The Community Infrastructure Levy (CIL) is a new levy that local authorities and the Mayor of London can choose to charge on new developments in their area. The money collected will be used to support development by funding infrastructure required in local communities such as new parks, schools, health centres or transport improvements.
CIL provides more certainty and clarity than the collection of planning obligations and will be a significant source of funding for a wide range of infrastructure projects. Section 106 will still continue to operate alongside CIL, to secure affordable housing and site specific infrastructure required to make a planning application acceptable. S106 obligations may still be used for some specific infrastructure projects where appropriate.
Most buildings that people normally use will be liable to pay CIL. CIL will not apply to the following developments:
- Buildings into which people do not normally go and buildings into which people only go intermittently for the purpose of inspecting or maintaining fixed plant or machinery.
- Structures that are not buildings such as pylons and wind turbines.
- Development involving only a change of use where the building or part of the building has been in lawful use for at least 6 months in the 12 months prior to the day planning permission is granted for the commencement of the development.
CIL is only payable for any new build namely a new building or extension that has 100 square metres(sq m) or more of Gross Internal Area (GIA) or involves the creation of a new residential dwelling even if this is smaller than 100 sq m.
Find out more about the definition of Gross Internal Area used to determine CIL.
The GIA of buildings that are to be demolished or buildings that are to change use will be deductible in determining the CIL liability where the buildings or parts of the buildings have been in continuous lawful use for at least 6 months in the 12 months prior to the day planning permission is granted for the commencement of the development.
The regulatory framework providing for the introduction and implementation of the CIL is contained in the Planning Act 2008 and the Community Infrastructure Levy Regulations 2010(as amended).
The Planning Advisory Service (PAS) website provides links to additional government guidance on CIL and also contains a useful set of FAQs which may help answer any further questions.