About the Community Infrastructure Levy (CIL)
The Community Infrastructure Levy (CIL) is a tax, introduced by the Planning Act 2008 as a tool for local authorities in England and Wales to help deliver infrastructure to support the development of their area. It came into force on 6 April 2010 through the Community Infrastructure Levy Regulations 2010. New development that creates net additional floor space of 100m2 or more, or creates a new dwelling, is potentially liable for the levy.
CIL in Hertsmere
Hertsmere Borough Council adopted CIL on 17 September 2014, with CIL coming into effect from 1 December 2014. This followed endorsement of the council’s Community Infrastructure Levy Charging Schedule by the planning inspectorate in December 2013. All planning applications determined on or after 1 December 2014 may be liable to pay CIL, in accordance with the below charging schedule.
CIL charging schedule
New development in the categories listed below is potentially liable to pay CIL if it creates net additional floor space of 100m2 or more, or creates a new dwelling.
- Residential Area A (Elstree, Borehamwood, Potters Bar) = £120/m2
- Residential Area B (Bushey, Radlett) = £180/m2
- Retail = £80/m2
- Specialised Accommodation (e.g. Retirement Homes) = £120/m2
- Hotels = £120/m2
It is important to note that CIL rates are subject to indexation. In November of each year, the CIL rate is adjusted based on the national ‘all-in tender price index’, which is published by the Build Cost Information Service (BCIS). Indexation is applied based on the date that planning permission is granted, not the date on which the application is submitted. For example, if you submit a planning application in September 2016 and permission is granted in December 2016, the development will be subject to the indexation rate as at December 2016.
Disclaimer: CIL is a government tax and the Council does not have powers (under the CIL Regulations) to waive any part of a CIL charge, where there has been noncompliance. Failure to read and comply with the CIL Regulations 2010 (as amended) may result in substantial financial cost being incurred by yourself or your client. Please read the Key Points section very carefully.
Key points to remember
- You will need to inform the council of the commencement date before a development which is CIL liable can start. Failure to inform us of this (using CIL Form 6) will result in the CIL charges becoming payable immediately.
- Once you have received confirmation that the CIL Commencement Notice (form6) has been received, you may commence development.
- You will need to provide a current address as well as telephone contact details for yourself or your agent.
- If you are the agent, CIL information needs to be passed onto the applicant in a timely manner. If you are not the agent, or have no contact with the relevant parties, please contact us immediately on receipt of any CIL documents, if you believe they may have been sent in error.
CIL is liable on all developments (including extensions) 100sqm or over (Gross) of ‘new build’ floor space (measured in Gross Internal Area) – even if the scheme is permitted development! However, mezzanine floors and change of use applications do not attract CIL, unless a new dwelling is being created.
All new housing units, including where created through change of use, permitted development, or an extension to an existing building will be liable for CIL - even if under 100m2.
- Gross floor space is measured on the ‘Gross Internal Area’ (GIA – the area inside the external walls, including corridors) of the development proposed. If there is demolition, this is factored in to the CIL calculation, as CIL is only payable on the net increase in floor space.
Important note to agents:
For information, the CIL notices are served to the appointed agent, where one has been provided. We are aware that the final liability lies with the applicant. However, the agent will usually be the one coordinating the works and is therefore responsible for submitting all CIL forms as well as acting in compliance with the CIL Regulations 2010.
Where contact details for an agent have been provided with the planning application, we will not contact the applicant directly. The applicant will only be contacted directly if no agent has been provided or if further instructed to do so. In which case, contact address, as well as telephone contact details for the applicant will need to be provided.
Consequences of failing to follow the CIL Regulations
It is important for applicant’s or agent’s to note that their failure to follow the requirements within the CIL Regulations will result in the Council imposing surcharges on the CIL Liability for the development approved in accordance with Part 9, Chapter 1 of the CIL Regulations. In addition, if these measures are unsuccessful in making the applicant or agent follow the procedures within the CIL Regulations it may be appropriate for the Council to serve a CIL Stop Notice on the development and/or apply to the Magistrates Court for a Liability Order. Failure to comply with CIL Stop Notice or a Liability Order is a criminal offence which could result in an unlimited fine or imprisonment of liable parties.
Full details of the Council’s approach can be found by clicking on this link.
The council maintains a Community Infrastructure Levy (CIL) database. All CIL liable and CIL exempt applications are placed on the Local Land Register, as a Local Land Charge. A CON29 search will reveal the planning reference numbers of existing CIL applications, and conveyance solicitors are expected to contact our CIL officer before completing a sales transaction, where there is a CIL encumbrance.
When a property is being resold, we will also need a CIL Transfer of Assumed Liability (Form4) to be completed once the exchange of contracts has been completed. All enquiries should be directed to the Research and Monitoring Officer in the Planning Policy Team: email@example.com.
The below calculator can be used to determine your CIL liability.
CIL calculator (updated November 2016)
What CIL documentation do I need to submit with my planning application?
Planning applications must be accompanied by a CIL additional information form.
If you answer ‘yes’ to any of questions 2(a), 2(b), 3(a) or 3(b) of the additional information form, you should also submit an assumption of liability form with your application. This form should be submitted even if you intend to claim an exemption or relief from CIL.
If you answer ‘yes’ to any of question 4(a), 4(b), 4(c) or 4(d) of the additional information form, you should also submit the relevant exemption/relief claim form with your application. The forms are available here:
CIL relief and exemptions
Some developments may be eligible for relief from CIL. Depending on the circumstances, the following forms of relief may be available:
If you intend to claim relief, it is important that you do so by submitting the relevant form before you start the development. Ideally, the claim form would have been submitted with your planning application. The relevant forms are available here:
If you fail to submit a commencement notice prior to starting works, you will lose eligibility to claim relief.
Householder Applications For Extensions of a Private Home (with the Postscript HSE)
The council implemented the Community Infrastructure Levy (CIL) on 1 December 2014. The council’s Charging Schedule set a CIL rate of either £120 (Area A) and £180 (Area B) per square metre for residential development, including extensions to dwellings. In February 2014, following approval of the council’s CIL charging schedule, by a Planning Inspector, an amendment to the CIL Regulations had introduced an exemption for residential extensions.
Following this, a CIL review was carried out on Householder Applications and it was agreed that the cost associated with administering CIL for small residential extensions exceeded the CIL revenue to be generated by these applications. As a result, a decision was taken by the Executive, on the 13 January 2016, that the council would adopt an approach not to apply CIL to planning applications with the ‘HSE’ postscript. However, the dwelling will have to be the owners main residence, where they will need to be living at the address for a minimum period of three years, once the works have been completed.
How are CIL funds spent?
Local authorities must spend CIL funds on infrastructure needed to support the development of their area. The levy can be used to fund a wide range of infrastructure, including transport, flood defences, schools, hospitals, and other health and social care facilities. However, charging authorities cannot use the levy to fund affordable housing.
A portion of the council’s CIL receipts will be directly passed on to the relevant parish or town council (where one exists). We have prepared guidelines on the distribution of CIL funds that have been passed on to parish and town councils.
A minimum of 50% (inclusive of any parish/town council allocation) will be spent on infrastructure serving the area where the CIL was generated. The remaining funds will be spent on wider infrastructure requirements in the borough.
In accordance with the CIL regulations, we have published a list of infrastructure categories that it intends to fund through CIL.
View the Section 123 List.
As explained below, CIL funds will be allocated based on bids, which will be considered by the council’s CIL Investment Panel.
Bidding for CIL Funds
In Hertsmere, CIL expenditure will be considered by the council’s CIL Investment Panel, who will make recommendations to our Executive group. The panel is a group of cross-borough, cross-party councillors representing each of the borough’s main settlements. Funding decisions will be based on bids from community service providers. Council officers will support the Investment Panel with technical briefings.
Some of the key assessment criteria that will be used to evaluate bids are:
- Is the investment required to enable or mitigate the impacts of growth?
- Does the proposal support any objective of the adopted local plan or any other local investment strategy?
- Would investment lead to potential income generation – such as enabling more CIL liable development to come forward
- Would investment reduce on-going costs placed on the council and local community in the long-term
- What would be the impact if investment was delayed (additional cost)?
- Are there more cost effective options for delivery?
- Does the investment lever in funding from another source?
- Are there other funding mechanisms available that may be available in future?
- How would any future revenue costs associated with the investment be funded?
- How deliverable is the infrastructure scheme?
- Are there risks associated with the infrastructure scheme?
- Are other statutory consents required before the infrastructure scheme could proceed?
Bids will be considered twice per year, in January and July. Bids must be submitted at least six weeks prior to the date of the Investment Panel meeting.
Bids can be made by submitting a CIL bid form, along with any supporting documentation. Before you submit a bid, it is recommended that you contact the council to discuss your project and confirm whether it is eligible/suitable for funding through CIL.
Decisions made by the CIL Investment Panel will be published on this website.
Frequently asked questions
Are loft areas included in the calculation of CIL floorspace?
Loft space that is accessed only by a pull-down ladder is not included as chargeable floorspace. However, loft space that is used as rooms or storage with access via a permanent staircase can be included as chargeable floorspace.
Are external decks included in the calculation of CIL floorspace?
The CIL regulations apply to the “gross internal areas” of a building. External balconies that project beyond the outer walls of a building are not “internal areas” and are therefore not subject to CIL. Generally, any structure with three or more walls and a roof is considered to be ‘internal’ floor space.
Are mezzanine floors included in the calculation of CIL floorspace?
Mezzanine floors inserted into an existing building are not liable for the levy unless they form part of a wider planning permission that seeks to provide other works as well.
How do I pay CIL?
Once planning permission has been granted for a CIL liable development, we will issue a Liability Notice. This will advise how much CIL is to be paid and when it is to be paid. It is important that you submit a commencement notice before you start the development. We will then serve a Demand Notice, which includes payment instructions.
My development is CIL liable - When will I have to pay?
Payment must be made within 60 days of the development commencing. We do not presently have an instalment policy. It is important to note that if the development has commenced, but a commencement notice has not been submitted or nobody has assumed liability, payment is due immediately.
What about S73 applications to vary a condition(s)?
S73 applications only trigger CIL on any additional floor space. If the s73 application does not result in an increase in floorspace, then there will be no additional charge.
My development will result in new floor space of over 100m2. Does CIL apply to all of the new floor space, or only the new floor space over 100m2?
CIL applies to all of the new floor space, not just the area in excess of 100m2. For example, if you propose an extension of 115m2, CIL is calculated on 115m2, not 15m2.
If your CIL question has not been answered above, please get in touch by emailing firstname.lastname@example.org.