Assuming liability
The landowner, developer, or anyone else can take liability for paying CIL by completing and submitting CIL Form 2: Assumption of Liability. Liability can later be withdrawn using CIL Form 3: Withdrawal of Assumption of Liability or transferred to another party using CIL Form 4: Transfer of Assumed Liability.
To claim any CIL relief or exemption, you must first assume liability. Claims for discount, relief, exemption, or phase credits won’t be considered unless liability has been assumed. If no relief or exemption is claimed, liability must still be assumed before development starts on site.
If liability isn’t assumed before development starts:
- liability defaults to the landowner
- the option to pay in instalments is lost.
- the full CIL amount, plus surcharges and interest, becomes immediately payable
- late payment interest will continue to accrue until full payment is made
Once CIL liability is confirmed and notified, a charge is placed on the land. When a CIL Demand Notice is issued, we may apply additional charges to secure payment. These charges are removed once full payment is received.
Reducing your liability
If the development site has an existing building that has been occupied in lawful use and will be kept or demolished, its floorspace can be taken away from the chargeable floorspace under Regulation 40. This is called a lawful use deduction. To get this deduction, the building must have been occupied in lawful use for at least six continuous months during the three years leading up to the date planning permission is granted.
You need to provide evidence of lawful use to claim this deduction. Proof can include 6 months of utility bills, a business rates or Council Tax bill, a headed letter from a solicitor or letting agent confirming the use, or a signed, sworn, and witnessed affidavit from someone who can confirm the use. Leases are not sufficient to prove lawful use. We might ask for more supporting documents. If there is insufficient proof, we cannot reduce the floorspace from the chargeable floorspace.
Other reliefs and exemptions
Relief or exemption from CIL are available in specific circumstances. To claim relief or exemption, you must submit the following with your planning application:
- CIL Form 1: Additional Information or Form 5: Notice of Chargeable Development
- CIL Form 2: Assumption of Liability Form
- Relevant CIL form for the relief or exemption
Types of relief and exemption
Subject to eligibility criteria, the following may be claimed:
- Social housing relief
- Charitable relief
- Self-build exemption
- Residential extension exemption
- Residential annexe exemption
Certain events can disqualify relief or exemption, making the full CIL amount payable. These events are detailed in their claim forms. Failure to notify us of these events may result in surcharges in addition to CIL.
You must also submit a Commencement Notice to the CIL Team at least one day before the development starts. This isn’t required for residential extensions where an exemption has been granted.
Paying CIL
When the CIL process is followed correctly, a demand notice will be issued when development commences, and payment is due in accordance with out instalment policy. If the process is not followed, the full CIL amount must be paid within 60 days of commencement.
To use the instalment option, you must submit before development starts:
- CIL Form 2: Assumption of Liability
- CIL Form 6: Commencement Notice
Failure to submit these forms or make payments on time will result in the full CIL amount being due immediately, with possible surcharges.
Details on how and when to make payments will be confirmed in the demand notice.
Late payments incur interest under Regulation 87 of the CIL Regulations 2010, calculated from the day after payment was due at 2.5% above the Bank of England base rate until full payment is made.
