Source: http://www.maidstone.gov.uk/home/primary-services/planning-and-building/additional-areas/community-infrastructure-levy
Timestamp: 2020-08-04 17:17:23
Document Index: 555730568

Matched Legal Cases: ['art 8', 'art 1', 'art 1', 'art 2', 'arts 1', 'art 10', 'art 9', 'art 2']

On 25 October 2017 Maidstone Borough Council formally approved its Community Infrastructure Levy (CIL) Charging Schedule at Full Council. It is implemented on planning permissions permitted on and from Monday 1 October 2018.
Exclusions – To be funded through s106 planning obligations, s278 of the Highway Act; other legislation or through planning condition
Health infrastructure including primary healthcare infrastructure and improvements. On or off site health infrastructure facilities required to make the development acceptable in planning terms.
Social and community infrastructure including social care infrastructure, libraries and community facilities On or off site community facilities required to make the development acceptable in planning terms.
Public services infrastructure including police, fire and ambulance service infrastructure and strategic waste management infrastructure. On or off site waste management infrastructure required to make the development acceptable in planning terms.
Strategic green and blue infrastructure measures and improvements. On or off site infrastructure, including open space, improvements and mitigation required to make the development acceptable in planning terms.
Strategic flood prevention and mitigation infrastructure measures and improvements. On or off site infrastructure, improvements and mitigation, including drainage infrastructure, required to make the development acceptable in planning terms.
It's a non-negotiable financial levy we can charge on new floor space to help deliver infrastructure to support development in their area. CIL is levied on each square metre of new floorspace and is measured by the gross internal area (GIA).
What are Maidstone's CIL charges?
Rates are applied depending on the planning use and the location of the development. CIL rates are based on financial viability and have been tested at an independent examination as part of the Charging Schedule setting exercise.
Maidstone's approved charges from 1 October 2018
CIL charge per square metre
These will change annually in line with indexation. For more information on indexation please see Regulation 6 legislation.
Charges for retirement and extra care housing will apply to relevant, liable development within Use Class C3 as defined by the Town and Country Planning(Use Classes) Order 1987 (as amended).
Retirement housing, which is defined as proposals, within Use Class C3, for groups of dwellings that provide independent, self-contained homes, specifically for older people, usually with some element of communal facilities
Extra care housing, which is defined as proposals for dwellings that provide independent, self-contained homes, specifically for older people, with access to 24 hour care and support
The application of charges for retail development will have regard to the principal retail use – be that convenience or comparison – to determine the rate to be applied across all liable retail floorspace. The principal retail use is defined as that which occupies more than 50% of the liable retail floorspace and is reflected in table as “wholly or mainly”. Charges for comparison retail also vary depending on the location of development: development located outside of the Town Centre Boundary will attract a charge, whilst development within the Town Centre Boundary will not.
When did Maidstone start charging CIL?
From Monday 1 October 2018 on all decisions made on and from that date
Any planning decision, including those made on appeal, determined on or after 1 October 2018 may be liable for CIL. The relevant date is the date application is determined, not when it was submitted.
CIL in Maidstone Borough is liable on:
New build residential floor space of more than 100 square metre including retirement and extra care homes, measured by gross internal area (GIA)
The creation of a new dwelling if less than 100 square metre
The conversion of a building to residential that is no longer in lawful use
The creation of more than 100 square metre of new build floor space for retail development
CIL is applicable on all such buildings regardless of the type of planning permission used to grant permission. CIL charges are applicable where planning permission is granted by way of permitted development when a certificate of lawfulness is issued, and prior notification. Generally, any structure with 3 or more walls and a roof is considered to have ‘internal’ floor space and is therefore chargeable.
A change of use of a building that has not been in its lawful use for more than 6 continuous months in the previous 3 years from the date planning permission is first granted is CIL liable. However, the gross internal floor space of any existing buildings on the site that are going to be demolished or reused which have been in their lawful use, may be deducted from the calculation of the CIL liability.
A change of use of floor space where a self-contained residential unit will be formed is also chargeable if the existing continuous use claim (above) cannot be demonstrated.
lf the application is for something that's already been built before 1 October 2018 and is successfully given a lawful development certificate, then this won't be CIL liable. If it's refused, you'll need to apply for retrospective planning permission and submit Form 1: Additional Information form from the Portal. It will then be assessed as if the development hadn't been built.
If the application is to confirm something that meets the CIL criteria and was completed after 1 October 2018, and the use falls within MBC’s CIL Charging Schedule, it will be CIL liable and payment will be due immediately. There would be no 60 day window to pay as it would have ‘commenced’ without a commencement notice. The regulations also state that no exemptions would be allowed.
If the application is for something proposed for the future you can apply for a Lawful Development Certificate. If it's for development which meets the Charging Schedule criteria it'll be CIL liable and you are required to pay before commencement. See Permitted Development below.
If you choose to apply for a Lawful Development Certificate then applicants are required to submit a Form 1 – Additional Information form with their submission. If the development is liable you should also submit Form 2- Assumption of Liability at the same time. We'll then issue a liability notice.
Permitted Development (development that doesn't require planning permission from us) may be CIL liable if it's over 100 square metre. If you intend to commence development under General Consent you must submit a CIL Form 5 - Notice of Chargeable development to us before the development has started. The CIL charge will then be calculated and applied as though we've granted planning permission. Whilst the development may be CIL liable because of its size, it may also be eligible for an exemption.
Are prior notifications CIL liable?
If the Prior Notification application is for approval for the conversion or change of use of a building into a self-contained residential dwelling(s), CIL will be chargeable on the new dwellings. On approval of the Prior Notification, you must submit to us Form 5 – Notice of Chargeable Development before you start development. If you can demonstrate evidence as requested on Form 5 that the building has been in its lawful use (ie its planning use as an agricultural building used for agricultural purposes or a stable for stabling horses) for a continuous period of 6 months in the last 3 years ending on the date of the prior notification approval, then the existing floor space in its lawful use which will be retained or demolished will be deducted from the CIL charge. New floor space added to the new dwelling however will be chargeable. You may be eligible for relief or exemption from CIL, but you must apply for it before starting any work on the development.
Residential extensions over 100 square metre
These types of development are CIL liable but may be eligible for relief or exemption. You must apply for the relief or exemption before starting work on the development. If you've already started work on the development you won't be entitled to either and will have to pay the full CIL amount.
The exemption for self build is only applicable to homes built or commissioned by individuals for their own use. The person building the home must complete an additional form within 6 months of completion and reside in the house, as their main residence for at least 3 years. If you build more than one house, you'll only be entitled to claim the self build exemption on the house you solely reside in. Community group self build projects also qualify for the exemption where they meet the required criteria. The CIL liability will be calculated by us and recorded in case there's a disqualifying event in the future and the CIL payment becomes due.
For further information please see the Government's Guidance pages on CIL.
WARNING- If your Liability Notice was issued on or before 1st September 2019 and a valid Commencement Notice is not submitted to the Council prior to the development commencing, your exemption or relief will be withdrawn OR if your Liability Notice was issued after this date and a valid Commencement Notice is not submitted to the Council prior to the development commencing, the penalty for a late Commencement Notice will be reduced from the removal of the exemption or relief to a surcharge equal to 20% of the chargeable amount or £2500 whichever is the lower amount. For more information visit the relief and exemption pages on the planning portal.
Any development where the gross internal area of the new build is less than 100 square metre. This doesn't apply to the creation of one or more dwellings
Applications which involve only a change of use, conversion or subdivision of, or creation of mezzanine floors within a building which has been in lawful use for at least six months in the 3 years prior to the development being permitted and doesn't create any new build floorspace
Any structure which doesn't have a roof and has less than three walls such as an open balcony and open fire escapes
A building into which people don't normally go, or go only intermittently for the purpose of inspecting or maintaining fixed plant or machinery
Structures which are not a building, such as pylons or wind turbines
Temporary consents and temporary structures aren't CIL liable. These include mobile homes and caravans, and any ancillary buildings required to support them like day rooms
What is not chargeable for CIL?
Development which benefits from a zero or nil charge (£0/m2) as set out in our Maidstone's CIL Charging Schedule
Applications which are determined and planning approval given before to 1 October 2018
Reserved matters applications resulting from an outline planning permission that's been granted before CIL was introduced on the 1 October 2018, are not liable for CIL
Any development where the total chargeable amount is less than £50 deemed as zero rated
Who's liable to pay the levy?
The responsibility to pay the levy rests ultimately with the landowner where the liable development will be situated. Although liability rests with the landowner, the regulations recognise that others involved in a development may wish to pay. To allow this, anyone can come forward and assume liability for the development. However, if no one comes forward it will default to the landowner. We'll send the liability notice to all interested parties.
We offer a pre application service which can include advice regarding CIL. We'll assess your proposal and give advice on any potential CIL liability. For more information visit our pre-application page.
For further information about CIL email us.
The Government has clearly set out the process in the CIL Regulations 2010 as amended, so it is important that this is followed. The process that needs to be followed is summarised below:
The Council requires all planning applications to be submitted with an accompanying Form 1: Additional Information form. Failure to complete and submit this with the planning application will result in the application not being validated. Forms should be submitted via the planning portal with your application.
The form asks for details of the new floorspace to be created by the development and details of any floorspace to be demolished or retained which can be offset against the new floorspace calculation.
Any changes to details supplied on this form (i.e. change of address, email address, phone number etc.) need to be submitted before the development is commenced, again using the form below on the Planning Portal.
Form 1 – Additional Information
View guidance on completing Form 1 - Additional Information
CIL is liable on any planning permission we grant, on Permitted Development, Prior Notification applications which are creating a new dwelling with the Councils approval and applications for lawfulness (Lawful Development Certificates). In these cases, it'll be your responsibility to inform us, using Form 5 – Notice of Chargeable Development before work begins. This form should be used by landowners to notify us of further information relating to the development and to assume liability to pay any CIL due.
Failure to inform us could result in enforcement action being taken and the full CIL liability being payable.
2. We confirm receipt of the additional information form/notice of chargeable development and request further information where needed
3. Our Development Management team will assess the application
During the planning assessment, the floor area may change, in these circumstances a revised Form 1 - Additional Information form should be sent us to reflect these changes and the revised CIL liability. Failure to do so may result in the wrong CIL charge being levied.
4. Applicant informs us who'll be responsible for paying the CIL for the application
We need to know who's liable to pay CIL so we can send the person(s) liable a liability notice.
All planning applications that are CIL liable need to have someone assuming liability for payment. The person who'll be assuming liability for CIL must submit a Form 1 - Assumption of Liability. They don't have to own or have a material interest in the land. Liable parties are encouraged to submit a signed Form 2 - Assumption of Liability form as soon as is practicable. If you know when submitting the planning application who'll be the person or organisation that'll pay the CIL liability, you should submit Form 2 – Assumption of Liability form with the planning application. The assumption of liability form should ideally be sent to us as soon as this person has been identified. A request for Form 2 will be sent out during the assessment process if it hasn't been sent with the planning application.
CIL is non negotiable and failure to complete an assumption of liability form will result in the liability defaulting to the landowner. To assist the process, we've included the Assumption of Liability form on Table 2 of the local validation list. A request for Form 2 will be sent out during the assessment process if it hasn't already been submitted with the planning application.
Form 2 – Assumption of liability
Failure to submit an Assumption of Liability form may incur a surcharge. If we can't recover CIL from a party which has assumed liability or no one has assumed liability, the liability will default to the landowner(s) or anyone who has a material interest in the land.
If at any time during the process and before the commencement of the development, you wish to withdraw or transfer liability for the charge (i.e. if you sell the site) then you need to complete and submit to the Council either:
Form 3 - Withdrawal of Assumption of Liability or Form 4 - Transfer of Assumed Liability
Once liability has been assumed and as soon is practicable after planning permission is granted, we'll issue a Liability Notice to all relevant parties as well as the landowner, if the two are different. The Liability Notice sets out the amount of CIL that is levied on the development. If any changes occur after the Liability Notice is issued, a revised notice will be sent out that will supersede the previous notice. The Liability Notice is a registerable local land charge and will be added to the land charges register until full payment has been received or (where relevant) the disqualifying period has expired.
If you're not satisfied the Liability Notice is correct you can apply for a review. This must be made in writing to the Council within 28 days of the issue of the Liability Notice. Only one review is allowed (see appealing CIL).
7. Claiming relief before starting the work
Relief and exemptions from CIL may be available, but must be applied for before starting any work on the development.
Social housing developments (Form 10)
Charitable developments provided by a charity for charitable purposes (Form 10)
Residential extensions over 100 square metre (Form 9)
Form 10 - Charitable and/or Social Housing Relief Claim Form
Warning: Relief is not automatically available; it must be applied for prior to commencement of development or CIL will be chargeable. Development will cease to be eligible for the exemption if a valid Commencement Notice is not submitted to the Council prior to the development commencing.
The completed form must be submitted to the Council prior to the commencement of development in order to obtain relief or exemption. The Council can not process requests for relief or exemption retrospectively.
The Council will provide a written response to whether the development is exempt and eligible for relief or exemption.
All granted relief or exemptions cease to be eligible for the relief or exemption if a commencement notice is not submitted prior to the development commencing.
If any relief or exemption is granted, where relevant, a revised Liability Notice will be sent out to reflect any changes as a result of the relief or exemption. This will supersede any previous notice sent.
Prior to the granting of any form of relief or exemption the Council will be required to take State Aid Regulations into consideration as this may affect the relief that is available to the applicant. For more information on State Aid visit GOV.UK
Relief or exemptions will be withdrawn where a disqualifying event occurs.
8. We'll confirm that relief or an exemption has been approved
It's crucial that approval is given before work starts on the development. If you do any work on the development before receiving written confirmation from us, any relief or exemptions will be cancelled and you'll have to pay the full CIL amount immediately. There may be additional penalties and surcharges levied for failure to correctly follow the CIL process.
We'll register the relief or exemption on the local land charges register.
9. Informing the Council of Commencement
Once the Commencement Notice has been received, the Council will confirm receipt and issue a Demand Notice. This notice will detail who is liable and for how much. It will also specify how to pay and the dates on which the payments are due, in line with the CIL Regulations 2010 (as amended) Part 8 Section 70 and the Council’s Instalment policy, whichever is relevant.
Ideally this should be online Pay CIL. NB always quote the given reference number from the Demand Notice.
The process and format of the forms is prescribed by the Community Infrastructure Levy Regulations 2010 (as amended), and there are surcharges and penalties if these are not strictly followed and ultimately enforcement action will follow.
The CIL Regulations set out the disqualifying events for each type of relief or exemption. An example of a disqualifying event for self-build exemption or affordable housing relief would be if the dwelling was sold on the open market and no longer used for the purpose for which the relief was granted. For self-build exemption and residential annex exemption, the clawback period is 3 years; for charitable relief and social housing relief the clawback period is 7 years. There is no clawback period for residential extension exemption. In instances of a disqualifying event arising the full amount of CIL will become liable to be paid and additional penalties and surcharges may be levied.
The CIL regulations require the Council to report on CIL collection and spend. The Council will publish this on the Councils CIL webpages by 31 December following the relevant financial year end.
CIL is calculated using the CIL formula, indexation, Maidstone’s charging schedule and any exemptions or relief granted.
The amount of CIL payable will depend on the size, type and use of the development site. This information must be provided as part of the planning application. It is in your interest to submit this form, even if you believe you are not liable, so that the Council can determine whether the development is CIL chargeable and ensure that the CIL charge is calculated accurately as failure to provide this information will mean that the Council will not validate the application. All plans will be checked when submitted.
Gross Internal Area (GIA) measures the internal area of each floor of the building, including circulation and service space such as corridors and includes areas such as storage rooms, toilets, lifts etc. These types of internal communal areas are also included in the calculation as part of the chargeable development, Generally, any structure with 3 or more walls and a roof is considered to be ‘internal’ floor space and therefore chargeable. Gross Internal Area (GIA) is set out in the Code of Measuring Practice produced by the Royal Institute of Chartered Surveyors (RICS).
Can existing uses on the site be deducted from the calculation?
Yes. The gross internal floor space of any existing buildings on the site that are going to be demolished, retained or reused may be deducted from the calculation of the CIL liability. The charge will be based on the floorspace of the new buildings less the floorspace of the demolished or retained buildings, i.e. the net increase in floorspace. However, these deductions only apply where the demolition or retention relates to a building which has been in its continuous lawful use for at least six months in the last three years, prior to when planning permission is granted. The building must also have been in situ at the time.
Applicants must declare on their Form 1 - additional information form submitted with their planning application the amount of floorspace to be demolished and/or retained and what it was used for during the appropriate period. If this is not declared, the Council will assume that any existing buildings on the site are not eligible and will not deduct it from the CIL calculation.
Indexation is for the calendar year from 1st January to end of December. Maidstone's charging schedule ‘takes effect’ from 1st October 2018 so for the period of October through to the end of December 2018 the CIL levy will be as per the agreed charging schedule. Indexation will be added from 1 January 2019 and each subsequent year in the future, the index may increase or decrease. MBC will publish each year the RICS CIL Index figure it will be using for indexation, this will be based on the figure published by RICS on the 4th Monday in October of the preceding year.
Indexation Base Rate - All in Tender BCIS 1 November 2017
All in Tender BCIS
1 October 2018 - 31 October 2018 324
1 January 2019 - 31 December 2019 318
RICS CIL Indexation Rate
1 January 2020 - 31 December 2020 334
What are the CIL charges?
Maidstone’s approved charges from 1st October 2018.
Residential extensions over 100 square metre Form 9
Social housing developments Form 10
Charitable development provided by a charity for charitable purposes Form 10
These types of development are CIL liable but may be eligible for relief or exemption but this must be applied for and granted by the Council. Under government legislation, failure to gain approval for an exemption or relief prior to commencement will result in no exemption or relief being possible and the full CIL payment becoming payable. NB The exemption for self build is only applicable to homes built or commissioned by individuals for their own use. Community group self build projects also qualify for the exemption where they meet the required criteria. The CIL liability will be calculated by Maidstone and recorded as a local land charge in case there is a disqualifying event in the future and the CIL payment becomes payable.
The process and format of the CIL forms is prescribed by the Community Infrastructure Levy Regulations 2010 (as amended) and all forms are available on the planning portal. If the CIL process is not strictly followed the Council may add surcharges and penalties.
Form 1 – CIL Additional Information Form
This form must be submitted with the planning application and will be used to identify whether the application is liable to pay CIL. It asks for details of new floorspace to be created by the development and details of any floorspace to be demolished and/or retained, which can be offset against the new floorspace calculation.
Form 2 - Assumption of Liability Form
It is preferred that this form is submitted with the planning application; however, it is not a validation requirement. Where this form has not been submitted with a planning application, the CIL team will be in touch during the development management process to request this form. On issue of the planning decision notice, the applicant who has not submitted the Form 1 will be asked to complete and return the form prior to commencement of development. This form is required to confirm who will be liable to make the CIL payment. The Council will acknowledge receipt of this form and issue a Liability Notice. The Liability Notice will be sent to the person/s assuming liability for the CIL payment and also to any other interested parties. This notice sets out the amount liable but not due at this stage.
In some cases, CIL liable proposals can be commenced via ‘General Consent’ (i.e. Permitted Development) or by approval of a Lawful Development Certificate and Prior Notification. In these cases, it will be the applicant’s responsibility to inform the Council using Form 5 prior to the commencement of development. Failure to submit this form prior to commencement will mean that an exemption will not be possible if the development is chargeable and the full amount of CIL and the full amount of CIL will be charged become payable with possible surcharges incurred for commencing without submitting a valid commencement notice.
This form must be sent by the applicant to the Council at least one day prior to commencement of development on site. The Council will acknowledge receipt of this notice and will then issue a Demand Notice in accordance with the Councils instalments policy if appropriate.
In order to qualify for a Self Build exemption, there are two forms to complete. Form 7 Part 1 should be submitted if the applicant is building their own house and they will own a material interest in the house and will occupy it as their principal residence for a minimum of 3 years after the work is completed. It should ideally be submitted to the Council at the same time as Form 1, but it can be submitted at any point in the planning assessment process. The Council will then assess the exemption claim. In order to qualify for relief, the applicant must not commence development prior to the Council confirming in writing its decision to grant relief. Should development commence prior to the Council making a decision, exemption will no longer be possible.
Within six months of completing the self-build dwelling where the Council has granted self-build exemption(see above Form 7 : Part 1), the recipient of the exemption must complete and submit Form 7 part 2, to the Council, together with the evidence detailed in the form, The self build unit will only be exempt when both parts 1 and 2 have been approved in writing by us.
The house must be used as the applicant’s main residence, failure to abide by this will result in a disqualifying event. An example of a disqualifying event for relief would be if the dwelling/ building was sold on the open market and no longer used for the purpose for which the relief was granted. For self build relief the clawback period is 3 years.
Form 8 - Self Build Annex Exemption
This form should be submitted if the applicant believes that their development should be eligible to claim an exemption. It should ideally be submitted to the Council at the same time as Form 2. In order to qualify for an exemption, the applicant must not commence development prior to the Council making a decision to grant an exemption. Should development commence prior to the Council issuing a decision in writing, an exemption will no longer be possible.
The Council will write to confirm whether an exemption has been granted. There are specific requirements which must be adhered to, to avoid the exemption granted being withdrawn as a result of a disqualifying event. An example of a disqualifying event for an exemption would be if the dwelling/building was sold on the open market and no longer used for the purpose for which the exemption was granted. For residential annex exemption the clawback period is 3 years.
Download Self Build Annex Exemption Form
Form 9 - Extension Exemption Claim Form
This form should be submitted if the applicant believes that their development should be eligible to claim an exemption. It should ideally be submitted to the Council at the same time as Form 2. In order to qualify for an exemption, the applicant must not commence development prior to the Council making a decision to grant an exemption. Should development commence prior to the Council issuing a decision in writing, the exemption will no longer be possible.
NB: There is no clawback period for householder residential extensions.
Form 10 - Claiming Charitable and/or Social Housing Relief
This form should be submitted if the applicant believes that their development is eligible to claim relief. It should ideally be submitted to the Council at the same time as Form 1. In order to qualify for relief, the applicant must not commence development prior to the Council making a decision to grant relief. Should development commence prior to the Council making a decision, relief will no longer be possible.
The Council will write to confirm whether relief has been granted. There are specific requirements which must be adhered to avoid the relief being withdrawn as a result of a disqualifying event. An example of a disqualifying event for relief would be if the dwelling or building was sold on the open market and no longer used for the purpose for which the relief was granted. For charitable or social housing relief the clawback period is 7 years.
Further Charitable or Social Housing Relief Form
Form 12 - Claiming further charitable or social housing relief (when development is altered)
This form should be used by persons seeking to obtain further charitable or social housing relief from the levy when the development previously subject to relief is subsequently amended by a section 73 permission, creating a new levy liability.
Further Charitable or Social Housing Relief (when altered) Form
Form 13 - Claiming further self-build dwelling, residential annex or residential extension exemption
This form should be used by persons seeking to obtain further exemption from the levy when the development previously granted an exemption is subsequently amended by a section 73 permission, creating a new levy liability.
Further self-build dwelling, residential annex or residential extension exemption Form
What are reliefs and exemptions?
The Community Infrastructure Levy Regulations make a number of provisions for Councils to give relief and exemptions from the levy. Some types of relief and exemptions are compulsory and set out in the CIL regulations; others are offered at the Councils discretion.
NB: Maidstone Council does not offer discretionary relief or exceptional circumstances relief for charitable and social housing relief
‘Community Infrastructure Levy relief’ means any exemption or reduction in liability to pay the levy. It can only be offered to people who are considered to be an ‘owner of a material interest in the relevant land’.
What is a material interest?
A ‘material interest’ is a freehold interest or a leasehold interest, the term of which expires more than 7 years after the date on which planning permission is granted.
The Regulations provide possible relief and exemptions from CIL in the following circumstances:
Residential extensions over 100 square metre. Apply using Form 9
Social housing developments. Apply using Form 10
Charitable developments provided by a charity for charitable purposes. Apply using Form 10
These types of development are CIL liable but may be eligible for relief or exemption which must be applied for and granted in writing by the Council before commencement. Under government legislation, failure to gain approval for relief or an exemption prior to commencement will result in no relief or exemption being possible and the full CIL payment becoming payable. When a relief or an exemption has been granted it will be recorded on the local land charges register and will remain on there in case a disqualifying event takes place. Once the disqualifying event time period has elapsed it will be removed.
In July 2015, the Council undertook a study to consider the viability and deliverability of the Local Plan as a whole and assessed the viability of development allocations to inform the setting of CIL charging rates. The evidence concluded that the overall quantum of development planned in the Maidstone Borough Local Plan could sustain a CIL charge without affecting the overall viability of development within the Borough.
In light of the viability evidence, and given the very rare circumstances in which relevant criteria would be satisfied, the Council chose not to introduce an exceptional circumstance's relief policy.
A disqualifying event is measured by a period in which the development ceases to qualify for a relief or exemption. If this occurs, for example if the chargeable development with a relief or exemption granted is sold within a certain period after the grant, then the full amount of CIL that should have been paid will become due and will be claimed back from the person who has signed the Assumption of Liability Form 1. This process is often referred to as ‘clawback’. If a ‘disqualifying event’ defined in regulation 48 takes place, the relevant person must notify the Council within 14 days.
What are the clawback timescales for each relief and exemption?
Residential Extension (over 100 square metre) Not subject to clawback. n/a
100% Social Housing relief is available to those parts of development which are intended to be used as social housing. The claimant must own the relevant land and assume liability. Charitable private registered providers alongside other providers set out in regulation 49 will be eligible for this reduction as well as private registered providers as defined in the Housing and Regeneration Act 2008 as amended. Social Housing relief may also be available to parties that are not charities. For further details on Social Housing Relief click here. For further details on Reliefs and Exemptions click here.
EU charities are treated in the same way as UK charities for the purposes of charitable relief, any decision on the eligibility of a non-UK charity must be made on the merit of the charitable purpose and will be at the discretion of the Council. The Claiming Exemption and Relief form 10 requires the claimant to demonstrate what its charitable purposes are, for example through production of its constitution or articles of association.
The eligible development must be used ‘wholly, or mainly, for charitable purposes’ and meet the requirements of Regulation 43. NB. There is no discretionary relief available where the greater part of the chargeable development will be held as an investment.
If you decide to build your own house and you will own a material interest in the house and you will occupy it as your principal residence for a minimum of 3 years after the work is completed, then you can apply for a self build exemption. NB you don’t have to actually build the house but you do have to commission the work. To claim the exemption there are two forms which must be completed, one before commencement and one 6 months after completion. The CIL charge will be recorded on the land registry in case a disqualifying event takes place such as the house not being used by the applicant as their principal residence for the 3 years after completion.
Self Build means all homes built or commissioned by individuals or groups of individuals for their own use Community group self build projects will also qualify for the exemption where they meet the required criteria of owning a material interest, are part of the commissioning of the self build and will occupy the dwelling as their main or sole residence.
If your household extension has new floor space over 100 square metre it will be CIL liable. Development over this size, can be made exempt if you own a material interest in the house to be extended and you live in the house to be extended as your sole or main residence. NB There is no disqualifying event for a residential extension.
The Government has set out the process and requirements for making CIL related appeals in the CIL regulations 2010 (as amended ). Appeals can be made where an applicant believes an administrative error has been made, for example in calculating the liability, mistaking the commencement date of development (deemed consent date), incorrectly applying the apportionment of liability for CIL and against enforcement actions such as surcharges, interest and stop notices. Further details of the legislation are provided in part 10 of the legislation and as amended in regulation 11 of the legislation.
Can I appeal the liability calculation if I have already commenced my development?
No. The CIL regulations state that a person cannot request a review from the Council or appeal to the Valuation Office Agency (VOA) if the development has already commenced
First stage - Review Request to the Council
In the first instance if you are unhappy with your Liability Notice calculation the apportionment of the liability, or a Charitable Relief apportionment assessment, a request for a review should be made in writing to the Council within the below time restrictions.
Calculation of Chargeable Amount (Reg 114) Within 28 days of the issue of the Liability Notice
Apportionment of Liability (Reg 115) Within 28 days of the issue of the Demand Notice
Charitable Relief (Reg 116) Within 28 days of the issue of the Charitable Relief Notice
When writing to the Council please state clearly the grounds of your review and email or post to the CIL Project Officer, Strategic Planning, Maidstone Borough Council, Maidstone House, King Street, Maidstone, ME15 6JQ. The request may be accompanied by written representations in connection with the review. Since only one review is allowed and the Council will make their decision on the information submitted, applicants are advised that additional information could help their application.
The Council will acknowledge the request and will review the grounds for the requested review. This will be carried out by an officer who is senior to the person who made the original calculation and who had no involvement in that original calculation. The collecting authority must notify the person who requested the review of the decision and the reasons why within 14 days of the date on which the Council receives the request for a review under regulation S113.
How often can I ask the Council for a review?
You may ask the Council to undertake only one review of the CIL calculation, apportionment or charitable relief assessment. The regulations state that a person may not request a review of a decision reached on an earlier review. It is therefore important that you are clear in your correspondence with the Council that you are seeking a first stage review request and seeking clarification or further information on how the figure or apportionment was calculated
Can I appeal if the review decision if I disagree with the Council?
Should the Council choose to confirm the correct process has been followed, you then have a right to appeal to the VOA.
If the applicant disagrees with the review decision made by the Council, or does not receive a response from the Council within 14 days of their receiving the request, an applicant can appeal to the Valuation Office Agency against a calculation of the levied chargeable amount in a Liability Notice within 60 days of the issue of the Liability Notice. Work should not be commenced on site until a decision has been given, otherwise the appeal is deemed to have lapsed.
What else can be appealed?
There are two different appeal bodies who adjudicate on the CIL process. The Valuation Office Agency (VOA) and the Planning Inspectorate (PINS).
An appeal can be made to the Valuation Office Agency (VOA) against a calculation of the levied chargeable amount in a Liability Notice (see above) or also against the apportionment of liability for the levy
An appeal can be made to the Planning Inspectorate (PINS) concerning Enforcement actions regarding the levy such as surcharges being levied, stop notices and against decisions by Collecting Authorities to deem that development has commenced. View guidance on appealing a CIL enforcement notice.
NB – Appeal applications should be made in writing on a form provided by the VOA and PINS available on the Government’s CIL Guidance.
Once the Council receives a Commencement Notice, it will issue a Demand Notice which will detail the amount of CIL due. The Demand Notice will have a payment reference which you will need to quote when making the payment
We will pursue debtors for non-payment in accordance with the CIL Regulations 2010 (as amended).
Please note: Demand Notices for surcharges for failure to follow the CIL process or for late payment interest, will be registered as a local land charge against the relevant land. This will be removed on receipt of full payment.
The CIL Regulations set a requirement that full payment of the levy charge will be made within 60 days of the commencement of the chargeable development. Maidstone Council has agreed that this will apply to payments of less than £250,000. For all those greater than £250,000, there will be an option to pay by instalments
View Maidstone's approved instalments policy.
Please note: This Instalment Policy will not be available if development has commenced before the Commencement Notice has been submitted
Late payment of CIL will incur a surcharge and any right to paying by instalment will be lost. All remaining CIL liability will then become due in full, to be paid immediately. This is set down in the legislation and the Council has no discretion.
CIL payments must be indexed from the year that CIL was introduced (2018) to the year that the planning permission is granted. The index previously used is the national All-In Tender Price Index published by the Build Cost Information Service (BCIS) of the Royal Institute of Chartered Surveyors (RICS).
Indexation is added for the full calendar year, 1 January to December 31. It is added the year after the CIL is implemented. In Maidstone this will mean the charging figures that were agreed in the charging schedule will be without indexation from 1 October 2018 through to end of December 2018.
We will use the BCIS figure from 1st November 2017 to reflect the baseline position of when the CIL was implemented in 2018 and the BCIS figure for 1 November 2018 which will be used in all calculations for 2019. The 2017 figure will be the base figure in ALL calculations in all years as this is the indexation in the year in which the schedule came into effect. Indexation is the BCIS figure taken on 1 November in the preceding year. The baseline index rate is 324.
From the 1st January 2020 RICS, with the support of the Ministry of Housing Communities and Local Government (MHCLG), have developed an annual CIL index from this date for the purposes of keeping the levy rate responsive to market conditions.
The year the planning permission was granted indexation figure will change annually as noted above and will apply: 1 January to 31 December.
The Council will publish the RICS CIL Index figure annually here by the end of December.
Where there is a disqualifying event and the relief or exemption no longer applies, such as a self build house or annex sold within 3 years, full payment of CIL will be due immediately.
The Council must be satisfied that the land to be transferred would be appropriate for the provision of necessary infrastructure to support growth in the Borough. It is entirely at the Council's discretion to accept a land transfer in lieu of CIL.
If the CIL is not paid or the process is not followed correctly the Council will take action in order to recover the debt.
Part 9 of The CIL Regulations 2010 as amended in regulation 10 sets out the processes and enforcement powers of the Charging Authority, to ensure the smooth collection of the levy. The CIL regulations give the Council the ability to remove the instalment facility and to impose late payment interest and surcharges on the levy.
Sometimes Maidstone Borough Council may believe that interest and late payment surcharges will be ineffective in securing payment of the overdue CIL or that writing to the liable person informing them of the surcharges and interest has not resulted in payment.
In these circumstances, the Council may decide to serve a CIL Stop Notice on the development. A Stop Notice prohibits development from continuing until payment is made. Once a notice is issued it is a criminal offence to continue with the development. Persistent failure to pay the levy can result in legal action being sought to recover the debt due by seizing and selling assets, or in an extreme cases result in 3 months imprisonment
How CIL will be allocated and spent by the Council, Parishes, Forums and Wards?
To indicate what sort of items this could be spent on: S.216 (2) of the Planning Act 2008 states that Infrastructure includes:
An amount of CIL can be spent locally, either 15% or 25% to provide infrastructure in the local community. This percentage is taken from the CIL receipt of money, secured from CIL liable developments in the local area. Money is allocated on a Parish basis and where no parish exists, by Neighbourhood Forum area, Parish meetings or Residents Association subject to it having a ‘made’ plan and then by ward.
An area with a made neighbourhood plan in place is allocated 25% and those without a made neighbourhood plan are allocated 15% which is capped at £100 per council tax paying dwelling within that parish per year.
Subject to having appropriate governance procedures in place Parish Councils can receive 15% of the CIL funds which have been gained from development in their Parish, which are capped at £100 per council tax paying dwelling per year. Or 25% if they have a ‘made’ Neighbourhood Plan in place. Funds are passed to Parish Councils twice a year; on 28 April and on 28 October. Parish Councils do not have to accept receipt of CIL money and can ask the Council to administer it on their behalf. More details are on the Neighbourhood spend pages
For areas which do not have a Parish Council or a Neighbourhood Forum 15% will be allocated to the ward capped at £100 per council tax paying dwelling and spent by the Borough Council in consultation with the community. The regulations require the Borough Council to engage with the community where the development has taken place and agree with them how to spend the proportion of CIL. This consultation will be in proportion to the amount of CIL received.
Details of what is required to be submitted by anyone receives and spends CIL.
Reports should be sent to the CIL team no later than 30th June following the reported year end to enable Maidstone Council to review and publish all the reports including that of the Council.
Date of Report: 5 November 2019
Total CIL brought forward from previous years: £0
A. CIL Receipts
B. CIL Expenditure
C. Details of CIL Expenditure
Items on which CIL has been spent
Amount of CIL spent on this item this year
Total CIL amount spent to date on this item
Support for Parish Councils, Wards and Neighbourhood Forums on accessing CIL for projects.
The non strategic portion of CIL is often referred to as the ‘neighbourhood portion’ of CIL that the Council receives. It can be allocated to local communities within whose area, the development falls. Parishes with appropriate governance will be passed the CIL. In non parished areas such as Wards, Forums and Meetings, the CIL receipt will be held by the Council and spent in consultation with the local community (see Neighbourhood CIL Spending in Wards/Non Parished Areas). The distribution of neighbourhood CIL money is 15% for areas without a made neighbourhood plan (capped at £100 per council tax paying dwelling in their area, per annum) or 25% where there is a made neighbourhood plan in place and which was made before the relevant planning permission was granted.
Neighbourhood Portion ongoing costs
To assist Parish Councils in making the best use of their receipts and neighbourhood forums to be the best able to influence the Council, it is recommended that priorities are identified for the area. The Council suggests that organisations produce and publish on their website an Infrastructure Spend Plan. This should have short, medium and long term objectives and where appropriate provide an outline or details of projects.
It should prioritise the projects identified in the adopted Neighbourhood Plan (if there is one) and can form the basis of any local consultation. It would also be prudent for the plan to acknowledge that something specific may arise as a direct result of development that may require the allocation of CIL funds.
The Parish Council must record all CIL receipts and expenditure for each year and the amount of CIL carried over. MBC as the collecting authority have to prepare an annual plan and any organisation given CIL ie Parish Council must prepare and submit an annual report to the Council.
In addition to the annual financial CIL report, each year specific details of what the CIL receipts have been spent on will be requested as a supplementary report. The report will provide further details about each project including any photos or additional documentation.
Neighbourhood CIL Spending in Wards/Non Parished Areas
Communities without a parish or town council can still benefit from the Neighbourhood Community Infrastructure Levy (CIL) funding portion. If there is no parish or town council, Maidstone Borough Council will retain the levy receipts but will engage with the communities where development has taken place and agree with them how best to spend the neighbourhood CIL.
The neighbourhood CIL collected inside Maidstone from developments within Wards/Non Parished areas will go towards local community projects in those areas. The Council passes the funds to those successfully chosen projects in consultation with the communities within those local areas.
MBC has now extended the bidding for Neighbourhood CIL funds. Money is available for community groups/projects in the following Wards:
Detling and Thurnham Ward - £1,135.31
Fant Ward - £2,985.30
High Street Ward - £5,932.58
Shepway North Ward - £2,415.06
Shepway South Ward - £1,634.79
If you or your community group wishes to apply for the Neighbourhood CIL funding, please complete a Project Assessment form and submit to Maidstone Council by 31st July 2020. This Form and Guidance are available here.
Evidence of need and support for the project. Has there been any local consultation whether by survey/ petition etc
Any known future ongoing costs
The Council will initially assess the applications to check they fall within the criteria and are deliverable.
CIL Neighbourhood Spend Public Consultation
Once the applications for funding have been assessed against the criteria, we will be asking residents, community groups, businesses and anyone with an interest in that ward for their views on the projects put forward, and do they match the priorities expressed by the local community for that ward.
Applicants will be notified once the consultation responses have been received and analysed.
CIL is a financial charge on the local land charges register and is removed on receipt of payment. The property/land in question will then no longer be CIL liable except for disqualifying events which will remain on the register until their disqualifying time has expired. If there is no relevant planning permission there is no CIL liability on the property.
No. If your previous consent was before 1st October 2018 and you make a minor amendment it will not make the previously granted floor space liable. However if your minor amendment involves the addition of any new floor space which is a) over 100 square metre or b) is less than 100 square metre but its addition creates a new dwelling, then the additional floor space will become liable.
On an extension of 110 square metre, is CIL payable on the 110 square metre or the 10 square metre above the threshold?
As soon as the threshold is reached, the whole build is chargeable. So CIL would be payable on the 110 square metre.
CIL is only chargeable on buildings and not temporary structures. Mobile homes, caravans, glamping units/pods etc are therefore not CIL liable. A holiday let that is a building and a Class C3 use (Dwellinghouse) would be CIL liable.
The CIL regulations do not require a direct link between where the money is raised and where the money is spent on infrastructure schemes. The CIL regulations leave it to individual authorities to decide how to redistribute the strategic portion of the CIL income.
The new house will be liable for CIL but you may be eligible for an exemption. You will need to apply for this as well as provide additional evidence 6 months after the build has been completed (see forms 7 part 2). You will then need to occupy the house as your main residence for a minimum of three years. It is important that you apply for the planning permission yourself or in the case of a site with multiple plots, that a phase permission is requested so that each plot can be treated separately.
Lift rooms, plant rooms, tank rooms, fuel stores, regardless of roof level