UK: The Community Infrastructure Levy

On 23 October 2009 the Department of Communities and Local Government's consultation exercise in respect of the Community Infrastructure Levy ("CIL") closed.

CIL is a proposed new tariff which local planning authorities ("LPAs") may use to charge on most forms of development. The Government believes there is a need for developers to contribute further to the provision of infrastructure and that the current means of doing so through planning obligations (under Section 106 of the Town & Country Planning Act) provides only a partial means of claiming the necessary contributions required for infrastructure growth.

The Government intends to bring the finalised CIL regulations into force on 6 April 2010. This Commentary explores the current proposals and some of the controversies relating to the draft regulations.

The Levy

CIL is effectively a tariff to be levied by LPAs at their option. Before an LPA can choose to charge CIL it must:

  • have an up-to-date development plan for its area which shows broadly the quantum, type and location of development which will be needed in the LPA's area for the duration of the plan; and
  • adopt a charging schedule which will set out the amount of CIL which will be payable in respect of development. This will be based on a formula which is set out in the draft regulations. The charging schedule will be subject to a consultation and examination in public process similar to Development Plan documents. Once it has been adopted by the LPA it will become part of their Local Development Framework.

How Much CIL Will Be Payable?

The Government will allow LPAs to introduce their own rates for their own areas. In setting these rates, LPAs will be required to consider various factors, including the potential effect of CIL upon the economic viability of development as a whole across their areas.

LPAs will also have the flexibility to set different CIL rates for different types of development or for development in different geographical zones.

There will, however, be some standardisation nationally:

  • the rate will be set in pounds per square metre gross internal area floorspace; and
  • the LPAs will have to apply indexation from the date of the adoption of their charging schedule until the grant of the relevant planning permission (the indexation will be set nationally).

Which Developments Will Be Subject to CIL?

CIL will be chargeable on most forms of development, although there are some exceptions. Some of the most notable of these exceptions are:

  • household development by home owners (but not so as to increase the number of dwellings);
  • for non-residential development, there will be a de minimis threshold of a 100 sq.m. GIA increase;
  • changes of use within the same use class under the Town & Country Planning (Use Classes) Order;
  • permitted changes of use between use classes pursuant to the General Permitted Development Order; and
  • a total exemption for developments by charities for charitable purposes.

The Government's apparent intention is that CIL will only be chargeable on developments which are the subject of planning permissions granted after a charging schedule has come into effect in the relevant area. However, the draft regulations would allow for some types of development granted permission prior to the adoption of a charging schedule to be caught by the CIL regime. We can advise clients further on this. We have also sent representations to the Department of Communities and Local Government to point out this flaw.

Who Pays CIL?

Anybody can assume liability for CIL for a given development.

However, if no one assumes liability before the commencement of a development, or if a party who has assumed liability defaults, the owners of the land will be liable.

An assumption of liability may be withdrawn or transferred before the commencement of development.

When Will CIL Be Payable?

Payment will be due on commencement of development under the planning permission. However, if the correct procedures are followed, there will be a 28-day payment window after commencement of development. We can advise clients further on the likely procedures required by the regulations.


The Government proposes to give various new powers to LPAs to deal with breaches of the CIL regulations. For example, LPAs will be empowered to add interest and surcharges to late and unpaid CIL. Moreover, a CIL Stop Notice could require a development to stop if CIL has not been paid. Failure to comply with such a notice would be a criminal offence.

What Will Happen to Section 106?

The Government is proposing to scale back the applicability of planning obligations under Section 106 to allow them only to be used for mitigation of impacts which arise directly and solely from the proposed development. The Government proposes that this scaling back will occur regardless of whether an LPA has adopted CIL in its area. Accordingly, there will be an incentive for LPAs to adopt CIL, otherwise they will not be able to recover contributions from developers for indirect or incremental impacts. The Government proposes a two-year transitional period from 6 April 2010 to allow LPAs to prepare for this change.

It is proposed that affordable housing obligations will still be covered by Section 106.


The draft regulations have attracted some controversy. In particular:

  • the scaling back of Section 106 obligations has proven controversial for some LPAs, who effectively feel that they are being forced to adopt CIL, which was always stated by the Government to be an optional levy. Furthermore, the proposed two-year transitional period for scaling back Section 106 obligations means that LPAs will in practice need to begin their work on CIL sooner rather than later.
  • the Government does not wish to allow developers to offset any contributions made or works done under Section 106 planning obligations against their CIL liability. The British Property Federation (amongst others) is lobbying for a change in this regard.
  • the CIL regime will essentially rely upon local authorities and statutory agencies to undertake certain local and sub-regional infrastructure works, rather than developers. If the need for works arises because of several developments, and so falls within the CIL regime rather than Section 106, the question arises as to whether the authorities will be able to deliver the infrastructure on time and how—in the absence of a legal agreement—developers will have any control on this issue.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.