Where CIL is payable, this will be due 30 days from the date of commencement. The Council will issue a Demand Notice and an Invoice to the liable parties. Should the payment not be made by the due date, then surcharges will be applied.
Payment by instalments is allowed where the CIL amount payable is £500,000 or above – see page 5 of the Adopted Charging Schedule November 2015.
Where the CIL amount is below £500,000, the amount is payable in full.
Payment can only be made via BACS or by Debit/Credit card and the invoice number must be quoted. A receipt will be issued following payment of a CIL Invoice.
From 22nd July 2020 the Government have introduced new regulations making it possible to apply to defer a CIL payment subject to a number of criteria. For more information please see our page Paying for CIL and COVID-19
How much will I pay?
Relevant development granted planning permission from the 1st April 2016 will be charged in accordance with the rates set out in the Council’s Adopted Charging Schedule November 2015.
Please note: These rates are reviewed on 1st January each year in line with the Building Cost Information Service (BCIS) All-In TPI Index (taken at November the previous year).
|Development||Residential Higher Band||Residential; Lower Band||Retail Comparison||Retail Convenience|
|Rate at April 2016 per sqm||£200.00||£150.00||£20.00||£100.00|
|Rate at April 2017 per sqm||£210.99||£158.24||£21.10||£105.49|
|Rate at April 2018 per sqm||£235.89||£176.92||£23.59||£117.95|
|Rate at April 2019 per sqm||£232.97||£174.73||£23.30||£116.48|
|Rate at April 2020 per sqm||£244.69||£183.52||£24.47||£122.34|
|Rate at January 2021 per sqm||£243.96||£182.97||£24.40||£121.98|
Note 1: The above rates give a good indication of how much CIL will cost but for a precise figure please use the CIL formula below.
Note 2: Details of where the Residential Higher and Lower Bands can be found in the Adopted Charging Schedule November 2015 – pages 14 to 16
The Formula for calculating CIL is set out below:
CIL Charge = (R x A x Ip) / Ic
Where R= The CIL Charging Rate
A = The Deemed Net Area Chargeable
Ip = The Index Figure for the year in which the planning permission was granted
Ic = The Index Figure for the year in which ‘R’ took effect
R= £150 Lower Residential Rate
£200 Higher Residential Rate
£20 Commercial – wholly or mainly Comparison
£100 Commercial – wholly or mainly Convenience
A = The Net Floor Area
Ip = 2016/17 = 273
2017/18 = 288
2018/19 = 322
2019/20 = 318
2020/21 = 334
2021 = 333
Ic = 273
Worked Example where Planning Application Decision was issued in June 2018
CIL Charge = £200 x 238 sq m x 322 / 273 = £56,143.59
CIL guidance – Penalties, Surcharges and Enforcement
The following sets out the possible consequences of not following the CIL procedures, late and non-payment of CIL as set out in the CIL Regulations 2010-2014.
Failure to assume liability to pay CIL before the commencement of development may result in the Council imposing a surcharge of £50 per landowner subsequently discovered. This surcharge ensures that the costs of establishing the identities of landowners are borne by the liable parties. In addition the liable person will not be able to benefit from the instalment policy (Regulation 80).
If a Disqualifying Event occurs to your Exemption it will become invalid and you must report this event to the Council within 14 days. Failure to notify the Council may result in a surcharge of 20% of the chargeable CIL amount or £2,500 whichever is the lower amount. If development has not commenced on site when the disqualifying event occurs, which has not been reported within 14 days, the surcharge is paid on the commencement of the development.
Where the Council has to apportion liability between one or more owners of the land, we may also impose a surcharge of £500 per owner. This is to ensure the costs of this apportionment are borne by the owners in question. Both these surcharges are in addition to the loss of payment rights that result from failing to assume liability before the commencement of development.(Regulation 81)
Failure to submit a valid Commencement Notice or a Notice of Chargeable Development or failure to notify the Council of a disqualifying event before development commences will result in the Council imposing a surcharge of 20% of the assessed CIL charge due, up to a maximum of £2,500. In addition the liable person will not be able to benefit from the Council’s instalments policy where this is applicable (Regulations 82 to 83).
In addition, any self-build exemption granted before 1st September 2019 will be lost and the full CIL amount will become payable.
Failure to comply with the any requirement of an Information Notice within 14 days of the notice being served, may result in the Council imposing a surcharge. This would be of 20% of the CIL amount due or £1000 whichever is the lower. (Regulation 86)
Failure to pay CIL on time will result in the imposition of late payment interest by the Council at 2.5 percentage points above the Bank of England base rate starting on the day payment was due and ending on the day the unpaid amount is received.(Regulation 87). The Council has no discretion over these charges.
Continued failure to pay CIL by the specified date, may result in the Council imposing one or more late payment surcharges. Such surcharges will be imposed in the following manner (Regulation 85):
- 5% of the outstanding amount where payment is still overdue after 30 days, subject to a £200 minimum;
- 5% of the outstanding amount where payment is still overdue after six months, subject to a £200 minimum;
- 5% of the outstanding amount where payment is still overdue after 12 months, subject to a £200 minimum.
In some cases the Council may believe that interest and late payment surcharges will be ineffective in securing payment of the overdue CIL. In such circumstances, the Council may decide to serve a CIL Stop Notice on the development in question. A CIL Stop Notice prohibits development from continuing until the full CIL payment is made. Continuing to develop in the presence of such a notice is a criminal offence, punishable by potentially unlimited fines. (Regulation 89)
Before serving a CIL Stop Notice however, the Council will first issue a warning to the person liable to pay the amount, the land’s owners, occupiers and all those who will be affected by the notice. It will also post a warning on the site itself. This warning will state that continued non-payment may result in a CIL Stop Notice being issued. It will also set out the amount overdue and the number of days after which a CIL Stop Notice may be served if payment continues to be unpaid. If payment is not made by the end of this period, the Council may serve a Stop Notice, which will prohibit development with immediate effect immediately until payment of the outstanding amount has been received by the Council.
When the liable parties fail to pay CIL the Council may apply for a Liability Order and seek the Court’s consent to seize and sell assets to recover the money due. These assets may include any land that is held. The collecting authority must send notice of its intention to do so beforehand. (Regulations 96 to 98)
Where the liable parties continue to evade paying CIL, the Council can ask a Magistrates’ Court to commit them to prison for no more than three months. To do this, the Council must be able to demonstrate to the Court that it has been unable to recover the CIL amount due by seizing and selling assets and land. (Regulations 100 to 101)
CIL is registered as a local land charge and the charge can be enforced if payment is not received.(Regulation 107)
As soon as practicable after the grant of planning permission the Council will issue the CIL Liability Notice. If you disagree with this Notice you must first request a review under Section 113 of the CIL Regulations within 28 days of the date of the CIL Liability Notice
The first stage of appeal is to send an email stating why you think the Liability Notice is incorrect. Please send this to firstname.lastname@example.org
If this does not resolve the issue an appeal can be made to the Valuation Office Agency (VOA)
The following further Appeals can be made directly to the Valuation Office Agency or the Planning Inspectorate (as appropriate) during the CIL process:
- Chargeable Amount Appeal (Section 114);
- Apportionment of Liability Appeal (Section 115);
- Charitable Relief Appeal (Section 116);
- Exemption for Residential Annexe Appeal (Section 116A);
- Exemption for Self-Build Housing Appeal (Section 116B);
- Surcharge Appeal (Section 117);
- Deemed Commencement Appeal (Section 118);
- CIL Stop Notice Appeal (Section 119).