Implementation of the Community Infrastructure Levy
The broad framework for introducing the Community Infrastructure Levy was contained in the Planning Act 2008. The Government has now published detailed proposals for implementing CIL which will come into force in April 2010. CIL is a way of collecting financial contributions from developers to pay for local infrastructure such as roads, schools and flood defences. In brief the proposals are as follows:
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Local planning authorities will have the option to charge CIL or to continue to use existing section 106 planning agreements to obtain developer contributions to local infrastructure;
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There should be an up to date development plan for an area before CIL can be charged in that area;
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The amount of CIL will be based on a formula relating to the size and type of development being undertaken;
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CIL will be paid on commencement of development;
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CIL will be levied on buildings rather than development;
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There will be a de minimis threshold of 100 square metres below which CIL will not be due and householder development will be exempt;
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A new definition of development and of a building for CIL purposes will be introduced by the Government to avoid confusion;
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CIL will be charged on most types of residential, commercial and industrial buildings but not on those types of buildings where the public would not be expected to go ie electricity substations or wind turbines.
The consultation paper entitled “Detailed proposals and draft regulations for the introduction of the Community Infrastructure Levy: Consultation – July 2009” can be found on the DCLG website.
