Community Infrastructure Levy
The Community Infrastructure Levy (CIL) is a charge on development to help fund infrastructure such as transport schemes and schools which is required to help support and accommodate new growth from development
This is set out in our Regulation 123 list (PDF 39KB)
With the adoption of the new Local Plan (2015-2030) in 2018, we are now undertaking a review of its Community Infrastructure Levy (CIL) which sets out the requirements for the charging of CIL in the London Borough of Redbridge. The increased rates from development will be essential to help fund infrastructure needed to support the ambitious growth, as set out in the plan, and mitigate adverse impacts of future development.
The Community Infrastructure Levy (CIL) was introduced in 2012 and is a charge on development to help fund infrastructure such as transport schemes and schools which is required to help support and accommodate new growth from development. Further information regarding its operation is published on our website.
We have prepared economic evidence to support the revised CIL charging schedule. The evidence recommended an increase in the charging levy across the borough, with differential rates and charging areas, as per the regulations. The proposed new charging areas are set out in the Redbridge CIL Draft Charging Schedule (PDF 558KB).
Next Steps in the CIL Review Process:
- Review Responses to Draft Charging Schedule - Jan/Feb 2020
- Submission to Secretary of State - March/April 2020
- Examination - TBC 2020
- Adoption - TBC 2020
Please see below the DCS and the supporting documents:
We have a Community Infrastructure Levy (CIL), which charges developers on most types of new buildings in the Borough. Most of this money is spent on borough priorities such as helping to pay for schools, leisure centres, health care facilities, transport and projects to improve public areas.
Each year, we allocate 15 per cent of CIL money for local projects. Through this consultation, we are asking residents and organisations to submit ideas and suggestions for local infrastructure improvements.
The Redbridge charging schedule applies CIL at a flat rate of £70/m2 across the whole borough. The same rate applies to all types of development. It is calculated on the net increase in gross internal floor area after allowing a credit for any existing floor space which is to be demolished. The charge is updated annually for inflation.
The current indexation means the charge is £104.84/m2 for planning applications decided in 2020.
The Mayor of London operates a Mayoral CIL to help fund Crossrail.
For planning applications where the decision notice was issued on or before 31 March 2019, the charge for developments in Redbridge is £35/m2 plus an update for inflation (meaning planning applications granted in 2018/19 were charged approximately £49/m2).
The legislation for Mayoral CIL means that it expired at the end of the 2018/19 financial year, and has been replaced by Mayoral CIL 2 (MCIL2). This will contribute towards the funding of Crossrail 2.
Crossrail 2 is a proposed new railway serving London and the wider South East. It connects the National Rail networks in Surrey and Hertfordshire via a new tunnel and stations between Wimbledon, Tottenham Hale and New Southgate, linking in with London Underground, London Overground, Crossrail 1, and national and international rail services.
For planning applications decided after 1 April 2019, the charge for developments in Redbridge is £60/m2 plus indexation.
The current rate of Mayoral CIL for applications decided in 2020 is £59.64/m2.
Any Mayoral CIL will be billed for at the same time as the Redbridge CIL and developers will pay one consolidated amount.
Developments that create new-build floor space with a gross internal floor space (GIA) of 100 square metres or more would be liable to pay both the Mayor’s and Redbridge’s CIL. A development involving the creation of a dwelling and new-build floor space of any size would also be liable to pay both CILs.
Planning permissions for this type of development, including those subject to planning appeals, or enforcement appeals and permitted development, could potentially be liable to pay CIL. Developments granted permission through a general permitted development order may also be liable to pay CIL.
The CIL Regulations 2010 (as amended) contains the formulas used to calculate the applicable CIL charges for each development that is deemed to be liable.
Where applicable, the CIL charge for liable developments will be calculated at the time planning permission is granted. In rare cases, permitted development (that is a development which does not require planning permission) may be of sufficient scale to be liable to CIL. It is then the responsibility of the developer to serve a Notice of Chargeable Development to us before the development is started. The CIL charge is then calculated and applied by us just as though planning permission had been issued.
Developers must provide sufficient information to allow us to determine whether the development is liable to pay CIL and to calculate the charges accurately from the floor areas provided.
- the CIL additional information form gives details about existing and proposed floorspace values and the lawful use test and must be submitted with a planning application
- the assumption of CIL liability form names the party that will be liable to pay the CIL charges and should be submitted with the planning application - the assumption of liability can be transferred to another party or withdrawn at a later date and so should not be withheld where land ownership is likely to change (this cannot be accepted if works have commenced)
- if an assumption of liability has been previously completed and the site is sold or someone else wishes to assume to pay the liability, a transfer of assumed liability should be completed and returned (this cannot be accepted if works have commenced)
- certain development types can apply for relief from the payment of CIL. For more information have a look at the development types that are eligible for relief. All reliefs must be applied to us and any decision by them on eligibility for relief must be received before the commencement of a development. Applications should, therefore, be made as early as possible once you have planning permission/consent.
All CIL forms are available from the planning portal.
The Community Infrastructure Levy regulations make a number of provisions for authorities to give relief from the levy. Some types of relief are compulsory, others are offered at the charging authority’s discretion. ‘Community Infrastructure Levy relief’ means any exemption or reduction in liability to pay the levy.
- mandatory charitable relief
- discretionary charitable relief
- mandatory social housing relief
- discretionary social housing relief
- self-build exemption (for a whole house)
- self-build exemption (for a residential annexes or extension)
- exceptional Circumstances Relief
A collecting authority must satisfy itself that by granting relief or an exemption it is not breaching state aid rules. More information about relief and exemptions and copies of the forms are available on the planning portal website
Exceptional Circumstances Relief
The trigger for payment is when work begins, although depending on the amount of the charge, payments may be phased according to our Instalments Policy.
The person who has assumed liability to pay the CIL must submit a commencement notice confirming the start date to us before the work commences.
We will then send a demand notice detailing how to pay and the time frames in which to make the payments.
Monitoring, collection and enforcement of CIL
The CIL payment process is set out in legislation and must be followed. Financial penalties may be applied for failure to do so.
There are strong enforcement powers and penalties for failure to pay, including stop notices, surcharges, late payment interest and prison terms.
If a development is liable for the CIL and works have started, payment is mandatory. Appeals are possible, but only on the following grounds that we:
- incorrectly calculated the amount of CIL. (Before making the appeal the developer must first request an internal review by us)
- incorrectly apportioned liability between landowners
- incorrectly determined Charitable Relief
- incorrectly determined residential annexes/self-build housing exemption
- incorrectly applied surcharges
- deemed the development to have commenced when it did not
- incorrectly issued a Stop Notice for non-payment