Community Infrastructure Levy (CIL)
CIL becomes an “available” tool to local authorities from April 2010 and is intended to be a means of generating funds for the provision of infrastructure rendered essential as of result of anticipated development within the authority area. It is intended to take the place of Section 106 agreements and all developments over 100m2 will be liable as well as changes of use where planning permission is required. It is anticipated that CIL will impact directly upon land value and therefore will have to be included in development appraisals.
Local authorities cannot impose CIL until such time as they have an adopted Core Strategy and without this the local authority cannot know what the CIL requirements will be.
The Local Authority will be required to publish a Charging Schedule which will be based upon the estimated total cost of infrastructure, other funding sources and assessment of impact on overall viability. Under the Charging Schedule, differential rates will be possible geographically within the local authority area and it is anticipated that the CIL will be based upon £/m2 (gross internal) basis. Liability crystallises on commencement of development which will have to be advised to the local authority by service of a Commencement Notice.
For further advice please speak to Edward Clark on e.clark@dentonclark.co.uk