Further Amendments to the Community Infrastructure Levy Regulations 2010

9th August 2019

In our February newsletter, we reported on the draft proposed changes to the Community Infrastructure Levy (CIL) Regulations, which can be found here. Following consultation, these have been finalised and now come into force on 1st September 2019.

The main changes to be made to the existing CIL Regulations are:

  • Removal of Pooling Restriction: Regulation 123 of the CIL Regulations 2010 will be deleted! The deletion removes the existing pooling restriction for five contributions or more for infrastructure collected through a Section 106 obligation to ensure that development is not frustrated by the Local Planning Authorities’ (LPA) inability to accept suitable mitigation for recognised harm caused by a scheme. This will mean that LPAs will once again be able to collect contributions from various development via S106 to pay for infrastructure. This will also allow both LPAs to use CIL and Section 106 obligations to fund the same infrastructure.
  • Monitoring Fees Reintroduced: LPAs will be able to collect monitoring fees under a Section 106 obligation as long as:
    • It fairly and reasonably related in scale and kind to the development; and
    • The sum to be paid to the authority does not exceed the LPA’s estimate of its cost of monitoring.
  • Reduced Penalty for Late Commencement Notice: The CIL exemption penalty for missing the deadline for filing a commencement notice will be reduced from being the full amount of the CIL to being a surcharge equal to 20% of the notional chargeable amount or £2,500, whichever is the lower amount.
  • Clarification on carry over relief for certain Section 73 permissions: Calculations for CIL liability have been moved into a new schedule within the Regulations and new provisions for the calculation of CIL liability in Section 73 permissions, which amend an existing permission, have been added. Exactly how these operate, will depend on the particular nature of the development changes. There is guidance to applicants relating to whether or not the changes to conditions proposed in the Section 73 application potentially increase or decrease liability.
  • Taking Control of Goods: The Regulations introduce a new procedure for reclaiming CIL debts. This means that enforcement of debt by the charging authority can be undertaken by the seizure of goods.
  • Requirement to Publish a Funding Statement: The Regulations introduce a requirement for the annual publication of an infrastructure Funding Statement by LPAs setting out how developer contributions have been spent. The object of this is to produce a more transparent system of LPA accountability.

The consultation draft circulated by the Government in January had also included the proposal to exempt starter homes for first-time buyers from CIL charges. This proposal has not been carried forward into the new Regulations, although no explanation has been given for this omission.

These changes may lead to some additional costs for developers. The removal of the pooling restrictions for infrastructure contributions collected through Section 106 obligations has the potential for some LPAs to increase the number of infrastructure contributions collected on development. This offends CIL Regulation 123, which currently does not permit pooling of contributions for infrastructure when there are more than five contributions. On the positive side, however, the clarification provided relating to the calculations of CIL liability and capping o penalties are welcome.

For more information on CIL or how the amendments may affect your project please contact us on 01256 766673.

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