Who pays CIL and when?
Who pays CIL?
The responsibility to pay CIL sits with the ownership of the land on which the liable development is located. However, others parties involved in the development, such as developers, may wish to pay a proportion of the CIL. Owners of the land, or other parties, must assume liability for the development and the CIL charge, using the Assumption of Liability form.
The Assumption of Liability form must be submitted before you commence work on site (commencement is defined below). The Assumption of Liability form also needs to be submitted before you make any claim for relief or exemption. We would encourage you to submit the Assumption of Liability Form as soon as possible. Once we receive your Liability Notice, we will acknowledge this and send a Liability Notice detailing the amount of CIL you need to pay.
CIL liability can be transferred to other parties at any time prior to the final payment being due.
Liability can be withdrawn at any time up to commencement. After commencement, liability can only be transferred.
Numerous parties can assume liability for CIL, but must tell us the proportion of land which they own so the CIL charge can be shared accordingly.
If no party assumes liability then payment will default automatically to the owners of the land. If no CIL payment is received, payment can also default to the owners of the land. If the Council has to identify the owners of the land, then we can apply a surcharge.
When is payment due?
Where a development is liable for CIL, payment is due within a certain number of days after commencement of development, or as set out in the Instalments Policy. If you need to pay CIL on your development, you must notify us of the development's start date, before you start the development. This is called a Commencement Notice. Once this has been submitted we will then acknowledge your commencement notice and send you a demand notice stating how much CIL is due and when CIL must be paid.
Payment dates for CIL are set out in our Instalments Policy.
Where developments, and the levy, are above a certain size we will allow you to pay in instalments, as set out in the Instalments Policy.
If you notify us late, or not at all, then we can apply a surcharge and payment will be due immediately in full and you will lose the opportunity to pay in instalments.
How is commencement defined?
Development is defined as commenced in accordance with Regulation 56 of The Town and Country Planning Act 1990 and the definition of 'material operations'. Material operations include any work of construction in the course of erecting a building, the demolition of existing buildings, digging of a trench to contain the foundations, or part of the foundations, laying of underground main or pipes, any operation in the course of laying out or construction of a road, and any change in use of the land which constitutes material development.
Is there any other way to pay CIL?
There may be situations where the charging authority and the person liable for the levy will provide land and/or infrastructure to be provided, instead of money, to satisfy a CIL charge. This is known as Payment in Kind and our Payment in Kind policy sets out the requirements.
More information can be found on the Gov.UK website or by contacting the CIL Officer.