26 February 2014
Practice Group(s):
Real Estate Land Use,
Planning and Zoning
Real Estate
Investment,
Development, and
Finance
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
development.
• 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
force
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.
Authors:
Sebastian Charles
Sebastian.charles@klgates.com
+44.20.7360.8205
Rebecca Daniels
Rebecca.daniels@klgates.com
+44.20.7360.8219
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