What is the Community Infrastructure Levy (CIL) and do I have to pay it?

Full answer

The Community Infrastructure Levy is a planning charge that local authorities in England and Wales can choose to impose on new development. Its purpose is to help pay for the infrastructure - transport, schools, healthcare, open space - needed to support growth in the area. Not every council operates CIL; where it does, the council publishes a 'charging schedule' setting rates per square metre of net additional internal floorspace. Crucially, CIL rates are set locally and vary widely by council and by development type and location, so there is no national figure. The amount you owe is the chargeable floorspace multiplied by the council's rate (index-linked for inflation), so you must check your specific council's charging schedule rather than assume a number. The levy is generally triggered when planning permission is granted and becomes payable when development commences. Who it affects: developers and homeowners creating new floorspace. New dwellings are commonly liable. Householder extensions are often only caught above a size threshold - typically new builds and extensions creating 100 square metres or more of additional floorspace can fall within scope, though smaller works may be exempt. The rules contain important reliefs you must claim before starting work, including a self-build exemption (full relief for someone building or commissioning their own home to live in), self-build residential annexes and extensions, and reliefs for affordable housing and charities. The single biggest pitfall is procedure. CIL exemptions and reliefs are not automatic - you must submit the correct forms and an assumption of liability notice, receive acknowledgement, and serve a commencement notice before any work begins. Miss a step and you can lose the relief entirely and face surcharges, even when you clearly qualified. CIL is distinct from Section 106 planning obligations and from Stamp Duty Land Tax. Because rates and thresholds are entirely council-specific, always confirm figures with your local planning authority's published schedule. For the separate tax on buying property, use a Stamp Duty calculator.

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