Community Infrastructure Levy No 5 - Exemptions and Reliefs from CIL

At present there are few exemptions and reliefs from CIL in the Planning Act 2008 (as amended). They include the following:

• social housing;
• charity exemption;
• charity relief;
• the 10 percent relief
• relief through CIL rates.

Social housing;
There is no charge of CIL on any development intended for social housing. Thus, a housing association will be exempt and also a private sector developer who builds some social housing as part of the project.

However, if the private developer, for instance, should later switch some or all of the social portion for private housing the charging authority may clawback the amount of relief from CIL which should have been paid.

Charity exemption;
Explicit exemption from CIL is given to a charity which builds a projevct which will be used for charitable purposes.

Charity relief
The charging authority has power to forego CIL on a charity's non-caharitable project where the proceeds of the project are later used for charitable purposes. (The charging authority must have a written policy on the application of this relief.)

Rebuilding upto 110 percent relief.
If a person rebuilds a building there will be no charge to CIL provided the extent of the rebuild is not more than 110 percent of the original building.


Discretionary Relief through CIL Rates
To the extent that the charging authority has adopted variable rates of CIL in its charging schedule according to the type of building, a relief could be said to be applied  to buildings charged at the lower rates.


Discretionary reliefs for Type of Development
A charging authority may apply an exeption to certain types of building, eg Shropshire County Council does not charge CIL on employment-related buildings.

Viability relief
Where the imposition of CIL would cause the project to be unviable so that the developer would not wish to proceed with the project, the charging authority may consider a request that CIL relief be given. Each case must be exceptional and an independent evaluation of the project must be conducted.

Community Infrastructure Levy No 4 - CIL Charging Authority - Contracting Out

A draft order has been published, namely the Local Authorities (Contracting Out of Community Infrastructure Levy Functions) Order 2011.

Arising from the Planning Act  2008, it will allow a CIL authority to appoint a contractor to carry out some of its CIL functions, namely functions given in Part 11 of the 2008 Act except for four functions which are withheld from the contracting out provisions (see articles 3 (a), (b), (c), and (d)).

Community Infrastructure Levy No 3 - CIL Charging Policy

This post looks at charging policies and begins with a look at various rates, exemptions, and exceptions. Some policy has a foundation in the Planning Act 2008 (as amended) and in the regulations. Examples of implemented policy will be used to illustrate the subject. [Updates will explore the implementation further.]  

In Shopshire, there are two charging zones, namely: 

• that for Shrewsbury, market towns and key centres; and,
• that for the rest of the county.

Subject to some housing exceptions, housing, ie private sector housing in the county, takes the brunt of the charging policy. 

Insurance Rebuilds
It may be noted that modest extensions escape the charge unless they exceed 100 square metres. It seems that rebuilds after a destructive fire would be included: but an insurance-covered replacing of a destroyed home with two or more dwellings may cause problems!

Rates
CIL is charged at £40 per metre squared on newly build housing in the following settlements:

• Shrewbury;
• the market towns; and,
• key centres.  

Elsewhere the charging rate is £80 per square metre. Thus, it seems, other settlements, eg the villages which are not "key centres" will bear the brunt. [The Shopshire website on CIL has not explored in detail and there is a lot of it!] 

Effective Date:
The CIL scheme for Shopshire begins on 1 January 2012. Developers of housing who get planning permissions next year and thereafter will face the charge. 
"Nil" rate
For the time being there are some nil rate of CIL categories as follows:

• affordable housing has a nil rate;
• employment-related developments have a nil rate;
• other non-housing developments have a nil rate 

One supposes that nil rate means that at some time one or more of these categories could come within the charge but I would not expect affordable housing to ever be charged...?



 http://www.shropshire.gov.uk/planningpolicy.nsf/open/63C27CBEAE1E06AF80257922004CC8E3
The kinds of concerns which developers need to check include:

• Does CIL apply to my development?
• What rate applies?
• Can I pay by instalments?