Community Infrastructure Levy (CIL)

Runnymede Community Infrastructure Levy (CIL)

The Community Infrastructure Levy (CIL) Regulations came into force in April 2010 and provide Borough and District Councils, as 'charging authorities', with a mechanism to raise money from development in their area to fund infrastructure. The money raised will be used to help fund infrastructure to meet the needs of the community (such as improvements to roads, schools, parks, playgrounds and other community facilities), and therefore support growth. It will still be possible to secure some funding through section 106 agreements, but this is likely to be scaled back and more often be restricted to more site-specific requirements. For further guidance please see the Council's Infrastructure Delivery & Prioritisation SPD

Areas of the Borough with neighbourhood plans in place will secure 25% of the CIL revenues generated in their area for infrastructure in their area. This falls to 15% in areas which do not have a neighbourhood plan in place.

CIL is a non-negotiable charge, which in Runnymede will apply to Residential and Office developments and is calculated on a £ per square metre basis, charged on the net level of development proposed. 

Under the Community Infrastructure Levy Regulations 2010 (as amended), there are some mandatory exemptions from liability to pay CIL, particularly for social housing schemes, charitable development, residential extensions, annexes and self-build housing.

Runnymede CIL Charges

In order to charge the Levy, the Council must set out the levy rates it wishes to charge development in a CIL Charging Schedule. The Runnymede CIL Charging Schedule was subject to public consultation and independent examination during 2020 and sets rates for residential and office developments.

The Charging Schedule was approved by a meeting of the Council on the 9 February 2021 with the recommendations made by the CIL Examiner and will come into effect on the 1 March 2021.

The CIL Charging Schedule as approved is available to view below along with a Section 213(3B) Report setting out how the Council has taken account of the CIL Examiners recommendations. The Examiner's report and other examination documents can still be found on the CIL Examination webpage

Icon for pdf CIL Charging Schedule [1.16MB]

Icon for pdf Section 213 (3B) Report [59.13KB]

The CIL charging zones as shown on Plan 1 in the Charging Schedule can also be viewed as a layer on the Council's maps

Copies of the Charging Schedule and Section 213(3B) Report will be made available in the usual public places subject to Covid-19 restrictions.

What this means

Only development proposing residential and/or offices where net additional floorspace is 100 square metres (sqm) or more or proposes 1 or more dwellings is affected by the CIL charge. All other development will not be liable for CIL in Runnymede.

Any planning application for residential/office development of 100sqm or more or which proposes 1 or more dwellings and which remains undetermined or is registered on or after 1 March 2021 will be liable for the CIL charge subject to the exemptions/reliefs set out in the CIL Regulations.

As such, Applications for residential and/or office developments should now be accompanied by a CIL Additional Information form which is available on the Planning Portal website (form 1). It would also be beneficial for applicants to submit an 'Assumption of Liability' form (form 2) at this stage.

Permitted Development

Development permitted by the General Permitted Development Order (GPDO) including prior approvals may also be liable for the CIL charge. Any residential/office development permitted by the GPDO which commences on or after 1 March 2021 and is for 100sqm or more of net additional floorspace or 1 or more dwellings may be liable subject to the exemptions/reliefs in the CIL Regulations.

Applications for Lawful Development Certificates (LDC) for a proposed use and prior approvals, or where development will commence on or after 1 March 2021 must submit a 'Notice of Chargeable Development' to the Council before commencing development.  The Notice of Chargeable Development can be found on the Planning Portal website (form 5).

Exemptions & Reliefs

The CIL Regulations set out exemptions or reliefs for certain types of development. This includes exemptions for residential extensions/annexes and self-build housing as well as relief for social housing and charitable development.

Where development qualifies, these exemptions are mandatory, but must be applied for and granted by the Council before development commences.

If you consider that your development benefits from a CIL exemption or relief you can apply using the forms on the Planning Portal website (forms 7-10).

Payment by Instalments

The Council has made available payment of the CIL charge by instalments. The number of instalment payments and the amount to be paid in each instalment is dependent on the total CIL chargeable for a development and is set out in the Council's Icon for pdf Instalment Policy [14.04KB].

Calculating the Levy

CIL charges are based on the net amount of floorspace in square metres coming forward with a development. The existing or proposed floorspace of a development is measured using Gross Internal Area (GIA) and the Council will use the RICS Code of Measuring Practice, 6th Edition, 2015 to determine what constitutes GIA for the purposes of calculating the Levy.

In general terms any internal area of all floors including rooms, circulation space such as lifts and floorspace devoted to corridors, toilets, storage, conservatories, garages and other ancillary buildings are included but roof spaces which are not useable rooms e.g. accessed by loft ladder/loft hatch or void areas are not.

To ensure that the chargeable area is calculated correctly, existing and proposed floor plans should be drawn at a metric scale (typically 1:50 or 1:100) and must include a scale bar. Each floor should be clearly titled (typically as ground floor, first floor etc). Demolition of existing buildings or walls should be clearly shown. The GIA of all relevant areas should be included within the CIL Additional Information Form.

When verifying your GIA calculations the Council will accept a 1-5% margin of error.

In accordance with Schedule 1 of the CIL Regulations (as amended) where part of an existing building has been in lawful use for a continuous period of 6 months within the past three years, parts of that building that are to be demolished or retained can be taken into account in calculating net floorspace.

Where an existing building does not meet the six-month lawful use requirement, its demolition (or partial demolition) is not taken into account.

However, parts of that building that are to be retained as part of the chargeable development can still be taken into account if the intended use following completion is a use that is able to be carried on lawfully and permanently without further planning permission in that part on the day before planning permission first permits the chargeable development.

CIL Calculator

The Council will be providing a CIL calculator in due course. The calculator will allow applicants to estimate their CIL charge and should be used for guidance only as it is not a formal determination of CIL liability.

CIL Calculator Coming Soon

Indexing

Schedule 1 of the CIL Regulations requires collecting authorities to apply an index of inflation. There are two index values the Council must apply, the first is the index value when the Charging Schedule was adopted (Ic) and the second is the index value on the date that planning permission was granted (Ip).

The Index figure for a given year is the figure published by the Building Cost Information Service (BCIS) of the Royal Institution of Chartered Surveyors 

on the 1st November in the preceding year. From the 1 January 2021 local authorities in areas which charge the levy should use the figure for 1 November for the preceding calendar year (2020) which is 333. For 2021 the value of Ic and Ip will be the same at 333 and the index figure for Ic at 333 is now fixed for the duration of the current Charging Schedule. The table below shows the index figures for Ic and Ip for 2021 and will be updated annually to show the change in the index figure for Ip. When calculating the index of Ip/Ic the Council will round to 2 decimal places.

BCIS Index figures for 2021

Index Value for Ic

333

Index Value for Ip

333

 

Requirements Prior to Commencement of Development and the Collection Process

The following forms must be submitted to the Council prior to commencement of development:

Assumption of Liability Form
Commencement Notice

These forms are available on the Planning Portal website

On receipt of the Assumption of Liability Notice the Council will issue a Liability Notice where permission has been granted. The Liability Notice states how much CIL is payable and when. Where no one has assumed liability to pay CIL and the Council is aware that the development has started, the liability will default to the owner (s) of any material interest in the land. Where it is one person, they are responsible for payments. Where it is more than one person, the Council will apportion liability.

On receipt of the Commencement Notice a Demand Notice will be issued for the CIL payment, setting out the payment due dates in line with the Council's Instalments Policy.

On commencement of development you should follow the correct payment procedure. The Council will issue a receipt for each payment received.

WARNING: If no one has assumed liability to pay the CIL charge or a Commencement Notice has not been received by the Council prior to development commencing, the CIL charge will be payable in full rather than by instalments.

Surcharges and Enforcement

Failure to submit the necessary forms to the Council, failure to notify the Council of changes, failure to comply with the terms of the notices and late payments will be subject to surcharges as set out in Regulations 80-86 of the CIL Regulations 2010 (as amended). The surcharges range from £50 - £2,500. Interest may also be applied to late payments in accordance with CIL Regulation 87.

Icon for pdf List of Surcharges and Interest [14.55KB]

In case of persistent non-compliance the Council may take more direct action and issue a CIL Stop Notice which prohibits development from continuing until payment is made and the stop notice is withdrawn.

The Council can also apply to the magistrates' court allowing it to seize and sell assets of the liable party and in a very small number of cases apply to send the liable person to prison for up to 3 months.

If you feel that enforcement action is unwarranted or has been taken in error, you are encouraged in the first instance to contact the Council. This is because it may be a lot quicker and easier to resolve the issue by contacting the levy collecting authority first before taking more formal action.

Right of Appeal

If you consider the levy set out in your Liability Notice to be incorrect, you can ask the Council to review the calculation. Such a request must be made in writing within 28 days of the date on which the Liability Notice was issued. You may also submit appropriate evidence to support your request to the Council. The Council will notify you of the decision of the review within 14 days of receiving your request. However, where development is commenced before you received notification of the decision, the review will lapse and the original amount will become due for payment as set out in the Demand Notice.

If you are dissatisfied with the decision of the Council's review or you have not been notified within 14 days you may appeal to the Valuations Office Agency (VOA). You can also appeal to the VOA against the apportionment of liability.

VOA Appeals Guidance (link is external)

You can appeal to the Planning Inspectorate against a surcharge or if you consider a levy enforcement action to be unwarranted or taken in error.

Planning Inspectorate CIL Appeals Guidance

Further Guidance

Further guidance on the Runnymede CIL will be made available on this website in due course. In the meantime further advice can be found on the Planning Portal webpages or on gov.uk website.