Community Infrastructure Levy (CIL)

The following types of development are exempt from the CIL:

• where no additional floorspace is required
• where the gross internal area of the new build is less than 100 metres squared (unless a new dwelling is created)
• change of use (not creating additional floorspace) where the building has been in lawful use for at least six months in the three years ending on the date the planning permission first permits development
• any development where the total CIL chargeable amount is less than £50
• buildings not normally used by people or only entered by people intermittently for the purposes of inspecting or maintaining fixed plant or machinery 
• developments granted planning permission before 1 April 2024, including outline planning permissions under which reserved matters are approved on or after 1 April 2024
• where planning permission has only been granted for a limited period

Other exemptions and reliefs

We cannot apply the following exemptions and reliefs automatically, so the relevant form to claim the exemption/relief must be submitted prior to the commencement of development:

• Charitable exemption (external link)
• Social housing relief (external link)
• Self-build (new whole house) exemption (external link)
• Self-build (residential annexe or extension) exemption (external link)

Exemptions may be withdrawn if certain events occur, at which point the full CIL amount becomes payable.

A list of disqualifying events can be found at the above website links.

These disqualifying events apply for a three or seven year period, depending on the relief claimed. This is referred to as the clawback period.

If a disqualifying event occurs, you must notify us in writing within 14 days of the event or a surcharge will be applied.

Application stage

Planning applications must be accompanied by:

• Form 1 CIL Additional Information

Applications for permitted development/prior approval must be accompanied by:

• Form 5 Notice of Chargeable Development

Applications will not be validated without the appropriate form.

Applications should also be accompanied by Form 2 Assumption of Liability and claims for any applicable exemptions/reliefs:

• Form 7 Self-build Exemption Claim Part One Form Seven Self-build Exemption Claim Part Two
• Form 8 Residential Annex Exemption Claim
• Form 9 Residential Extension Exemption Claim
• Form 10 Charitable and/or Social Housing Relief Claim

As soon as possible after the grant of planning permission but before building work starts

If not submitted at the application stage, the assumption of liability form (Form 2) and any claims for exemptions/reliefs (detailed above) need to be submitted prior to commencement.

If you submit a form to claim the self build exemption, residential annex or extension exemption, or charitable and/or social housing relief, you must wait for the council’s written decision on your claim before commencing development, otherwise you will lose the ability to claim the exemption/relief.

The Council will issue a CIL Liability Notice to the parties that have assumed liability as soon as practicable after planning permission is granted.

If no one has assumed liability, liability passes to the landowner. Once the Liability Notice is issued, the CIL charge will be registered on the Land Charges Register.

If reliefs or exemptions are claimed and approved (or other changes occur, such as changes to the liable person or surcharges) after we have issued a CIL Liability Notice, we will issue a revised CIL Liability Notice. 

Commencement of development

We must receive a Form 6 Commencement Notice at least one day before work starts on development.

The very latest that Form 6 can be submitted is one day before starting any work. Failure to submit this will result in a surcharge being payable (see below). 

When we receive the commencement notice we will issue a demand notice. This will set out the CIL charge and when it needs to be paid.

You do not need to submit a commencement notice if no CIL is payable because an exemption for residential extensions was granted.

Within six months of completion

If claiming the self-build exemption for a whole dwelling, you need to submit Form 7 Self-build Exemption Form Part Two within six months of completing the self-build dwelling.

For developments with a CIL charge of £50 to £50,000, payment will be due within 60 days of commencement of development.

Developments with a CIL charge of more than £50,000 must make payments in line with the council's CIL instalments policy.

• Download the council's CIL instalments policy

The Demand Notice will set out payment procedures and dates.

Payments can be made online via the council's secure payment portal.

• Visit the council's secure payment portal

Interest is payable in the event of late payment at an annual rate of 2.5 percentage points above the Bank of England base rate. A surcharge for late payment may also be applied, as detailed below.

Upon payment, providing there is no applicable relief and clawback periods, we will remove the CIL charge from the Land Charges Register. Where a relief which is subject to a clawback period is applied, we will remove the CIL charge from the Land Charges Register at the end of the three or seven year clawback period (as applicable).

If the CIL process is not followed correctly, surcharges may be added in accordance with the CIL Regulations

The surcharges have been summarised in the table below:

Reason	Surcharge	Regulation
CIL Form 2 not submitted (failure to assume liability)	£50 for each person liable for payment of CIL	Regulation 80
Where liability has to be apportioned	£500 for each material interest in the land (in addition to the above)	Regulation 81
CIL Form 5 not submitted (failure to submit a Notice of Chargeable Development)	Surcharge equal to 20 per cent or £2,500 of the chargeable amount, whichever the lower	Regulation 82
CIL Form 6 not submitted (failure to submit a Commencement Notice prior to the start of any development associated with the approved development)	Surcharge equal to 20 per cent or £2,500 of the chargeable amount, whichever the lower	Regulation 83
Failure to notify a disqualifying event where an exemption/relief has been granted	Surcharge equal to 20 per cent or £2,500 of the chargeable amount, whichever the lower	Regulation 84
Late payment	Surcharge equal to five per cent or £200, whichever the greater amount, on the outstanding liability after 30 days of the liability being due. Further surcharges apply after six months and after 12 months	Regulation 85
Failure to comply with an Information Notice	Surcharge equal to 20 per cent or £1,000 of the relevant amount, whichever the lower	Regulation 86

 

The council publishes an Annual Infrastructure Funding Statement by 31 December each year.

The statement sets out CIL and Section 106 agreement receipts and spending in the last financial year, together with infrastructure projects or types of infrastructure the charging authority will be - or may be - wholly or partly funded by CIL.

• View the council's Annual Infrastructure Funding Statements

Parish councils receive the following portion (known as the 'neighbourhood portion') of CIL receipts collected from developments in the parish each financial year:

• parishes without a Neighbourhood Plan: 15 per cent capped in the legislation at £100 per existing dwelling in the parish (indexed annually and for 2024 £170.09)
• parishes with a Neighbourhood Plan: 25 per cent uncapped

Parish councils receive payments six monthly - by 28 October for receipts dated 1 April to 30 September, and by 28 April for receipts dated 1 October to 31 March.

Parish councils must spend CIL receipts to support the development of the local council's area - or part of the area - by funding:

• the provision, improvement, replacement, operation or maintenance of infrastructure, or
• anything else concerned with addressing the demands development places on the area

Infrastructure includes roads and other transport facilities, flood defences, schools and other educational facilities, medical facilities, sport and recreation facilities, and open spaces.

The neighbourhood portion must be spent within five years of receipt, otherwise it must be repaid to the borough council.

Parish councils must report spending of CIL receipts in each financial year by 31 December following the end of the financial year. 

The report must cover:

• total CIL receipts
• total expenditure
• summary of items CIL has been spent on and the amount spent on each item
• CIL receipts retained from the year and previous years at the end of the financial year

The council publishes all annual reports on its website.

 

S106 and s278 planning obligations will continue to be used to deliver site specific mitigation for sites that pay CIL. 

This will include the use of s106 and s278 to deliver infrastructure. For example, where education, off-site highways or transport improvements and contributions towards the delivery or future maintenance of public open space (and other types of infrastructure) are necessary to make the development acceptable in planning terms (and meet the other tests in R122 of the CIL Regulations 2010) the use of planning obligations to deliver this infrastructure will continue to be justified. 

Affordable housing and biodiversity net gain will also continue to be delivered through s106. 

In the Rugby Borough Council: Community Infrastructure Levy Viability Assessment Review (BNP Paribas, July 2023) an allowance for residual s106 contribution of £1,500 per unit was made for residential developments and £20 per square metre for non-residential development. It is, however, recognised that site-specific s106 costs will sometimes exceed £1,500 per unit or £20 per square metre. To test the impacts of higher s106 costs on residential development, additional appraisals were run with s106 costs of £5,000, £10,000 and £15,000 per unit. These appraisals demonstrate that in both the rural and urban area, the CIL rates are proposed to be set at a level which means that development can viably absorb higher s106 contributions, where these are required.

This approach was endorsed by the independent examiner in his report on the charging schedule, which stated (at paragraph 38) “The Council has made it clear that infrastructure costs for the defined strategic sites will be fully funded through s106. For other sites which pay a CIL, s106 and s278 will be used for site specific mitigation. This is an uncontentious standard approach used by many authorities.”.

For outline planning permissions which are not phased, the applicable CIL rate will be that in force at the time the permission first permits development under the permission (the date of approval of the last reserved matter). 

A phased planning permission is a planning permission “which expressly provides for the development to be carried out in phases”. Under a phased planning permission each phase will be treated as a separate chargeable development for CIL. The CIL rate for each phase will be the rate that applies on the date that the permission first permits development of that phase (the grant of the last reserved matter in that phase).  

For outline planning permission, CIL Forms 1 and 2 together with forms to claim any applicable reliefs/exemptions should be submitted with the reserved matters submission.

For a section 73 permission revising a planning permission approved before 1 April 2024, CIL will only be charged on any increase in floorspace from the original permission. If there is no increase in floorspace then there will be no charge.

For a section 73 permission revising a permission approved on or after 1 April 2024. the whole floorspace will be liable and chargeable.

More information about CIL can be viewed on the Planning Portal website and in the Government's Planning Practice Guidance.

• Visit the Planning Portal
• View the Government's Planning Practice Guidance

A copy of the Planning Act 2008 and the updated Community Infrastructure Regulations 2010 can be viewed on the Government's legislation website.

• View the Planning Act 2008 on the Government's legislation website
• View the Community Infrastructure Regulations 2010 on the Government's legislation website

The Government's Planning Practice Guidance contains information on the range of CIL appeals available.

• View the Planning Practice Guidance

Details of the independent examination of the council's CIL charging scheduled can be viewed on the council's website.

• View information on the independent examination of the CIL charging schedule

Notices and questions about CIL can be emailed to CILadmin@rugby.gov.uk.