The Community Infrastructure Levy (CIL) was introduced by the Government to try to ensure that when land is developed, it comes with the necessary infrastructure to support it such as schools, public transport and leisure facilities.
The Community Infrastructure Levy (CIL) allows us to raise funds from developers and individuals who are undertaking building projects to support growth in the Greater Norwich area.
CIL is charged on almost all new buildings to ensure that development contributes towards the infrastructure needed to support growth in an area. Previously many smaller developments made no specific contribution towards infrastructure, even though, collectively, they could place significant demands on local facilities.
Development started under general consent is also liable to pay CIL. This includes permitted development rights granted under the General Permitted Development Order 2015.
Section 106 agreements and planning conditions continue to be used but in a much reduced and restricted form.
Further details relating to the adoption of CIL and annual finance reports are available.
What development is liable for CIL?
The following types of developments are liable for CIL:
- All development of 100 sqm or more of new build, or extensions to existing buildings
- All development regardless of size that results in the creation of a new dwelling
- Agricultural buildings and storage warehouses that people enter into
- The conversion of a building that is no longer in lawful use (see below).
Definition of lawful use
The definition of lawful use is contained in Regulation 40(11) of the Community Infrastructure Levy (Amendment) Regulations 2014. For the use to be lawful for the purposes of CIL it must “contain 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”.
Planning applications that are CIL liable must be accompanied by the Planning Application - Addition Information Requirement form in order for us to calculate the correct CIL liability. These details should be submitted before the planning application is determined.
This applies even if a development is subject to a £0 rate of CIL, or if it is able to benefit from the relief available for affordable housing, charitable development, self build dwellings, extensions or annexes.
In some cases permitted development (development that does not require planning permission) may be large enough to be liable for CIL. In these cases the developer must send a CIL form - Notice of Chargeable Development to us before the development commences. The CIL charge is then calculated and applied as though planning permission has been granted.
Responsibility to pay CIL runs with the ownership of the land and the levy is registered as a local land charge. Liability to pay CIL may be assumed by the landowner or another party.
This is done by completing and submitting the CIL form - Assumption of Liability to us before the development commences. Failure to submit the form prior to commencement of the development will result in the liable landowner/party losing any right to pay the CIL in instalments and may incur a surcharge, as set out in our Instalment Policy.
Liability may be transferred at any time before commencement of the development, unless an application for social housing relief has been made. This can be done by submitting either CIL form - Assumption of Liability, CIL form - Withdrawal of Assumption of Liability, or CIL form - Transfer of Assumed Liability to us, as appropriate. If we are unable to recover CIL from a party that has assumed liability, the liability defaults to the owner(s) of the land.
A CIL Liability Notice will be issued at the time the planning decision is made and issued to the planning applicant, the party(s) that have assumed liability and/or to the landowner. The CIL charge needs to be paid within 60 days of the development starting unless agreed within the term of our Instalment Policy.
CIL will be charged in accordance with the rates set out in the Charging Schedule.
The amount payable is calculated when planning permission is granted, but each year the figure in the charging schedule will be inflated by the All-in tender price index (published by the Building Cost Information Service) at the level in the November prior to the year development is permitted. This is calculated using the formula - net floorspace x multiplier x Permission Year Index (313)/Charge Year Index (237). The payments will be made in accordance with the Instalment Policy.
The following table gives an indication of how the index rates have affected the cost per square meter since adoption of CIL
|All other retail||£25||£26.79||£28.90||£30.17||£33.02||£33.54|
In some cases it may be more appropriate to transfer land to us as part or full payment in kind. Please read our Land Transfer guidance notes for more information.
It may be possible to reduce the CIL liability by discounting the demolition of buildings which have been in lawful use.
In addition, some development types can claim relief from paying CIL:
- Self build dwellings. Please read our Self Build Relief guidance notes for further information
- Self build extensions or annex. Please read our Residential Annex or Extension Relief guidance notes for further information
- Social housing, not including discounted affordable housing. Please read our Social Housing Relief guidance notes for further information.
- Charitable relief. If a charity owns the land the development will be used mainly or wholly for charitable purposes. Please read our Charitable Development Relief guidance notes for further information
- Reserved matters applications, resulting from an outline Section 106 agreement that has been signed before CIL is introduced
- For development in use, class D1, a CIL charge of £0 will be applied. These include medical or health service premises, crèche or day nurseries, educational establishments, museums, libraries, public or exhibition halls or places of public worship.
For all these development types, the Planning Application - Additional Information Requirement form and CIL form - Claiming Exemption or Relief will also need to be completed along with your normal planning application. For self build projects, either the self build dwelling form or self build annex form will need to be completed. Any claim for relief needs to be submitted to us and agreed before the development commences.
You will need to submit a commencement notice to us before the development starts. We will then issue a Demand Notice to the person(s) who has assumed liability to pay the CIL.
The notice sets out the date that the CIL must be paid. This is normally within 60 days. On larger developments where payment exceeds £24,999, payment can made by instalments. For more information please read our Instalment Policy.
Full details are given on the invoice that you will receive with the Demand Notice, and you can use the following methods:
- Online – pay by debit or credit card using our secure online payment facility
- Telephone – we have a 24 hour automated payment line. Please call us free on 0808 1787146 (press option 4) and have your invoice and card details to hand
- Telephone/Internet banking - you can make your payment directly into our bank account, quoting your invoice number. Our Sort Code is 20-26-42 and Account Number 83490173.
CIL payment is mandatory and non-negotiable. If you do not pay on time then:
- You will be subject to a penalty without further notice
- Any agreement to pay by instalment will stop immediately
- You could be subject to a stop notice, surcharges, fines and/or a prison term.
Further information relating to penalties and surcharges is provided in our guidance notes.
The majority of the CIL collected will be spent on infrastructure required to support growth in South Norfolk. All infrastructure spending will be determined through a plan which is published separately and known as the Local Infrastructure Plan and Programme.
A list of funds collected and spent will be published annually on our Community Infrastructure Levy page.
Town and Parish Councils will receive 15% of CIL funds raised in their Town or Parish. A further 10% will be given to those Councils which have an adopted Neighbourhood Plan in place.
Further information relating to the Town and Parish Council proportion can be found in the Parish Spending document.
Before you start your development you must send us:
- CIL form - Assumption of Liability. This form confirms who is responsible for paying the CIL charge relating to the development. If it is not returned then the charge will default to the registered landowner and additional costs may be applied.
- CIL form - Commencement Notice. This form lets us know when your development is going to commence and will form the basis of the date that your CIL payment is due. This form must be returned no later than one day before development commences. If it is not returned a penalty will be added and full payment will be due immediately.
- CIL form - Claiming Exemption or Relief . If you are claiming relief from payment then you must also return this form prior to the commencement of the development. (See our guidance notes for Self Build Relief, Residential Annex or Extension Relief, Social Housing Relief and Charitable Development Relief).
Regularly used forms
Planning Application - Additional Information Requirement Form
Form 1 – Assumption of Liability
Form 2 - Claiming Exemption or Relief
Form 5 – Notice of Chargeable Development
Form 7 – Self Build Exemption Claim Form Part 1
Form 7 – Self Build Exemption Claim Form Part 2
Form 8 - Self Build Residential Annex Exemption Claim Form