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Are you up to date with CIL?

The Community Infrastructure Levy (CIL) was adopted by Cornwall Council earlier this year, and charging will commence from 1 January 2019.

CIL is a development land tax which is set at a local level and recovered by the Local Planning Authority (LPA). It will primarily apply to new build properties (which are not self-builds). CIL will be used to raise funds for “local infrastructure” (which should not also be funded through Section 106 Agreements). In comparison Section 106 Agreements will be applicable to affordable housing or site-specific infrastructure requirements.

CIL is charged on a £ per square metre basis in accordance with the rates set out in the charging schedule, which is set by the LPA. The rates payable are therefore non-negotiable. The payment is calculated when the planning consent is granted, but payment is triggered by the commencement of development – this is defined in very broad terms and therefore it is very easy to trigger the payment obligations.

CIL is a local land charge and will be registered in the local land charges register. Potential purchasers need to be aware that if a developer defaults in payment, then liability will run with the ownership of the land and rest with any new land lower.

The regulations governing CIL are complex and the potential CIL liability on development may be significant. In particular, developers are advised to take advice at an early stage to ensure that any CIL liability is correctly reflected in any legal documentation, and any potential liability mitigated.

If you require advice on CIL then please contact a member of our Commercial Property Team on info@charlesfrenchlaw.co.uk.


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