Community infrastructure levy

Current status

Peterborough City Council adopted its CIL Charging Schedule and CIL Supporting Policies Document at Full Council on 15 April 2015. This means that a flat fee can be charged for each square metre of floor area in new developments of eligible residential dwellings, supermarkets, convenience retail stores and retail warehouses that get planning permission from 24 April 2015 onwards.



What is the Community Infrastructure Levy?

The purpose of the community infrastructure levy is to raise funds from developers who are undertaking new building projects, to help pay for infrastructure that is needed to support new development. It can be used to fund a wide variety of infrastructure including:

  • transport schemes
  • flood defences
  • schools, hospitals and other health and social care facilities
  • parks, green spaces and leisure centres.

It will replace Section 106 planning obligations for many forms of infrastructure, although Section 106 agreements can still be used for site-specific mitigation measures and for affordable housing provision. 

The Council adopted a Developer Contributions Supplementary Planning Document at Cabinet on 7 April 2015, attached below. This document clarifies how S106 Planning Obligations will be used alongside the Community Infrastructure Levy and what infrastructure will be funded by each mechanism.

Peterborough Developer Contributions SPD

Size: 3.20 MB File format: pdf

How much will I have to pay?

From 24 April 2015 eligible developments will be charged in accordance with the rates/sq m set out in the council's adopted CIL Charging Schedule. These are summarised in the table below:

Development Type Charging Zone
High Medium Low
Market Housing on sites of less than 15 units £140 £120 £100
Market Housing on sites of 15 or more units £70 £45 £15
Apartments on sites of less than 15 units £70 £45 £15
Residential development comprising 500 or more dwellings £0 £0 £0
Supermarkets * £150
Retail Warehouses ** £70
Neighbourhood Convenience Stores *** £15
All other development £0
All charges are £ per sq m and are subject to indexation in accordance with the CIL Regulations
Notes

* Supermarkets are large convenience-led stores where the majority of custom is from people doing their main weekly food shop. As such, they provide a very wide range of convenience goods, often with some element of comparison goods. In addition to this, the key characteristics of the way a supermarket is used include the area used for sales of goods generally being above 500 sq m; the majority of customers using a trolley to gather a large number of products; the majority of customers accessing the store by car using the large adjacent car park provided; and servicing being undertaken via a dedicated service area rather than from the street.

** Retail warehouses are usually large stores specialising in the sale of household goods (such as carpets, furniture and electrical goods), DIY items and other ranges of goods. They can be stand-alone units, but are also often developed as part of retail parks. In either case, they are usually located outside of existing town centres and cater for mainly car-borne customers. As such, they usually have large adjacent dedicated surface parking.

*** Neighbourhood convenience stores are used primarily by customers undertaking “topup” shopping. They sell a limited range of convenience goods and usually do not sell comparison goods. The key characteristics of their use include trading areas of less than 500 sq m; the majority of customers buying only a small number of items that can be carried around the store by hand or in a small basket; the majority of customers accessing the store on foot and as such there is usually little or no dedicated parking; and servicing being undertaken from the street rather than from dedicated service areas.

Can I provide infrastructure instead of CIL?

The Council will allow the payment of CIL by land payments or infrastructure payments and has published a policy to that effect alongside the CIL Charging Schedule. Infrastructure provided will need to be related to the infrastructure in the Council's Regulation 123 List. The value of land or infrastructure will need to be determined by a suitably qualified independent person. The Council is not obliged to accept any offer of payment in kind. The Council’s Payment in kind for land or infrastructure policy and Regulation 123 List can be found in the CIL Supporting Policies Document which was adopted by Full Council on 15 April 2015.

It will be at the Council's discretion to accept any such payment, the Council is not obliged to accept any offer of payment in kind. If you seek to pay CIL in this manner you will need to contact the Council's CIL officer - planningobligations@peterborough.gov.uk

How will the Chargeable Amount be calculated?

CIL charges will be calculated in accordance with CIL Regulation 40 (as amended). The chargeable amount will be equal to the aggregate of the amounts of CIL chargeable at each of the relevant rates as set out in this charging schedule.

The chargeable amount will be index linked using the Royal Institution of Chartered Surveyors’ All-in Tender Price Index figures for the year in which the planning permission is granted and the year in which this charging schedule took effect.

Date of Approval: This charging schedule was approved on 15/04/2015

Date of Effect: This charging schedule will take effect on 24/04/2015


Exemptions and Relief

CIL Exemptions

The regulations provide for a number of types of development that are exempted from payment of CIL. These include:

  • Development proposals (with the exception of developments that create one or more dwellings), which create less than 100 square metres of gross internal floorspace (such as residential extensions less than 100 square metres of new floorspace). Development which creates one or more new dwellings will be charged the Community Infrastructure Levy irrespective of the floorspace created
  • Development of buildings into which people do not normally go (for example wind turbines, electricity sub stations)
  • That part of a building which has been in lawful use[*] for a continuous period of 6 months in the past 3 years. Parts of that building which are to be demolished or re-used can be offset

[*] Definition of lawful use
The definition of lawful use is contained in Regulation 40(11) of The Community Infrastructure Levy (Amendment) Regulations 2014, which states the following: “in-use building means a building which contains a part that has been in lawful use for a continuous period of at least six months within the period of three years ending on the day planning permission first permits the chargeable development”

Relief from CIL Liability

In addition there are some circumstances where you can claim relief from the payment of CIL. These are:

  • Those building their own homes or have commissioned a home from a contractor (Self build relief)
  • A residential extension or annex built within the grounds of your own home (Self build relief)
  • Social housing provided by a local authority, private registered provider and shared ownership dwellings (Social Housing Relief)
  • Development by Charities for charitable purposes (Charitable relief)
  • Exceptional Circumstances Relief - The Council will publish an Exceptional Circumstances Statement on adoption of CIL. In very limited circumstances exceptional circumstances relief may be available from CIL but this may only happen if a S106 agreement has been entered into in respect of the planning permission which permits the chargeable development and the correct procedures in the Regulations are followed.

Instalments policy

The Council will allow CIL to be paid by instalment in accordance with the CIL Regulations. The Council adopted an Instalment Policy at Full Council on 15 April 2015. The Council’s Instalment policy can be found in the CIL Supporting Policies Document. The Instalment policy is summarised in the table below: 

Chargeable amount Number of Instalments Amount or proportion of CIL payable in any instalment/time at which payments are due
£75,000 or less 1 Total amount payable within 180 days of commencement of development
£75,001 - £500,000 3 Instalment 1: 25% of full payment within 60 days of commencement date
Instalment 2: 50% of full payment within 360 days of commencement date
Instalment 3: 25% of full payment within 540 days of commencement date
£500,001 or more 4 Instalment 1: 25% of full payment within 60 days of commencement date
Instalment 2: 25% of full payment within 360 days of commencement date
Instalment 3: 25% of full payment within 540 days of commencement date
Instalment 4: 25% of full payment within 720 days of commencement date
In order to be eligible to pay a CIL liability by instalment, all the relevant forms must be submitted to the Council prior to the commencement of the chargeable development, and all the payments must be made in accordance with this CIL Instalment Policy and Regulatory requirements.

Is my development CIL liable?

Examples of development types that may or may not be CIL liable:

Current Site Completed Development CIL Liable Chargeable Area
Cleared building site

92 sq m new residential dwelling

YES 92 sq m
Single dwelling
(in use)
Single dwelling with a 25 sq m extension NO Not liable as under 100 sq m new build and does not create a new dwelling
Single dwelling
(in use)
Single dwelling (currently 100 sq m) with a 125 sq m extension YES 125 sq m
Cleared building site 2,000 sq m residential, including 40% affordable housing (800 sq m) YES

1,200 sq m

Note: the affordable housing relief (800 sq m) must be applied for and meet certain criteria to be granted

Single dwelling
(in use but to be demolished)

- 125 sq m new development
- 90 sq m original dwelling demolished

YES

35 sq m

Note:not exempt as development comprises of one or more dwellings but charge reduced due to original building to be demolished being in use

Single dwelling
(not in use and to be demolished)
- 125 sq m new development
- 90 sq m original dwelling demolished
YES

125 sq m

Note: not exempt as development comprises of one or more dwellings and no reduction in charge as original building not in use

Single dwelling
(not in use but to be retained)
- 35 sq m new development
- 90 sq m original retained
NO

Not liable as under 100 sq m new build and does not create a new dwelling (but extends an existing one).

Note: Original building not included in calculation as not change of use or to be demolished so does not need permission.

Shop unit (not in use) 98 sq m conversion/change of use of unit to residential YES

98 sq m

Note: No exemption even though under 100 sq m as creating new dwelling. As the unit has not been in use, the floorspace is chargeable.

Shop unit
(in use)
98 sq m conversion/change of use of unit to residential NO

0 sq m so no charge

Note: No exemption even though under 100 sq m as creating new dwelling. However, as the unit has been in use, the floorspace is deductable and so there is no charge in this scenario.

Single dwelling
(not in use)
98 sq m conversion/change of use of unit to retail unit NO Not liable as change of use to non-residential and under 100 sq m new development so minor exemption applies. The fact it has not been in use is not relevant in this scenario.
4,000 sq m offices
(in use)
4,000 sq m conversion of offices to flats NO

0 sq m so no charge

Note: No exemption even though under 100 sq m new development as creating new dwelling. However, as the unit has been in use, the floorspace is deductable and so there is no charge in this scenario.

3,500 sq m business development
(in use but to be demolished)
15,000 sq m new residential
5,000 sq m new business
3,500 sq m original business demolished
YES

12,375 sq m residential.
4,125 sq m business but as zero rate no charge.

Note: The demolished amount is apportioned across the whole development e.g. ¾ development residential, ¼ business; therefore, of the 3,500 sq m demolished floorspace, 2,625 sq m is deducted from residential floorspace and 875 sq m from business.


CIL Calculator

Please note the calculator is for estimates only. Detailed calculations will be carried out by us in accordance with the appropriate regulations

1

Enter a postcode to determine your CIL Charging Zone, you may change this later if you wish and you can find your zone on our map here:

2

What is the total GIA* (sq m) of existing floorspace that has been in a legal use for a period of six months in the last three years that will be demolished?

3

Use the table below to set out the GIA (in a legal use for a period of six months in the last three years) that is a) proposed and b) to be retained for each use, and which will form part of the completed development.

Use Total GIA proposed for this use (sq m) Total GIA to be retained for this use (sq m) GIA* gain (sq m) Chargeable area (sq m) Rate (£/sq m) Charge for this use (£)
Market Housing on sites of less than 15 units
Market Housing on sites of 15 or more units
Apartments on sites of less than 15 units
Strategic Sites (500 dwellings or more)
Supermarkets (500 sq m or more)
Retail Warehouses (500 sq m or more)
Neighbourhood Convenience Stores (less than 500 sq m)
All other development
Total 0 £0

CIL Administration Process

For cases where planning permission is not required (for example permitted development applications) but CIL is payable a Notice of Chargeable Development must be submitted before work starts.

Where your proposed development needs planning permission follow the steps below.

Step 1 - Provide CIL Information

CIL Questions form

Every application for the type of developments specified above must include a completed Planning Application Additional Information Requirement (CIL Questions) form otherwise it will be deemed invalid (from the date CIL is adopted, currently intended 24 April 2015). Supplementary guidelines on completing the form can be found on this page. The information supplied on this form will help the Council determine whether or not CIL is payable, and if it is, a provisional CIL amount.

Where your proposed development falls within one of the CIL Exemption categories (i.e. is creating less than 100 sq m of gross internal area) you will not be required to submit the CIL Questions form. Please note however, that the Council is entitled to request submission of the CIL Questions form if it is not clear from the planning application whether there could be some liability to CIL.

CIL Assumption of Liability form

If you know at this point who the person or party is that will be paying the CIL charge you should also submit an Assumption of Liability form.

We strongly encourage you to do this as early as possible.

Claiming Relief from CIL

If you consider that your development, or part of it, is eligible for relief from CIL you will need to submit one of the following forms, after having submitted an Assumption of Liability form:

Again, we strongly encourage you to do this as early as possible, failure to complete and return the appropriate forms within the time limits specified in the Regulations will result in no CIL relief being granted.

Step 2 - Liability Notice

If planning permission is granted the Council will issue a CIL Liability Notice which will detail how much CIL will be payable.

Step 3 - Commencing Work on Site

Prior to any work starting on site you must have submitted both the:

If you are claiming any relief from CIL (as detailed in Step 1) this must also have been done before work starts.

Failure to do this may result in the loss of the right to payment by instalments (where applicable) and the imposition of a surcharge.

Our Instalment Policy can be found here.

Upon receipt of the Commencement Notice the Council will prepare and send a CIL Demand Notice detailing the amount of CIL payable and when it is due. If no-one has assumed liability to pay CIL before the Demand Notice is issued then the liability defaults to the owner(s) of the land.

If there have been any changes of circumstances regarding the liability of the person or party who has assumed liability to pay CIL you will need to submit either a Withdrawal of Assumption of Liability form or a Transfer of Assumed Liability form before the final payment of CIL is due.


Appealing against the charge

Appeals can be made against some aspects of the Community Infrastructure Levy collection and enforcement system, from the levy collection authority’s calculation of the amount due to any enforcement actions it may take. There are two exceptions where an appeal system does not exist: social housing relief and exceptional circumstances relief.

CIL appeal advice may be found on the Planning Portal CIL Appeal advice pages. A link to the page can be found here

The appeal advice also includes details of how parties may ask for a review of CIL calculations from Peterborough City Council as charging Authority, links to the Valuation Office for further details on how to make formal appeals against calculations and apportionment cases and advice and forms for CIL enforcement appeals to the Planning Inspectorate.