Provided the extension of time application meets the requirements of Article 18 of the
Development Management Procedure Order, no CIL is liable. The power to extend a
planning permission does not apply to permissions granted after 1 October 2010.
Lawful Development Certificate
A Lawful Development Certificate (granted under section 191 or 192 of the Town and
Country Planning Act 1990) is often sought to confirm permitted development rights. It does
not by itself trigger the CIL payment because it is not a planning permission but simply
confirms that no further application for planning permission is needed for that development.
So where a Certificate is sought, the normal levy provisions in respect of permitted
development rights apply, and the grant of such a certificate is not relevant to whether or not,
or when, the levy may be payable.
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7. After I have started construction do I have to pay the CIL twice if my
scheme changes and needs a new planning permission?
Payments made for a development that has commenced but has not been completed can be
credited against the levy liability for a revised scheme under a new planning permission (on
the same site). This is known as abatement and is to ensure that the charge is not
inappropriately levied twice. It can also include taking into account the floorspace of a
building which was demolished during the development of a previous scheme. However, no
refund is payable from the Council under the abatement provisions if a later development
scheme has a lower levy liability than the one which was first paid on the site.
8. When does a development have to pay the levy?
Charges are due when a chargeable development is commenced. The definition of
commencement of development is the same as that used in planning legislation, i.e. ‘material
operations’ on the site (see section 56(4) of the Town and Country Planning Act 1990). This
defines a material operation as including any works of construction, demolition, digging
foundations, laying out or constructing a road, or a material change in the use of the land.
Development under retrospective planning permission becomes liable when granted.
It may also be possible for a full or outline planning application to be subdivided into ‘phases’
for the purposes of the levy, so that the CIL is only liable on each phase. This needs to be
specified in the description of development on the planning application form and be clear on
the planning permission. You are advised to discuss this with the Council before submission.
Leeds has an instalments policy for paying the CIL. If the appropriate instalment amount is
not received by the specified date then the whole remaining balance becomes due
immediately, plus interest:
≤ £9,999
£10,000 to £59,999
£60,000 to £99,999
£100,000 to £499,999
≥ £500,000
Due in full within 2 calendar months of commencement
Due in 2 equal instalments within:
3 months of commencement
6 months of commencement
Due in 3 equal instalments within:
3 months of commencement
6 months of commencement
9 months of commencement
Due in 3 equal instalments within:
6 months of commencement
12 months of commencement
18 months of commencement
Due in 4 equal instalments within:
6 months of commencement
12 months of commencement
18 months of commencement
24 months of commencement
9. How was the CIL developed in Leeds?
The Council’s main evidence for the CIL is the Leeds Economic Viability Study (January
2013 plus Update May 2014). Various stages of public consultation were undertaken in
developing the Charging Schedule, as required by the CIL Regulations. The rates were
tested at the Examination hearing on 3rd June 2014 and the Examiner’s report recommended
no substantive changes.
Full Council approved the final Charging Schedule on 12th
November 2014, for implementation on the 6th April 2015.
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10. What are the CIL rates in Leeds?
Development will be charged in accordance with the rates set out in the CIL Charging
Schedule, through the associated calculation set out on page 9 of the Schedule and the zone
maps on pages 12-14. The residential zone map can also be viewed in more detail at:
http://www.leeds.gov.uk/council/Pages/Community-Infrastructure-Levy.aspx
The charges below are index linked so may increase or decrease slightly from 2016.
Type of development in Leeds
CIL Charge per square metre
Residential* – Zone 1
£90
Residential* – Zone 2a
£23
Residential* – Zone 2b
£45
Residential* – Zone 3
£5
Residential* – Zone 4 (City Centre)
£5
Supermarkets** ≥ 500 sqm in City Centre
£110
Supermarkets** ≥ 500 sqm outside of City Centre
£175
Comparison Retail ≥ 1,000 sqm in City Centre
£35
Comparison Retail ≥ 1,000 sqm outside of City Centre
£55
Offices in City Centre
£35
Development by a predominantly publicly funded or
Zero
not for profit organisation, including sports and leisure
centres, medical or health services, community
facilities, and education
All other uses not cited above
£5
*Residential floorspace includes buildings ancillary to dwellings such as garages and
conservatories, if they form part of the same planning permission. For the purposes of the
CIL only, residential floorspace does not include student accommodation.
**Supermarket definition: Larger format foodstores that sell a full range of grocery items and
are shopping destinations mainly used for a person’s main weekly food shop, although
generally they also contain a smaller range of comparison goods.
The Valuation Office Agency provides a number of examples of potential CIL calculations:
VOA - Examples of CIL Calculations
11. How long are these CIL rates fixed?
The Regulations recommend review of the CIL as circumstances change. In Leeds, as well
as future changes in the economy which may increase or decrease viability overall, the
emerging Site Allocations Plan will allocate new development sites on its adoption. Some of
those sites may be large enough that they will have very expensive on-site infrastructure
costs. The viability evidence will need to be reviewed for these sites, which may lead to
future alterations to the CIL Charging Schedule. A formal CIL review is therefore likely to be
in late 2016/2017. The Regulations require any changes to the CIL Charging Schedule to
undergo all the same processes of evidence gathering and consultation/public examination
as has been undertaken for the current Charging Schedule.
12. How does the Community Infrastructure Levy collection process work
and what forms do I have to submit?
Step 1
If the planning application proposal is or may be CIL liable the CIL - Additional Information
Form must be submitted alongside the rest of the planning application information in order
for it to be validated. The CIL - Additional Guidance Note will help you complete
Leeds City Council – CIL Guidance Note - August 2016
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the form. If you tick Section 7b of the Additional Information Form (that the site includes
existing buildings in lawful use for at least 6 months out of the past 3 years) then evidence of
this should also be submitted in order for the application to be validated otherwise they may
not be taken into account in discounting the total CIL payment (N.B. this is not necessary if
the proposal is only for a change of use of an existing building which does not also involve
an extension of over 100 sqm or involve the creation of a new dwelling). This could include
proof of business rates or a statement that the use is evident on site.
or
Where permission is granted for development by a general consent such as via the General
Permitted Development Order or a local development order (rather than through a planning
permission), the developer or landowner should submit a C I L - F o r m 5 - N o t i c e o f
C h a r g e a b l e D e v e l o p m e n t to the Council. This requirement does not apply if the levy
rate for the development is £zero per square metre. If the application includes previous
buildings on the site then evidence of their lawful use for at least 6 months out of the past 3
years must also be submitted otherwise they may not be taken into account in discounting the
total CIL.
If the Council then deems the application not to be liable for the CIL there is no need to
continue to the rest of the steps below.
Step 2
The developer, landowner or another interested party assumes liability for the levy by
submitting CIL - Form 1 - Assumption of Liability. It is best to submit this at validation
although it is not a validation criteria. If it is not submitted prior to commencement then the
default person who will have to pay is the landowner(s). The liability can be transferred to
another person at any time, or withdrawn if before commencement: CIL - Form 3 Withdrawal of Assumption of Liability or CIL - Form 4 - Transfer of Assumed Liability.
Step 3
On granting of planning permission (or on receipt of Notice of Chargeable Development), the
Council issues a CIL Liability Notice to the applicant, the developer, and whoever has
assumed liability for the scheme, which sets out the CIL charge due and details of the
payment procedure. If there are any subsequent changes which requires the CIL liability to
alter, the Council simply sends a new Liability Notice(s) and any previous Notice is
automatically superseded.
Step 4
The following forms of relief are available and the C I L - F o r m 2 - C l a i m i n g
E x e m p t i o n o r R e l i e f and any other relevant form must be submitted and agreed by
the Council before commencement in order to claim any relief:
• Charitable relief
• Social housing relief
• Self build exemption for a whole house
• Self build exemption for a residential annexe or extension
• Exceptional circumstances relief
See the related questions 20-26 for further details as there are detailed considerations
relating to each type of relief, including additional forms to be submitted.
Step 5
Before development starts the relevant person(s) must submit CIL - Form 6 Commencement Notice to inform the Council about the start date of the development. The
Council must receive this notice at least one day before development commences, otherwise
there are financial penalties.
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Step 6
The Council then issues a Demand Notice and an invoice, and whoever has assumed
liability must pay the charge in accordance with the Council’s Instalment Policy.
Step 7
An Information Notice can be sent by the Council at any point in the above stages to gather
further information on a range of aspects of the CIL.
13. What happens if I don’t pay what I owe after receiving the Demand
Notice?
The CIL payment is mandatory and non-negotiable.
If you do not pay on time, the
Regulations require that you will be subject to a penalty, plus you will not be able to pay in
instalments so the total amount will immediately become due. There are strong enforcement
powers and penalties for failure to pay.
Failing to assume liability before commencement
If no-one has assumed liability to pay CIL before the commencement of development (by
submitting the CIL - Form 1 - Assumption of Liability) the Council will impose a surcharge of
£50 per landowner. If the Council has to apportion liability between one or more owners of
the land, there is an additional surcharge of £500 per owner.
Failing to submit a commencement notice before development commences
Failure to submit a ‘CIL - Form 6 - Commencement Notice’ is a surcharge of 20% of the CIL
amount due, or £2,500 if lower.
Failing to comply with an Information Notice
Failure to comply with any requirement of an Information Notice within 14 days of the Notice
being served is a surcharge of 20% of the CIL amount due, or £1,000 if lower.
Failure to pay CIL on time
Interest is charged on late payments at 2.5 percentage points above the Bank of England
base rate. Late payment means that any remaining instalment payments become due
immediately, plus surcharges as follows:
• 5% of the outstanding amount where payment is still overdue after 30 days (£200
minimum)
• Plus a further 5% of the outstanding amount where payment is still overdue after 6 months
(£200 minimum)
• Plus a further 5% of the outstanding amount where payment is still overdue after 1 year
(£200 minimum).
The CIL Stop Notice
Where the Council believes that surcharges will not secure payment of the overdue CIL, a
CIL Stop Notice may be served, which prohibits development from continuing until payment
is made. Continuing to develop in the presence of such a notice is a criminal offence.
Failure to notify of a disqualifying event
When a disqualifying event occurs (e.g. a self-build house is constructed and then sold to a
different occupier within 3 years) the liable person is required to notify the Council. If that
person fails to do so within 14 days of the disqualifying event occurring, there is a surcharge
of 20% or £2500 (whichever is the lower).
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14. Can I appeal against the CIL charges?
The CIL is not negotiable. However, you can appeal against the Council's decision in
relation to your CIL liability if you think a mistake has been made. The main type of appeal is
initially be under Regulation 113 whereby development must not have commenced and a
first review to the City Council must be made within 28 days. This review within the Council
must be carried out by someone who is senior to the person who made the original
calculation, and who had no involvement in that original calculation. A decision must be
issued within 14 days. Any subsequent appeal to the Valuation Office Agency (Reg 114)
must be made within 60 days of the date when the original liability notice was issued. The
appeal can only be made on the grounds that the chargeable amount has been calculated
incorrectly.
It is also possible to appeal on other grounds relating to incorrect calculations of the social
housing or charitable element etc. Further advice on all appeals is at the link: CIL
Appeals
15. Can the levy be paid ‘in kind’ by land or infrastructure rather than in
cash?
Yes, there may be circumstances where the Council and the person liable for the levy both
wish land and/or infrastructure to be provided, instead of money. This should be discussed
with the Council at the earliest opportunity. Such payments need to be made to the same
timescales as for cash payments. However, the Regulations do not allow any infrastructure
to be provided in this way if it is necessary to make the development granted permission
acceptable in planning terms, i.e. the scheme must be able to be granted permission without
the possibility of the infrastructure being provided.
16. What will the CIL be spent on in Leeds and how does it relate to other
developer obligations (S106s) and the Regulation 123 List?
CIL Regulation 59 states that the Council “must apply CIL to funding the provision,
improvement, replacement, operation or maintenance of infrastructure to support the
development of its area.”
The CIL in the ‘neighbourhood fund’ (see question 18 for more details) must support the
development of the local area or any part of that area, by funding “(a) the provision,
improvement, replacement, operation or maintenance of infrastructure; or (b) anything else
that is concerned with addressing the demands that development places on an area.”
The Regulations also set limits on signing of Section 106 Agreements, so that after the 6th
April 2015 income from only five or less S106 obligations can be pooled towards a specific
item or type of infrastructure. This means that the documents which are no longer used for
this purpose (i.e. collecting S106 contributions for an off-site payment) are: SPG11 ‘Section
106 Contributions for School Provision’, SPG4 ‘Greenspace Relating to New Housing
Development’, ‘Public Transport Improvements and Developer Contributions’ SPD, and
‘Holbeck Urban Village Revised Planning Framework’ SPG. Elements of these documents
are still extant under the CIL, i.e. sections relating to design guidance, costs, and broad
planning principles.
S106s continue to mitigate site-specific requirements to make an individual development
acceptable. Regulation 123 requires the Council to set out a list of the infrastructure it may
fund through the CIL, and S106 and S278 agreements cannot then be spent on the
infrastructure on the List (N.B. affordable housing is exempt from the CIL regime and will
continue through S106s as present). The List does not contain spending priorities within it.
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The agreed Leeds Regulation 123 List as at June 2015 is:
- Sustainable transport schemes:
o New Generation Transport (NGT)
o Leeds Core Cycle Network
o The Public Right of Way network
- Leeds Flood Alleviation Scheme (FAS)
- Secondary education
- Primary education, except for large scale residential development identified in the Site
Allocations Plan, which will be expected to provide primary schools either as an integral
part of the development or as the result of no more than 5 separate planning obligations
- Green infrastructure and public greenspace, except for on-site provision required by
Core Strategy policies*
- Community sports facilities
- Cemeteries
- Public realm improvements, except for on-site provision or where this is required as a
direct result of an adjacent development
- District heating networks
- Public health facilities
*For further information on greenspace please see question 17.
The Reg123 List can be changed at any time although it would not be good practice for this
to be too frequent, so it is envisaged that it will be annually reviewed alongside the Authority
Monitoring Report.
The levy is intended to provide infrastructure to support the development of an area, rather
than making individual planning applications acceptable in planning terms. As a result, some
site specific impact mitigation will often still be necessary in order for a development to be
granted planning permission, such as on-site greenspace or drainage, and access/nearby
junction improvements. Under CIL Regulation 122, a Section 106 planning obligation can
only be taken into account when determining a planning application if it is; necessary to
make the development acceptable in planning terms; directly related to the development;
and fairly and reasonably related in scale and kind to the development.
17. How does the CIL relate to on-site greenspace policy/contributions?
Core Strategy Policy G4 ‘New Green Space Provision’ seeks two kinds of provision for
schemes of over 10 dwellings; on-site or contributions of an equivalent value in certain
circumstances. The latter circumstances are currently not met as all of Leeds has some
greenspace deficiency. However, in practice there will be cases where the provision of onsite green space is either not possible or not desirable. In such cases, the greenspace
requirement for each residential unit proposed provides the starting point for an equivalent
contribution in lieu of on-site provision. The CIL rates were found sound on the basis of
viability evidence that accounted for the cumulative cost of Core Strategy policies and so on
this basis, seeking an equivalent contribution to the cost of on-site provision should generate
no greater burden for developers. In other words, the cost to a developer of paying CIL and
laying out on-site greenspace would be the same as paying CIL and paying an equivalent
greenspace contribution.
Legal opinion considers that the reference to “on-site provision required by Core Strategy
policies” in the Reg123 list includes equivalent in-lieu contributions for such on-site
greenspace. Whenever on-site in lieu contributions are agreed, a specific greenspace
project must be specified in the S106 and no more than five obligations can be signed
towards that project, to avoid breaching the five S106 obligations limit.
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18. What is the neighbourhood fund and when is it paid over by the City
Council?
The Regulations require a % ‘meaningful proportion’ of the CIL income generated locally to
be passed to local communities for spending as a neighbourhood fund. The neighbourhood
fund must support the development of the local area or any part of that area, by funding (a)
the provision, improvement, replacement, operation or maintenance of infrastructure; or (b)
anything else that is concerned with addressing the demands that development places on an
area. Point (b) therefore gives a wider remit than the Council’s strategic portion of the levy
which can only be spent on point (a). For instance, point (b) could include affordable
housing, or the costs of setting up a neighbourhood plan. Where development crosses
parish boundaries, each council receives a share proportionate to the amount of the
development within their administrative area. The CIL does not need to be spent directly
within the same area as the development, or in the same parish, as long as the spending will
support the development of that area/parish. The City Council aims that through ongoing
working with communities including through neighbourhood plans, there will be defined local
priorities which are agreed and shared to maximise the benefits of spending the income and
minimise the impact of new development.
Town/Parish Council area
without neighbourhood plan adopted
• 15% of CIL income in that area
• capped at £100 per existing dwelling
(per year)
• given to town/parish council
Non-parished area
without neighbourhood plan adopted
• 15% of CIL income in that area
• capped at £100 per existing dwelling
(per year)
• spent by LCC in consultation with that
community via Community Committee
Town/Parish Council area
with neighbourhood plan adopted
• 25% of CIL income in that area
• given to town/parish council
Non-parished area
with neighbourhood plan adopted
• 25% of CIL income in that area
• spent by LCC in consultation
with that community via
Community Committee
The CIL income received by the City Council between 1st November to 31st March will be
passed over to the relevant parish/town councils (or be available to spend by communities in
non-parished areas) by 28th April, and passed over by 28th October for income received
between 1st April to 30th September.
It must be remembered that there will not be much CIL income for the first few months after
April 2015 due to the time lags between granting of planning applications (plus where some
sites are phased for later years in the Site Allocations Plan), then the time it takes to start on
site, with larger payments via instalments, and then up to 6 months before LCC passes
money over to town/parish councils.
For each year when they have received neighbourhood funds through the levy, parish and
town councils must provide a report of their CIL receipts and spending on their website.
19. The development is for a change of use of an existing building, or the
site contains an existing building which is to be demolished, do I have
to pay any CIL?
Under the CIL Regulations the definition of existing buildings on a site does not include:
- Buildings into which people do not normally go;
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- Buildings into which people go only intermittently for the purposes of maintaining of
inspecting machinery; and
- Buildings for which planning permission was granted for a temporary period.
A change of use of an existing building will not be liable for the CIL if it does not also involve
an extension of over 100 sqm, or involve the creation of a new dwelling. The conversion of a
single dwelling into two or more dwellings, or a vacant building (not abandoned) brought
back into the same lawful use are also not CIL liable. Mezzanine floors inserted into an
existing building are not liable unless they form part of a wider planning permission that
seeks to provide other works as well.
In certain circumstances the floorspace of an existing building on the site can be taken into
account to reduce the chargeable amount. Where part of an existing building has been in
lawful use for a continuous period of at least 6 months within the period of 3 years ending on
the day planning permission first permits the chargeable development, the amount of
floorspace for the CIL charge can be reduced by the amount of floorspace of the original
building. This includes where the existing building is to have a change of use alongside an
extension of over 100 sqm, or be demolished or part demolished.
The existing building has to still be present (i.e. not demolished) on the date of the planning
permission in order for it to be able to be taken into account in reducing the CIL charge. The
only exception to this is in the case of phased reserved matters permissions where it may be
possible to ‘carry over’ floorspace demolished in one phase into another phase.
Where an existing building does not meet the 6 month lawful use requirement, its demolition
is not taken into account. However, any parts of that building that are to be retained for the
new development can be taken into account if the new use matches a use that could have
lawfully been carried out without requiring a new planning permission. (Parts of that building
where the use has been abandoned cannot be taken into account.)
Where the Council does not have sufficient information to establish the gross internal floor
area of an existing building or whether it is in lawful use, the GIA may be deemed to be zero
and therefore the full CIL will be liable. Therefore it is clearly of benefit to provide accurate
and sufficient information for the Council to be able to determine this at the planning
application stage.
20. Does it make a difference if my development includes a listed
building?
No, for the purposes of the CIL any such designation does not affect how much CIL will be
liable.
21. What forms of relief are available from the Community Infrastructure
Levy?
The Regulations require the Council to give relief from paying the CIL in certain
circumstances. People who are an ‘owner of a material interest in the relevant land’ can
claim relief. A ‘material interest’ is a freehold interest, or a leasehold interest which expires
more than 7 years after the date on which planning permission first permits development.
The following forms of relief are available and the C I L - F o r m 2 - C l a i m i n g
E x e m p t i o n o r R e l i e f ’ must be submitted and confirmed before commencement to
claim any relief:
• Charitable relief
• Social housing relief
• Self build exemption for a whole house
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• Self build exemption for a residential annexe or extension
• Exceptional circumstances relief
See the related questions below for further details.
22. What relief is available for charities or publicly funded organisations?
Regulations 43 and 44 of the CIL Regulations set out the conditions that must be met for a
charitable development to be entitled to relief from the CIL:
• The claimant must be a charitable institution and must own the land.
• The chargeable development must be used wholly or mainly for charitable purposes, or
the whole or greater part of the development will be held by the charitable institution as an
investment from which the profits will be applied for charitable purposes.
• The claimant must not own a material interest in the relevant land jointly with a person
who is not a charitable institution.
The C I L - F o r m 2 - C l a i m i n g E x e m p t i o n o r R e l i e f requires the claimant to
demonstrate what its charitable purposes are, e.g. through production of its constitution.
A development will cease to be eligible for charitable relief if the development is
commenced before the Council has both received a Commencement Notice and notified
the charitable institution of its decision.
In addition, the Leeds Charging Schedule sets a zero rate for: “Development by a
predominantly publicly funded or not for profit organisation, including sports and leisure
centres, medical or health services, community facilities, and education.” This means that
the floorspace that is provided is for one of these uses. Therefore it is up to the particular
charity/organisation as to which approach is taken towards the CIL (i.e. via exemption or a
zero rate – a zero rate is generally simpler).
23. What relief is available for social housing?
The Council must give full relief from the levy on all social housing floorspace provided by
the Council or a Private Registered Provider (as long as the relevant forms are received at
the appropriate time). See Regulation 49 in the CIL 2014 Amendment Regulations and
Regulation 4 in the CIL 2015 Amendment Regulations for the detailed description of
dwellings which qualify for social housing CIL relief. In principle, dwellings which meet the
description set out in the Leeds Core Strategy Glossary will be eligible for social housing
relief, this includes social rented, intermediate, and affordable rented. In addition, dwellings
are eligible that are let by landlords (who are not a local housing authority or private
registered provider of social housing) where the dwelling is let at no more than 80% of
market rent (including service charges) to tenants whose needs are not adequately served
by the commercial housing market. Social housing relief includes relief for communal areas
(e.g. corridors in a block of flats), discounted at a pro rata rate by the amount of any nonsocial housing to be granted under the same permission (e.g. private housing or other types
of development).
Regulations 50 to 53 of the CIL Regulations set out the procedures for claiming social
housing relief. It is important to note that unless these procedures are rigorously followed,
development will stop being eligible for social housing relief. For instance, if development
begins without a commencement notice or before the Council has notified the person
claiming social housing relief of its decision, then there is no eligibility for social housing
relief and the full charge plus any surcharge is immediately payable. If a disqualifying event
occurs within seven years (e.g. if the dwelling is sold and the proceeds are not spent on
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another social housing dwelling) then the Council can clawback the amount of CIL it has
given in relief.
To qualify for social housing relief and in submitting the C I L - F o r m 2 - C l a i m i n g
E x e m p t i o n o r R e l i e f , the claimant must:
- Own a material interest in the relevant land (although this doesn’t have to be the exact
area of land on which the social housing will be built); and,
- Have assumed liability to pay the levy for the whole chargeable development (through the
submission to the Council of a CIL Assumption of Liability form prior to the
commencement of the development); and,
- Provide a map showing where exactly the social housing will be built.
The person who submitted the claim will be the initial beneficiary of the social housing relief.
The relief attached to each qualifying dwelling is then transferred to a new beneficiary if the
land on which they sit/will sit is sold before they are ready for occupation. The seller must
notify the collecting authority in writing of the sale, copying this to the buyer (plus the
previous beneficiary of relief for those dwellings if this is not the seller; this is possible
because the previous beneficiary may own a different part of the site). The notification must
give details of the gross internal area of the qualifying dwellings that will be situated on the
land being sold, the location of those dwellings on a map or plan, and the name and address
of the seller, the buyer and the former beneficiary of relief from those dwellings (if not the
seller).
The complexities of land ownership and assumption of liability means that in many cases the
Exemption Form is likely to only be submitted after the grant of the relevant planning
permission.
After calculating the exemption, the Council will issue an updated Liability Notice that
identifies all social housing relief beneficiaries and what relief they benefit from.
24. What is exceptional circumstances relief?
The Council offers exceptional circumstances relief to avoid making individual sites with
specific and exceptional cost burdens unviable (Regulations 55 to 58). However, this policy
will be very rarely used because the Leeds CIL rates have been set to already take into
account viability issues, development costs, and full policy requirements across the District.
This includes that any S106 signed by an applicant reflects the viability of the scheme,
including consideration of the CIL rates applicable at the time.
Please note that the Council also has to be satisfied that the relief would not constitute
notifiable State Aid, i.e. relief can only be given up to 200,000 euros over a rolling three fiscal
year period (gross before tax or any other charge) which applies cumulatively to all public
assistance received by that organisation from all sources across the UK.
The Council may grant full or partial relief from liability to pay CIL if it appears that there are
exceptional circumstances which justify doing so. The Council retains the discretion to make
judgements about the viability of the scheme in economic terms. The Council may also
require demonstration of wider regeneration benefits and/or the need for the applicant to
show that a particular site has to be brought forwards imminently for wider benefit.
Regulations 55-57 set out the requirements for claiming and granting exceptional
circumstances relief. The claim must be from the owner of a material interest in the relevant
land, and a Section 106 agreement must exist on the planning permission. A claim must be
made and approved before the development has commenced. It must be accompanied by:
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a) An assessment carried out by an independent person of the economic viability of the
chargeable development and the cost of complying with the planning obligation (a
person who is appointed by the claimant with the agreement of the City Council and who
has appropriate qualifications and experience).
b) An explanation of why payment of the chargeable amount would have an unacceptable
impact on the economic viability of that development.
c) An apportionment assessment (if more than one material interest in the relevant land).
d) A declaration that the claimant has sent a copy of the completed claim form to the
owners of the other material interests in the relevant land (if any).
If granted exceptional circumstances relief, the development ceases to be eligible for that
relief if before it commences charitable or social housing relief is granted, any part of the site
is sold, or if the development does not commence within one year. If there is a disqualifying
event, the owner of the material interest in the relevant land must notify the charging
authority in writing within 14 days, otherwise there is a surcharge. He or she must also send
a copy of the notification to all owners of material interests in the relevant land.
25. I want to build my own home (‘self-build’), do I have to pay the CIL?
Self-build homes are exempt from the CIL, subject to various criteria. The category of ‘selfbuild’ applies to anyone who is building their own home or has commissioned a home from a
contractor, house builder or sub-contractor (this includes community group self-build
projects). In order to claim exemption from the CIL the owner must submit CIL - Form 7 Self-Build Part 1 Exemption Claim and have it agreed by the Council before commencement
on site. The Council will agree to waive the amount of CIL so that you don’t have to pay any
CIL on your self-build house.
C I L - F o r m 7 - S e l f B u i l d P a r t 2 E x e m p t i o n C l a i m must then be
submitted within 6 months of completing the dwelling, including additional supporting
evidence to confirm that the project is self-build. Completion is defined as the issuing of a
compliance certificate for this development under either Regulation 17 of the Building
Regulations 2010 or Section 51 of the Building Act 1984. If the evidence is not submitted to
the Council within the 6 month time period, the full levy charge becomes payable. This
evidence must comprise:
• Proof of the date of completion - a copy of the building completion or compliance
certificate for the home issued by Building Control.
• Proof of ownership – a copy of the title deeds (freehold or leasehold).
• Proof of occupation of the dwelling as the applicant’s principal residence – a Council Tax
certificate - and two further proofs e.g. a bank statement or confirmation that the applicant
is on the local electoral roll.
• A copy of one of the following:
- An approved claim from HM Revenue and Customs under ‘VAT431C: VAT refunds for
DIY housebuilders’; or
- A Specialist Self Build Warranty; or
- An approved Self Build Mortgage from a bank or building society.
You must then own the property and occupy it as your principal residence for a minimum of
three years after the work is completed. If within the first three years you want to sell or rent
out the property or stop using it as your main dwelling, you can do so but must notify the
Council within 14 days of the sale/rent. The amount of the CIL which was originally waived
is then payable in full. Failure to notify the Council will result in enforcement action such as
payment of a surcharge.
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26. I want to build a residential annex (‘granny flat’) in my garden - do I
have to pay the CIL?
If the development is for a residential annex (i.e. a new dwelling such as a ‘granny flat’)
within the grounds of the main dwelling, you do not have to pay the CIL as long as you
submit the C I L - F o r m 8 - S e l f B u i l d R e s i d e n t i a l A n n e x C l a i m and have it
agreed by the Council before commencement on site. There is no requirement for the
occupier of the annex to be related to the owner of the main dwelling, or to commit to staying
there for a specified period.
However, the annex will stop being exempt if within three years of completion:
• The main house is used for any purpose other than as a single dwelling, or
• The annex is let, or,
• Either the main residence, or the annex, is sold separately from the other.
If within the first three years one of the above events occurs, you must notify the Council
within 14 days of the sale/rent. The amount of the CIL which was originally waived is then
payable in full. Failure to notify the Council will result in enforcement action such as
payment of a surcharge.
27. I want to build an extension to my house, or a permanent
summerhouse or garage or other structure in my garden - do I have to
pay the CIL?
You will need to submit the C I L - A d d i t i o n a l I n f o r m a t i o n F o r m in order for
your planning
application to be valid. On that form you will have to tick whether your proposal is over 100
sqm of floorspace. If it is less than 100 sqm and your house is your main residence you will
not have to pay the CIL or submit any more forms relating to it.
If your proposal is over 100 sqm of floorspace you will also not have to pay any CIL, as long
as you submit C I L - F o r m 9 - S e l f B u i l d E x t e n s i o n E x e m p t i o n C l a i m and
have it agreed by the Council before commencement on site.
28. What is State Aid?
State Aid is of most relevance to the Council’s decision whether to grant exceptional
circumstances relief, but also applies to charitable and other forms of relief. The State Aid
requirements allow small amounts of public funding to a single recipient, called the de
minimis block exemption. The de minimis threshold is set at 200,000 euros over a rolling
three fiscal year period (gross before tax or any other charge). The threshold applies
cumulatively to all public assistance received by the organisation from all sources across the
UK, such as business rates relief. Therefore the threshold does not just apply to each
individual development. Recipients are responsible for keeping records of any de minimis
aid they receive over any rolling three fiscal year period.
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