Latest Community Infrastructure Levy Amendment Regulations come into force

26 February 2014
Practice Group(s):
Real Estate Land Use,
Planning and Zoning
Real Estate
Development, and
Latest Community Infrastructure Levy Amendment
Regulations come into force
By Sebastian Charles and Rebecca Daniels
The latest round of amendments to the Community Infrastructure Levy (CIL) Regulations
2010 have come into force.
Key changes are:
• Phased payment of CIL for hybrid and other multi-phase consents - CIL can be
paid in phases for any phased planning permission (not just for outline consents as
was previously the case).
• The “Vacancy Test” becomes less onerous - The “vacancy test” under which
existing floor space can be set-off against the CIL payable has been extended,
making it easier to claim a reduction. Existing buildings have to be in lawful
continuous use for six months in the last three years (increased from one year). The
three year period is calculated from the date the planning permission first permits
• Infrastructure as “payment-in-kind” - Developers can provide infrastructure as a
“payment in kind” instead of making a CIL cash payment, when the authority has
issued a policy statement to that effect.
• Social housing relief extended to Affordable Rent Units - Rented housing which is
provided at no more than 80% of market rent is eligible for social housing relief. There
is also a new discretionary social housing relief for certain discount market sale
housing, which is allocated in accordance with the authority’s published policy.
• Seeking Exceptional Circumstances Relief becomes easier - Previously
exceptional circumstances relief could only be claimed where a section 106
agreement is in place which imposes a higher contribution to infrastructure costs than
the CIL liability, but this restriction has now been removed which should make
exceptional circumstances relief easier to claim.
• CIL can be set by unit numbers or GIA - Local authorities can now set differential
CIL rates based on gross internal area and the number of dwellings or units
(previously different CIL rates were only set for different zones and uses). This
amendment could provide more certainty on the amount of CIL payable on complex,
multi-phase schemes.
• Restriction on pooling pushed back to 2015 - The date from which local authorities
will be restricted in their use of pooled section 106 contributions is moved back a year
to April 2015. This reflects the slow take-up of CIL by local authorities.
Latest Community Infrastructure Levy Amendment Regulations come into
As the number of authorities that have adopted CIL charging schedules increases, issues
with the current CIL regime continue to come to light. These amending regulations seek
to address some of the problems, but the regime is still in its infancy and so no doubt
further amendments will follow.
Please contact Sebastian Charles or Rebecca Daniels for further information about these
amending regulations or CIL more generally.
Sebastian Charles
Rebecca Daniels
Anchorage Austin Beijing Berlin Boston Brisbane Brussels Charleston Charlotte Chicago Dallas Doha Dubai Fort Worth Frankfurt
Harrisburg Hong Kong Houston London Los Angeles Melbourne Miami Milan Moscow Newark New York Orange County Palo Alto
Paris Perth Pittsburgh Portland Raleigh Research Triangle Park San Diego San Francisco São Paulo Seattle Seoul Shanghai
Singapore Spokane Sydney Taipei Tokyo Warsaw Washington, D.C. Wilmington
K&L Gates practices out of 48 fully integrated offices located in the United States, Asia, Australia, Europe, the
Middle East and South America and represents leading global corporations, growth and middle-market
companies, capital markets participants and entrepreneurs in every major industry group as well as public
sector entities, educational institutions, philanthropic organizations and individuals. For more information
about K&L Gates or its locations, practices and registrations, visit
This publication is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon
in regard to any particular facts or circumstances without first consulting a lawyer.
©2013 K&L Gates LLP. All Rights Reserved.