The Government is inviting feedback on proposals for a new discretionary development charge.

The Levy will be charged on most types of residential and commercial buildings.

The Community Infrastructure Levy (CIL) comes into force in April next year. The charges will be based on simple formulae that relate the size of the charge to the size and character of the development paying it. Payment will be due at the commencement of development and not at planning consent stage. 

The Government says that CIL will be levied on buildings rather than developments. The proposals suggest a ‘de minimus’ threshold of 100m2 for non-residential development, below which CIL will not be payable. Householder developments by homeowners will not be liable for the charges. 

Although a golf course, theme park, marina or quarry would not in itself be liable to pay CIL, any buildings associated with these developments (for example, a clubhouse, a cafe, or an office) could be liable to pay CIL on the same floor space basis as for other buildings. 

The CIL will be charged on most types of residential, commercial and industrial buildings. However, the department has acknowledged that buildings into which people do not normally go – for example, an electricity sub-station visited intermittently for maintenance – could be exempt. 

As the 2008 Planning Act does not define ‘building’ in the same way as in the Town and Country Planning Act 1990, development such as roads, railways, pipelines, overhead cables and wind turbines would not be liable to pay CIL, even though such things are building operations for some planning purposes. 

The LI will be submitting a formal response to the proposals. Any members who wish to add their views should email policy officer Stephen Russell.

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