The Community Infrastructure Levy (‘CIL’) is a financial payment which is collected by Councils to assist them in delivering infrastructure (such as roads and schools) to support development of their area. Not all Councils have implemented the CIL; if they have not, then no CIL is payable for development in their area. CIL is charged on new development which is the subject of a planning permission, but it can also be payable on permitted development.
Generally, CIL is payable on new development which creates net additional floor space exceeding 100 square metres. That limit does not apply to new houses or flats, as CIL can be payable on a new house or flat of any size. Exemptions from paying CIL are available, including where a dwelling or flat is built by a ‘self builder’, the requirements for which include that the property must be occupied by the self builder as their sole or main residence for 3 years following completion.
Other exemptions include developments for social housing, charitable purposes and buildings into which people do not normally go. Strict requirements apply with regard to the exemption process, and it is important to obtain expert advice to ensure that you are following the prescribed process.