Sandwell Community Infrastructure Levy
Community Infrastructure Levy (CIL) planning application information
General information in relation to the CIL Charging schedule and how the money is spent can be found here.
What development will be liable for CIL
The levy may be payable on development which creates net additional floorspace, where the gross internal area (GIA) of new build exceeds 100 square metres, or when a new dwelling is being created. This includes development permitted by a 'general consent' (including permitted development) started on or after 6 April 2010. The 100 square metre limit does not apply to new houses or flats, and a charge can be levied on a single house or flat of any size, unless it is built by a 'self-builder'. Any Prior Approval application submitted should be accompanied by a Form 5: Notice of Chargeable Development.
CIL will apply to all such buildings regardless of the type of planning permission. Outline planning permissions granted after 1st April 2015 will be liable to pay CIL when the development is built, but as the liability is calculated at Reserved Matters stage there is no need to submit any CIL forms with the outline application. If an outline application includes phasing of development, each phase is treated as a separate development for the purpose of paying CIL. As above, the CIL liability for each phase is calculated at reserved matters stage for that phase.
To allow the Council to decide if and how much CIL is liable, all planning applications that comprise any of the following:-
- Development in excess of 100 square metres (GIA);
- The creation of a new dwelling; and
- The conversion of a building.
must be accompanied by a completed CIL Additional Information Form and a completed Assumption of Liability Notice:
Planning application stage
To allow the Council to decide if your development is liable for CIL and if so how much, a completed CIL Additional Information Form and a completed Assumption of Liability form must submitted with your planning application.
Failing to submit this form will delay the validation of your Planning Application and determination of your CIL liability. However, validation of your Planning Application without submission of this form does not necessarily mean that your development is not liable for CIL.
Self-Build Exemptions
Anybody who is building their own home or who has commissioned the construction of their own home, can apply for a self build exemption at any time, as long as their development has not commenced (see regulation 7 of the CIL Regulations as amended and section 56(4) of the Town and Country Planning Act 1990, for the definition of 'commencement of development'). Individuals claiming the exemption must own the property and occupy it as their principal residence for a minimum of three years after the work is completed.
A Self Build Exemption claim form - Part 1 should be submitted prior to development commencing. This should be accompanied by an Assumption of Liability Notice. In addition a Commencement Notice should be submitted prior to commencement, subject to relief being granted. An applicant who fails to submit the commencement notice in time will immediately become liable for the full levy charge.
Within six months of completing the home a Self Build Exemption Claim Form - Part 2 should be submitted. If this is not submitted within the 6 month time period, the full levy charge becomes payable.
A self build exemption is revoked if a disqualifying event occurs during the three year occupance period.
A disqualifying event for self build exemption is:
- any change in relation to the self build housing or self build communal development such that it ceases to meet the criteria set out in regulations;
- failure to comply with the evidence requirements on completions;
- the letting out of a whole dwelling or building that is self build housing or self build communal development; or
- the sale of the self build housing or self build communal development.
Self Build exemption extensions and residential annexes
People who extend their own homes or erect residential annexes within the grounds of their own homes are exempt from the levy, provided that they meet the criteria laid down in Regulations 42A and 42B.
There is no requirement for the occupier of the annex to be related to the owner of the main dwelling, or to commit to staying there for a specified period.
Residential extensions below 100 square metres are already exempt from the levy under the minor development exemption.
A Self Build Annex or Extension Claim Form should be submitted along with an Assumption of Liability Notice. In addition, a Commencement Notice should be submitted prior to commencement, subject to relief being granted.
Social housing relief
Social housing relief is a mandatory discount that applies to most social rent, affordable rent, intermediate rent provided by a local authority of Private Registered Provider, and shared ownership dwellings.
A claimant wishing to apply for social housing relief should use Form 11. To qualify for relief, the claimant must be an owner or a material interest in the relevant land and have assumed liability to pay the levy on the chargeable development. The claimant must provide a map showing where on the chargeable development the social housing will be built, and a 'relief assessment' which is part of the form.
A party claiming social housing relief must submit a commencement notice to the charging authority for a development that is granted relief.
Social housing relief can be withdrawn if a disqualifying event occurs during the seven-year clawback period.
A disqualifying event for social housing relief is:
- If the development begins without a commencement notice;
- If development commences before the collecting authority has notified the claimant of its decision;
- Any change to a qualifying dwelling causing it to no longer qualify for social housing relief;
CIL Planning decision stage
Where planning permission is necessary, or permission is granted for development by way of general consent, Sandwell Council as the collecting authority will expect the developer, landowner or other interested party to assume liability for the levy by submitting an Assumption of Liability Form. It may speed up the process of issuing a liability notice if this is form is submitted before planning permission is granted.
When planning permission is granted for a CIL liable development, the Council will issue a CIL Liability Notice to confirm the amount of CIL payable. It is the responsibility of the person(s) who will pay the charge to serve an Assumption of Liability Notice on the Council prior to the commencement of development. If this does not occur, the charge will automatically default to the owners of the land and surcharges may apply.
At least one day before the approved development commences you must complete and submit a Commencement Notice, stating when you intend to start work on the development. Once the Council has received this form a Demand Notice will be issued, which set out the payment required and the instalments for each payment, if applicable.
If payments are not received in line with the demand notice, or the required forms are not completed and returned to Sandwell Council (the charging authority) prior to commencement of development, enforcement action may be taken, which could prevent stop works on site and result in a prosecution.
Important - CIL liability is held as a charge on land, if CIL is not paid you may have difficulty selling your land or property.
If you still remain dissatisfied with this response
Please refer the following useful guide on how to complete the appeal form here
Other forms:
Permitted development
From April 2013, permitted development (that which does not require planning permission) may be of a sufficient scale to be liable for CIL. It is the responsibility of the developer to serve a Notice of Chargeable Development on the Council prior to the commencement of development. The CIL charge will then be calculated and applied just as though planning permission had been issued.
Consequences of non-payment of CIL
Unlike Section 106 obligations, CIL is non-negotiable. The Government recognises it is important that collecting authorities are able to penalise late payment and discourage future non-compliance. Therefore, the regulations provide for a range of proportionate enforcement measures, such as surcharges and interest on late payments.
A summary of the provisions for surcharges and late payments interest is found here.
Please note that while surcharges etc. will be imposed, the loss of exemptions and relief, and the ability to pay in instalments are significant penalties which will also arise for failure to comply with the relevant notices.
Appeals and enforcement
Appeals, in the first instance can be made against some aspects of the levy charge, for example, if the Council incorrectly calculated the amount of CIL liable to the Development Planning Manager via planning@sandwell.gov.uk.
If you still remain dissatisfied with this response, appeals can be lodged to Planning Inspectorate.
The appeal process is set out in the CIL Appeal Procedure.
CIL is not a negotiated process. If a development is liable for CIL, payment is mandatory, unless a request for relief has been submitted to and approved by the Council. There are strong enforcement powers and penalties for failure to pay, including Stop Notices, surcharges, late payment interest and prison terms.
Important - CIL liability is held as a charge on land, if CIL is not paid you may have difficulty selling your land or property.
If you still remain dissatisfied with this response
Please refer the following useful guide on how to complete the appeal form here
CIL monitoring and reporting
The Council is required to publish an annual monitoring report setting out how much CIL has been collected and how it has been used to fund infrastructure. This report will be incorporated into the annual Authorities Monitoring Report, the first will be for the monitoring year 2014/2015.
Further information
For additional information or any questions you may have about the CIL please email planning@sandwell.gov.uk or call us on 0121 569 4054.