The Community Infrastructure Levy

The Council will soon be adopting a Community Infrastructure Levy (CIL). CIL is a planning charge introduced across England and Wales by ‘The Community Infrastructure Levy Regulations 2010 (as amended)’. CIL is used by Local Authorities to help fund a wide range of infrastructure that is needed as a result of development.

You may need to make a CIL payment if you are applying for planning permission.

This advice is given to the best of the Council’s knowledge at the time of writing. ‘Regulation(s)’ refer to the relevant section of the Community Infrastructure Levy (CIL) Regulations 2010 (as amended).

Introduction to the Community Infrastructure Levy

The Community Infrastructure Levy

The Community Infrastructure Levy (CIL) is a charge on new development. It is based on the size and type of development, is mandatory to pay and non-negotiable.

The funds raised must be used to provide infrastructure required to support new development across the Local Authority area.

CIL is charged on a £’s per square metre (sqm) basis of new (additional) floor space.

It is only payable for certain types of development and in certain locations. Full information regarding the charging rates and zones is contained within the Council’s CIL Draft Charging Schedule.

More information on CIL funded infrastructure in Cheshire East is contained within the Council’s Regulation 123 list which can also be found in the Council’s CIL Draft Charging Schedule

CIL charging rates

The CIL charging rates are based on viability testing and an identified need for infrastructure. The Council’s CIL Draft Charging Schedule has been subjected to two rounds of public consultation, as well as an independent Examination.

Background documents can be found in the Council’s CIL Examination Library.

CIL in Cheshire East

The Council’s CIL Draft Charging Schedule is expected to be adopted and come into effect on 1 March 2019. It will apply to relevant planning permissions granted from 1 March 2019 onwards.

A development becomes CIL liable from the date planning permission is granted not when the planning application is submitted.

CIL as a land charge

CIL a legally enforceable levy which is shown as a land charge on the Local Land Charges register.

Interim advice for applications made before 1 March 2019

CIL expected adoption on 1 March 2019

The Council’s CIL Draft Charging Schedule is expected to be adopted and come into effect on 1 March 2019. It will apply to relevant planning permissions granted from 1 March 2019 onwards.

A development becomes CIL liable from the date planning permission is granted not when the planning application is submitted.

Submission of additional information before CIL is adopted

If you are making a planning application to Cheshire East Borough Council, you will need to include with your application a Community Infrastructure Levy (CIL) ‘Planning Application Additional Information Requirement' form. You are advised to read the accompanying 'Supplementary CIL Guidance'.

Planning Application Additional Information Requirement Form

Supplementary CIL Guidance (PDF, 75KB)

The information provided on this form will enable the Council to determine whether or not CIL is payable and to calculate the chargeable amount. Failure to supply this information will invalidate your application and may lead to delays.

The person or organisation responsible for paying CIL should also send the Council a 'Form 1: Assumption of Liability' prior to commencement of the development.

Form 1: Assumption of Liability

The Council recommends the 'Assumption of Liability' form is submitted with the planning application to reduce the risk of potential surcharges in the future.

Full planning permission granted prior to CIL 

There is no liability if a scheme was granted full planning permission before the CIL adoption date. The subsequent approval of pre-commencement conditions does not trigger a liability to pay CIL.

Outline planning permission granted prior to CIL

The subsequent approval of reserved matters will not trigger a liability to pay CIL if a scheme was granted outline permission prior to the adoption of CIL. 

Section 73 application to vary or remove conditions 

Approval of a Section 73 (s73) application triggers a liability to pay CIL as it results in a new planning permission.

Where the original planning permission was granted prior to a CIL charge being in place but the s73 application is granted following the introduction of CIL, the s73 consent will only trigger CIL for any additional liability it introduces to the development (such as increased floorspace).

Appealed cases

The development will be liable to pay CIL if planning permission is granted on Appeal after the CIL adoption date. 

Applications with a Section 106

Formal grant of planning permission cannot be issued until the s106 Agreement has been completed. If this occurs after the CIL adoption date the development will be liable to pay CIL.

CIL charges, liability and exemptions

The difference between liable and chargeable

A development may be liable for CIL, but not chargeable. This will occur where the development meets the conditions for CIL (liable), but a zero charging rate applies – see Charging Zone Maps at Appendix B of the Council’s CIL Draft Charging Schedule. A 'Liability Notice' will still be issued, but will state that a zero charge is applied.

Who has the liability to pay CIL

Landowners are ultimately liable to pay CIL, but anyone involved in a development may assume liability to pay on behalf of the landowner.

If you are making a planning application to Cheshire East Borough Council you will need to submit an 'Assumption of Liability' form. 

Form 1: Assumption of Liability

The information provided on this form will enable the Council to determine who to contact. The Council recommends the ‘Assumption of Liability’ form is submitted with the planning application to reduce the risk of potential surcharges in the future.

Where no one has assumed liability to pay CIL, liability will automatically default to the landowner(s) and payment becomes due as soon as development commences.

Liability can also default to the landowners where the Council has been unable to recover CIL payment from the party that assumed liability despite making all reasonable efforts.

If you have sold the site but claimed liability

Liability can be transferred to another person before or after a development commences, but this must occur before the final CIL payment is due. If you want to withdraw or transfer assumed liability you need to complete one of the following forms.

Form 3: Withdrawal of Assumption of Liability

Form 4: Transfer of Assumed Liability

CIL liable developments

A development will be liable to pay CIL if both the following apply:

  • it is of a type and location for which a chargeable rate has been set in the Council’s CIL Draft Charging Schedule and
  • it is a building into which people normally go.

And the development is either of the following:

  • new build of at least 100 sqm gross internal area (GIA) floor space or
  • creation of one or more new dwellings, even where the floor space is less than 100 sqm GIA.

A development may be liable to pay if:

  • there is a change of use of a building that has been unused for a period of time
  • development commenced under ‘general consent’, including permitted development etc.

A development will be exempt and does not pay CIL if:

  • the use, type and location of development has a zero or nil charge (£0/ sq m) as set out in the Council’s CIL Draft Charging Schedule
  • the development is less than 100 sqm GIA floor space, unless it is a new dwelling (see above)
  • is eligible for ‘self-build’ exemption (applies to houses, flats, residential annexes and residential extensions) and the relevant relief claim forms have been submitted and accepted before development commences

Form 7: Self Build Exemption Claim Form (Part One)

Form 8: Self Build Residential Annex Exemption Claim Form

Form 9: Self Build Residential Extension Exemption Claim Form 

  • it is for a structure or building into which people do not normally go, such as pylons, wind turbines or go into only intermittently for inspection and maintenance of fixed plant or machinery 
  • there is a change of use with no additional floor space and the former use has been in continuous lawful use for a period of at least six months over the past three years ending on the day the planning permission first permits the development
  • is for social housing and a claim for social housing relief is made (below) and accepted before development commences

Form 2: Claiming Exemption or Relief

  • is for, and occupied by, a charity and a claim for charitable relief is made (below) and accepted before development commences;

Form 2: Claiming Exemption or Relief

  • it consists of mezzanine floors inserted into an existing building; these are not liable unless they form part of a wider planning permission that seeks to provide other works as well
  • the development is a change of use from a single dwelling to two or more separate dwellings with no additional floorspace
  • where the levy liability is calculated to be less than £50, the chargeable amount is deemed to be zero so no levy is due.

‘Self-building’ my own house

‘Self-build’ applies to anyone who is building their own home or has commissioned their home from a contractor, house builder or sub-contractor.

‘Self-build’ homes are exempt from CIL, subject to various criteria.

In order to claim CIL exemption for a self-build dwelling, you must submit the 'Self-Build Exemption Claim Form Part 1', and have it agreed by the Council before commencing development.

Form 7: Self Build Exemption Claim Form Part 1

Within 6 months of completing the dwelling you must submit the 'Self-Build Exemption Claim Form Part 2', and you must provide additional supporting evidence to confirm that the project is self-build.

Form 7: Self Build Exemption Claim Form Part 2

You must then own the property and occupy it as your principal residence for a minimum of three years after the development is completed.

If within the first three years you want to sell or rent out the property or stop using it as your main dwelling, you must notify the Council within 14 days of the sale/rent. The CIL chargeable amount which was originally waived will then be payable in full.

Failure to notify the Council that you wish to sell/rent your dwelling will result in enforcement action.

Deductions from demolitions and/or existing buildings

The gross internal floor space of any existing buildings on site that are going to be demolished or reused may be deducted from the calculation of CIL liability, providing that the building has been in continuous lawful use for at least six months over the past three years ending on the day the planning permission first permits development.

It will be for the applicant or their agent to demonstrate lawful use by providing appropriate evidence such as Council Tax records or Business Rates documentation.

‘The day planning permission first permits development’

In most cases, this will be the day that planning permission is granted.  

However, there are some caveats outlined in CIL Regulation 8 for different types of permission. For example, if there is a Charging Schedule in force when outline planning permission is granted, then ‘the day planning permission first permits development’ relates to the final approval of reserved matters, for each phase of that outline permission.

Development types

Reserved matters applications

Outline planning permissions will be liable to pay CIL when the development is built. CIL liability is calculated when details of floor space are known at reserved matters stage.

If an outline application includes phasing of development, each phase is treated as a separate development for the purpose of paying CIL. The CIL liability for each phase is then calculated at the reserved matters stage for that phase.

Change of use

A planning application for the change of use of an existing building, or a change of use carried out in accordance with permitted development rights, will generally not be liable to pay CIL unless any of the following apply:

  • it involves an extension providing 100 sqm or more of additional floorspace; or
  • it involves the creation of a new dwelling even when it is below 100 sqm.

If the existing building has not been in continuous lawful use for a period of at least six months in the three years running up to the day planning permission is granted, or, is deemed to have been abandoned, the development will be liable for CIL and no deductions will be made for existing floorspace.

It will be for the applicant or their agent to demonstrate lawful use by providing appropriate evidence such as Council Tax records or Business Rates documentation.

Building a household extension

Residential extensions with an increase in floor space of less than 100 sqm are considered a ‘minor development’ and not CIL liable provided that:

  • the main dwelling is your principal residence and you have a material interest in it (own or have a leasehold of seven or more years)
  • the extension enlarges the principal residence and does not comprise an additional dwelling.

Replacement dwellings

Approval of a replacement dwelling application does trigger a liability to pay CIL as it results in a new planning permission.

However, you will be able to deduct the demolished floorspace from the new floorspace, providing it has been in continuous lawful use for six months in the previous three years ending on the day the planning permission first permits development.

Therefore, consent will only trigger CIL for any additional floor space it introduces to the development.

Building an annex in a garden

A residential annex within the grounds of your main dwelling with floor space of less than 100 sq m is considered a ‘minor development’ and not CIL liable provided that:

  • the main dwelling is your principal residence and you have a material interest in it (own or have a leasehold of seven or more years).
  • it is a single residential annex wholly within the curtilage of the main dwelling and comprises of one new dwelling.

To claim this exemption you must submit the following form prior to the commencement of development

Form 8: Self Build Residential Annex Exemption Claim Form

Once this has been approved by the Council, you must submit a 'Commencement Notice form' before starting any development on site otherwise your exemption will be deemed invalid.

Form 6: Commencement Notice

The full CIL amount will be payable if within three years of completion:

  • the main house is used for any purpose other than as a single dwelling or
  • the annex is let or
  • either the main residence or the annex, are sold separately from the other.

Barn conversions to residential use

A change of use from a barn to residential would not be liable for CIL if:

  • the barn had been in continuous lawful use for a period of six months over the past three years before planning permission is granted and
  • the change of use would not result in an increase in size. If the barn had been in continuous lawful use but also resulted in increased floor space, then only the additional floor space would be liable for CIL. The same would apply to offices or other prior uses.

It will be for the applicant or their agent to demonstrate lawful use by providing appropriate evidence such as Council Tax records or Business Rates documentation.

Sub-division of an existing residential dwellings 

The conversion of a single dwelling house into two or more separate dwellings with no additional floorspace is not liable for CIL.

General consent and permitted development

Development that does not need planning permission by the Local Authority and commenced under ‘general consent’ such as permitted development or prior notification may be liable to pay CIL.

If you intend to develop under ‘general consent’ you must complete a ‘Notice of Chargeable Development’ form. 

Form 5: Notice of Chargeable Development

The standard criteria for determining whether you will pay CIL will then apply.

Applying for retrospective planning permission

The CIL charge is calculated upon issuing of permission.

Usable basement and/or loft space

If the basement and/or loft floorspace is usable, and entered regularly, then it will be CIL liable.

Garages

Garages which are an integral part of planning applications for new houses count as gross internal area and are liable for CIL whether integral to the new house design or detached.

An application for a new garage for an existing house will not normally be liable for CIL as the floor space will be less than 100 sqm.

No CIL is payable on ‘lean to’ or fully open-sided car ports/canopies.

Calculation of the CIL charge

CIL is calculated by multiplying the rate of the applicable charge as set out in the Council’s  CIL Draft Charging Schedule by the net increase in gross internal floor area after allowing for any demolition and adjusting for inflation.

The formula for calculating CIL is contained in the  CIL Regulations 2010 (as amended).

An index of inflation is used in the calculations of the CIL chargeable amount.

Where CIL liability is calculated to be less than £50, the chargeable amount is deemed to be zero, so no CIL payment is due.

Notification of payment

The Council will send you a ‘Liability Notice’ including a calculation of the CIL amount payable after planning permission is granted and following receipt of the 'Assumption of Liability' form.

It is important to note that exemptions are not automatically applied. If you think you are eligible for an exemption or relief you need to complete the relevant form before you commence development.

Payment of the CIL charge

CIL is payable within 60 days of the commencement of development.

The Council will send you a 'Demand Notice' outlining your CIL charge including how to make your payment.

CIL payments are not subject to VAT.

Payment in instalments

If your chargeable amount is £50,000 or above then the Council offers a payment instalment option. The instalment thresholds can be found in the Draft CIL Instalments Policy .

In accordance with the CIL Regulations 2010 (as amended) this CIL Instalment Policy will not apply in the following circumstances:

  • where a Commencement Notice has not been submitted prior to commencement of the chargeable development;
  • where nobody has assumed liability to pay CIL for the chargeable development on the intended day of commencement;
  • an instalment payment has not been made in full within 30 days of the due date for the instalment payment.

Where the instalment policy does not apply, the chargeable amount must be paid in full within 60 days of the notified or deemed commencement date of the chargeable development or the date of the disqualifying event, whichever is the earliest.

The day on which an instalment payment will be due will be calculated from the date of commencement of development on site.

Advice before commencing development on site

You are a CIL liable party if you have received a CIL 'Liability Notice' following the grant of permission.  CIL liable parties are required to send a 'Commencement Notice' to the Council before development commences.

Form 6: Commencement Notice

WARNING: Do not commence development before you have received an acknowledgement from the Council confirming safe receipt of your Commencement Notice.

Change of commencement date

The Council will issue a 'Demand Notice' based on your commencement date, so if this changes, you need to let us know. Simply re-submit a new 'Commencement Notice' form with the new date provided.

Form 6: Commencement Notice

The Council will acknowledge the date on the latest Commencement Notice.

It is IMPORTANT that you do not start work before you have had acknowledgement of receipt of your 'Commencement Notice' from the Council.

Overpayments

The Council will reimburse overpayments, unless the overpayment is less than any reasonable administrative costs which it would incur in making the repayment or, is the result of a land or infrastructure payment.

Failure to pay

CIL payment is a mandatory and non-negotiable planning charge and there are penalties and surcharges for non-payment. Any instalment options that have been granted are automatically withdrawn.

If CIL is not paid on time, there are strong enforcement powers relating to recovery of the debt, which are set out by the CIL Regulations Part 9.

Appealing a CIL charge

Requesting a review of the CIL chargeable amount

You can ask the Council for a review of the chargeable amount. You need to do this within 28 days from the date on which the 'Liability Notice' (that outlines the chargeable amount) was issued.

The Council will review the calculation and issue a decision within 14 days. This decision cannot be reviewed again.

Appealing the Council's review decision

You can appeal against the Council’s review decision. You will need to submit an appeal to the Valuation Office Agency within 60 days of the 'Liability Notice' being issued.

Rights of appeal

Appeals can be lodged against some aspects of a CIL charge.

There is a right of appeal on the following CIL matters:

  • Chargeable Amount Appeal (Reg. 114)
  • Apportionment of Liability Appeal (Reg. 115)
  • Charitable Relief Appeal (Reg. 116)
  • Exemption for Residential Annexes Extensions Appeal (Reg. 116A)
  • Exemption for self-build housing Appeal (Reg. 116B)
  • Surcharges Appeal (Reg. 117)
  • Deemed Commencement Appeal (Reg. 118)
  • CIL Stop Notice (Reg. 119)

Appeals under CIL Regulations 114, 115, 116, 116A and 116B are administered by the Valuation Office Agency (VOA). Information on how these appeals are administered and how to make an appeal under one of these regulations is located on the Gov.uk website.

Appeals under CIL Regulations 117, 118 and 119 are administered by the Planning Inspectorate. Information on how these appeals are administered and how to make an appeal under these regulations is located on the Gov.uk website.

Infrastructure provision using CIL and Section 106

The Regulations restrict the use of local planning obligations on the adoption of CIL to ensure that individual developments are not charged for the same items twice.

Where the Council has indicated that it intends to fund (wholly or partially) an item of infrastructure through CIL, that is, if the infrastructure is identified on the Council’s Regulation 123 List found in the CIL Draft Charging Schedule, it cannot then also seek money through s106 for the same thing.

S106 Obligations will continue to be used to deliver some infrastructure, but this will largely be restricted to site-specific mitigation and for providing affordable housing.

Some infrastructure requirements may be physically on site, such as open space play provision, and these will be secured under s106 contributions where they are clearly linked to the development site and are needed to make that particular site acceptable in planning terms. See the Council’s s106 Agreements - Planning Obligations page for precedents, standard forms and further information.

Council expenditure of CIL money

A list of the infrastructure types and projects needed to support the development of an area that the Council intends to be wholly, or partly, funded by CIL can be found in the CIL ‘Regulation 123’ List section of the Council’s CIL Draft Charging Schedule.

Items can be added to or removed from the 'Regulation 123 List', subject to appropriate local consultation.

The Council is required to prepare a monitoring report to provide details of how much CIL has been received, what it has been spent on and how much is left in reserve. This report will be produced on an annual basis.

CIL money for Town and Parish Councils

In areas where the CIL levy operates, Parish Councils will receive a ‘neighbourhood proportion’ of the CIL money raised within their Parish. This neighbourhood proportion is up to 25% of CIL receipts in areas with an adopted Neighbourhood Plan and up to 15% (capped at £100 per existing council tax dwelling) in areas without a Neighbourhood Plan.

Town and Parish Councils' expenditure of CIL money

CIL revenue must be spent on infrastructure proposals. The Government has provided a wide definition of what can be considered infrastructure.

Outside of this,Town and Parish Councils receiving CIL money will be able to decide how to spend their percentage of money collected. In certain cases the Council may look to work with Towns and Parishes to pool contributions to help fund key infrastructure projects.

Town and Parish Councils are required to produce an annual report outlining their use of their share of CIL receipts, so it is important for Town and Parish Councils to keep clear and transparent records of CIL funding and to have a good understanding of the infrastructure projects their community wishes to be funded.

1.Submission of Planning Application (DEVELOPER)

All planning applications involving the construction of new floor space must provide sufficient information to allow the Council to determine whether CIL is liable and – if so – the amount of the charge.

Therefore, when submitting a planning application for a development that may be CIL liable you should submit the CIL 'Additional Information Requirements Form' to ensure that your CIL liability is calculated accurately.  It is advised that you also read the accompanying 'Supplementary CIL Guidance'.

Planning Application Additional Information Requirement Form

Supplementary CIL Guidance (PDF, 75KB)

Failure to submit this form alongside the planning application will mean that possible CIL liabilities will be unable to be calculated and the Council will not validate the planning application until the required information is submitted.

If you intend to develop under ‘general consent’ you must complete a ‘Notice of Chargeable Development’ form below. The standard criteria for determining whether you will pay CIL will then apply.

Form 5: Notice of Chargeable Development

2. Assumption of liability (DEVELOPER)

Responsibility to pay CIL runs with the ownership of land on which the liable development will be situated. However, the CIL Regulations recognise that others involved in a development may wish to pay. To allow this, anyone can come forward and assume liability for the payment.

It is the responsibility of the person(s) who will pay CIL to serve an 'Assumption of Liability Notice' form  on the Council prior to the commencement of the development.

Form 1: Assumption of Liability

The Council recommends that the 'Assumption of Liability Notice' is submitted during the planning application process.

Where no one has assumed liability to pay CIL prior to the commencement of the development, the liability will automatically default to the landowners of the relevant land.

The Council has adopted a Draft CIL Instalments Policy that allows payment of CIL liabilities over a longer time period to assist with development cash-flow. Failure by any parties to assume liability prior to commencement will mean the payments become due immediately upon commencement of the development and the instalments policy will not apply.

In addition, a surcharge of £50 may be imposed upon each landowner found to be liable and where the Council has to apportion liability between one or more owners of the land, a further surcharge of £500 per owner may be imposed.

Assumption of liability can be withdrawn or transferred to another party/parties by completing and submitting the relevant forms.

Form 3: Withdrawal of Assumption of Liability

Form 4: Transfer of Assumed Liability

3. Exemptions (DEVELOPER)

If you are eligible for exemption, you are required to submit one of the forms.

Form 2: Claiming Exemption or Relief

Form 7: Self Build Exemption Claim Form (Part One)

Form 8: Self Build Residential Annex Exemption Claim Form

Form 9: Self Build Residential Extension Exemption Claim Form

To claim any one of these exemptions you must submit the appropriate form above  prior to the commencement of development.

4. Liability Notice (COUNCIL)

When planning permission is granted for a CIL liable development, the Council will issue a 'Liability Notice' following the grant of planning permission. This 'Liability Notice' will also be registered as a Land Charge.

The 'Liability Notice' will specify how much CIL is to be paid and when it is to be paid.

The 'Liability Notice' is not a demand for payment. It will be sent to the applicant/owner or other parties that have already assumed liability and copied to planning agents working on applicants/owner's behalf.

5. Commencement Notice (DEVELOPER)

Prior to the development commencing, you must provide the Council with a 'Commencement Notice' form stating the date when the development will commence. 

Form 6: Commencement Notice

Failure to submit a valid 'Commencement Notice' before development commences may result in the Council imposing a surcharge of 20% of the CIL amount due, up to a maximum of £2,500.

In addition, payments will not be permitted to be made in line with the Instalments Policy and full payment will be payable immediately.

6. Demand Notice (COUNCIL)

The Council will serve a 'Demand Notice' following receipt of a 'Commencement Notice', or a decision by the Council to deem that the development has commenced.

The 'Demand Notice' will set out precise details of payment arrangements including instalment options, which will be payable from the date upon which development commences.

Payment will be due in full on the day that the Council believes the development to have commenced if a valid 'Commencement Notice' has not been submitted before development commences.

If a development takes place in phases, each phase is a separate chargeable development and payments can be made in line with the Council’s CIL Instalments Policy.

You can also find out more about CIL at:

If you have any queries regarding planning applications and CIL please visit the Council’s CIL and planning application webpages or contact the Council at CIL@cheshireeast.gov.uk or call 0300 123 5014.

IMPORTANT NOTE This advice is given to the best of the Council’s knowledge at the time of writing. ‘Regulation(s)’ refer to the relevant section of the Community Infrastructure Levy (CIL) Regulations 2010 (as amended).