In certain circumstances we can give relief from paying CIL. People who are an owner of a material interest in the relevant land can claim relief. A material interest is a freehold interest, or a leasehold interest which expires more than seven years after the date on which planning permission first allows development. The following forms of relief are available and the relevant forms must be submitted to claim any relief:
- Charitable relief
- Social housing relief
- Self build exemption for a whole house
- Self build exemption for a residential annexe or extension
Relief due to COVID-19
The Community Infrastructure Levy (Coronavirus) (Amendment) (England) Regulations 2020 are a temporary measure in response to the economic impact of COVID-19.
These Regulations came into effect on 22 July 2020 and will remain in effect until 31 July 2021. The measures to defer CIL payments and disapply late payment interest only apply to CIL payments that are payable between 22 July 2020 and 31 July 2021. This applies to individuals, small and medium sized developers only, with an annual turnover of less than £45 million who are experiencing financial difficulties because of the effect of coronavirus. You may request that a CIL payment is deferred for a maximum of 6 months by completing the CIL Deferral Request Application Form. If the Deferral Request is granted and the end of the 6 month period falls before 31 July 2021 then a further request may be made for deferral by the developer.
The Deferral Request should be submitted no earlier than 14 days before the CIL payment is due. The Council can request further information which should be provided within 14 days. The Council has 40 days within which to grant or refuse the Deferral Request. The Council may grant a deferral for no more than 6 months from the date the Deferral Request was received. If the Deferral Request is refused the developer has 7 days from date of refusal to make the CIL payment. There is no right of appeal against a refusal.
View the full guidance (currently refers to draft guidance until updated by government but is correct for the new legislation).
With any Deferral Request, you must provide the following evidence:
- A copy of the relevant CIL Demand Notice
- Evidence confirming an annual turnover of less than £45 million. This can include:
- A declaration from a responsible person or organisation, such as a chartered accountant or auditor. This can set out what the turnover is and whether the business meets the criteria of sole enterprise or is part of a linked business or has partners
- Information provided to Companies House including the company’s confirmation statement (annual return)
- Evidence confirming financial difficulties are being experienced as a result of the effects of Coronavirus
The CIL Team will undertake the following:
- Consider the Deferral Request as soon as practicable after it is received.
- If necessary, request evidence to ensure compliance with the conditions that apply to a the Deferral Request.
- Must grant or refuse to grant in writing that request as soon as practicable, and in any event before the end of the period of 40 days beginning with the day the Council receives such a request.
What happens once a decision is made?
- Where a Deferral Request is granted a revised CIL Liability Notice and Demand Notice will be issued with amended details and payment due date.
- Where a Deferral Request is refused the Applicant / Agent will be advised and payment of the original CIL Demand Notice will required within 7 days.
To find out more about Deferral Request Applications or request an application form contact the CIL team.