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Ask the Expert about CIL Payments

18th March 2019

Ask the Expert by Paul Middleton, Partner with Roger Parry & Partners

Q. I’ve been told I have to make a CIL payment to my Local Authority as I’m developing my farm house. What does this mean and what’s it for?

A. CIL (Community Infrastructure Levy) is a payment levied by some Local Authorities on creation of new residential floor space either through a new build, conversion or change of use.

CIL is a big item to consider on a development and it is vital to approach it correctly.  On conversions and change of use it can be reduced or negated by providing evidence that the existing buildings are ‘in use’ and dated photographs are usually best for this.  This can also be the case on new builds that require removal of ‘in use buildings’.

I have just secured a NIL payment on CIL from an initial liability that ran into the tens of thousands for a residential conversion scheme, so correct advise and dialogue with the CIL team can be extremely beneficial.

Tourism schemes in some instances can also be liable for CIL and this can make or break a venture’s viability.

On a permission I secured recently for a log cabin holiday let, the CIL team levied a liability notice for quite a significant sum of money! I successfully argued that the log cabin was compliant with the caravan act and a NIL liability has been granted (the caravan act requires the unit to be delivered to site in no more than two pieces).

Lastly, there has been an exceptional appetite for self-build plots spurred on, no doubt, by the TV programmes which make it sound so appealing!!  As a self-builder, exemption from CIL can be applied for as long as the applicants/owners occupy the completed property for a minimum of three years.  The completion date is crucial here because unless CIL are notified correctly within six months, the whole of CIL Liability is payable!

The CIL charging scheme is here to stay, but there are mechanisms in place which, if applied correctly, can negate or reduce liabilities significantly.

If you need assistance from our expert team please get in touch. Ring me on: 01743 791 336 or visit our website: www.rogerparry.net