Save time, do it online: Pay Apply Report

Community Infrastructure Levy (CIL) policies in South Lakeland

The Community Infrastructure Levy (CIL) was introduced by and is regulated in accordance with the (amended 2011, 2012, 2013 and 2014) CIL regulations 2010. We have adopted the following polices in accordance with the regulations. CIL regulations 2010

Find out how we spend CIL and how it fits in with our other policies.

Find out about our charges, exemptions, penalties and how to make an appeal.

Charging schedule

South Lakeland District Council (SLDC) approved this CIL Charging Schedule on 20 May 2015 it came in to into effect on Monday 1 June 2015.

Proposed Charging Rates for South Lakeland

In accordance with Regulation 40 of CIL Regulations (as amended) the following types of development will be liable for CIL in South Lakeland, outside the Lake District and Yorkshire Dales National Parks.

Maps of the CIL charging zones

Proposed rate for CIL

Development type  Proposed levy rate £ per m squared 
 Kendal and Ulverston Canal Head regeneration areas - all development types  0
 Residential  50
 Croftlands strategic housing site, south Ulverston  20
 Agricultural workers' dwellings  0
 Super markets and retail warehouses 150
 Hotels  0
 Sheltered/retirement housing  50
 Extra care housing  0
 All other uses  0

Formula for charging CIL

The formula for calculating the chargeable amount is set out in full in Part 5 of the Community Infrastructure Regulations 2010 (as amended). In summary the amount of CIL chargeable is calculated as follows:

CIL Rate (£) x net chargeable floor area (m2) x BCIS index figure (at date of planning permission) divided by BCIS Index figure (at the date of implementation of the Charging Schedule).

This calculation multiplies the CIL rate by the net new floor area and then adjusts the results to take account of inflation (BCIS index figure)

the CIL Rate (£ m2) is the applicable rate from the above schedule

  • the net chargeable floor area (m2) is the gross internal floorspace of the development minus the gross internal floorspace of any existing buildings that are to be retained or demolished, provided they have been in continuous lawful use in accordance with CIL Regs (as amended). Where there is more than one use class on a development, the chargeable amount in each class is calculated separately and then added together to provide the total chargeable amount. However where the amount is less than £50 the chargeable amount is zero
  • The BCIS Index Figure (%) is an annually updated measure of inflation published by the Building Cost Information Service (BCIS) of the Royal Institute of Chartered Surveyor (RICS)

CIL is charged on new development over 100m2 or any new dwellings if these are less than this size. Gross internal floorspace includes everything within the external walls of a building, including lifts, stairwells and internal circulation areas, but not the thickness of the external walls or balconies. Residential floorspace includes new dwellings, extensions, conversions, garages or any other buildings ancillary to residential use. Affordable housing and self-build housing are exempt from CIL.

Use definition

The following use definitions apply:

  • dwelling House – the CIL charge applies to the residential definition in the Town and Country Planning (Use Classes Order) 1987 – C3 a, b, c
  • agricultural Workers Dwelling – dwelling in which the occupancy of the property is limited (usually by condition) to those employed in agriculture
  • supermarkets are shopping destinations in their own right where weekly food shopping needs are met and which can also include non-food floorspace as part of the overall mix. The majority of custom at supermarkets arrives by car, using the large adjacent car parks provided
  • retail warehouses – are large stores specialising in the sale of comparison goods (such as carpets, furniture, and electrical goods) DIY items and other ranges of goods catering mainly for car borne customers
  •  sheltered/Retirement Housing - is for older people and people requiring support with a reasonable degree of independence and no or limited care needs and falls within Use Class C3
  • extra Care Housing – residential accommodation and care to people in need of care and falls within use class C2

Discretionary social housing relief policy

This document is published in accordance with Regulation 49B of the Community Infrastructure Levy Regulations 2010 (as amended).

It gives notification that Discretionary Social Housing Relief is available in South Lakeland. This policy came into effect on 1 June 2015.

Our planning policy on the provision of affordable housing is set out in Policy CS6.3 – Provision of affordable housing within the Core Strategy. The Community Infrastructure Levy Regulations 2010 (as amended) allows for 100% relief for the development of social housing.

The definition of Social Housing is set out in Regulation 49 (as amended) and it covers most types of affordable housing provided in South Lakeland including affordable rent and shared ownership tenures. However, it does not cover shared equity tenures or discounted homes for sale which are covered by the definition of affordable housing in the National Planning Policy Framework.

The Community Infrastructure Levy Regulations (Amendment) Regulations 2014 give Councils the power to allow relief for these tenures where they set a policy giving notice that the relief is allowed in their area. This is known as Discretionary Social Housing Relief. A dwelling can qualify for this relief if:

  • the dwelling is sold for no more than 80% of its market value
  • the liability to pay CIL in relation to the dwelling remains with the person granted the relief should a disqualifying event occur

If within seven years of completion a disqualifying event occurs, the relief granted would have to be paid back to the Council. A disqualifying event would be where the house is sold on the open market.

To ensure that the viability of affordable housing schemes and mixed tenure schemes is maintained there is a need to ensure all forms of affordable housing qualify for relief from CIL. This document therefore gives notice that Discretionary Affordable Housing Relief is available in South Lakeland.

Instalment policy

Introduction

We adopted an Instalment Policy, with effect from 1 June 2015. This instalment policy does not apply if any one or more of the following applies:

a. A commencement notice has not been submitted prior to commencement of the chargeable development
b. On the intended date of commencement

i. Nobody has assumed liability to pay CIL in respect of the chargeable development;
ii. A commencement notice has been received by SLDC in respect of the chargeable development; and
iii. SLDC has not determined a deemed commencement date for the chargeable development and, therefore, payment is required in full

c. A person has failed to notify South Lakeland District Council of a disqualifying event before the end of 14 days beginning with the day on which the disqualifying event occurs.
d. An instalment payment has not been made in full after the end of the period of 30 days beginning with the day on which the instalment payment was due.

Instalment policy

Our instalment policy is based on the proposed number of dwellings or the level of per square metre of non-residential development. The payment amounts and payment periods are shown in the table below.

Number of dwelling/ 1,000 m squared non - residential development 

Number of instalments 

Total timescale for instalments 

Payment amounts   Payment periods
 0 to 1  2  270 days (9 months)  10%  60 days (2 months) from commencement
 0 to 1  2  270 days (9 months)  90%  270 days (9 months) from commencement
 2 to 5  3  365 days (1 year)  10%  60 days (2 months) from commencement
 2 to 5  3  365 days (1 year)  45 %  270 days (9 months) from commencement
 2 to 5  3  365 days (1 year)  45 %  365 day (1 year) from commencement
 6 to 25  3  548 days (18 months)  10%  60 days (2 months) from commencement
 6 to 25  3  548 days (18 months)  45%  365 day (1 year) from commencement
 6 to 25  3  548 days (18 months)  45%  548 days (18 months) from commencement
 26 to 50  4  730 days (2 years)  10%  60 days (2 months) from commencement
 26 to 50  4  730 days (2 years)  30%  365 day (1 year) from commencement
 26 to 50  4  730 days (2 years)  30%  548 days (18 months) from commencement
 26 to 50  4  730 days (2 years)  30%  730 days (2 years) from commencement
 51 to 100  5  1,095 days (3 years)  10%  60 days (2 months) from commencement
 51 to 100  5  1,095 days (3 years)  22.5%  365 day (1 year) from commencement
 51 to 100  5  1,095 days (3 years)  22.5%  548 days (18 months) from commencement
 51 to 100  5  1,095 days (3 years)  22.5%  730 days (2 years) from commencement
 51 to 100  5  1,095 days (3 years)  22.5%  1,095 days (3 years) from commencement
 101 to 200  6  1,460 days (4 years)   10%  60 days (2 months) from commencement
 101 to 200  6  1,460 days (4 years)   18%  365 day (1 year) from commencement
 101 to 200  6  1,460 days (4 years)   18%  548 days (18 months) from commencement
 101 to 200  6  1,460 days (4 years)   18%  730 days (2 years) from commencement
 101 to 200  6  1,460 days (4 years)   18%  1,095 days (3 years) from commencement
 101 to 200  6  1,460 days (4 years)   18%  1,460 days (4 years) from commencement
 201 to 300  7  1,825 days (5 years)  15%  60 days (2 months) from commencement
 201 to 300  7  1,825 days (5 years)  15%  365 day (1 year) from commencement
 201 to 300  7  1,825 days (5 years)  15%  548 days (18 months) from commencement
 201 to 300  7  1,825 days (5 years)  15%  730 days (2 years) from commencement
 201 to 300  7  1,825 days (5 years)  15%  1,095 days (3 years) from commencement
 201 to 300  7  1,825 days (5 years)  15%  1,460 days (4 years) from commencement
 201 to 300  7  1,825 days (5 years)  15%  1,825 days (5 years) from commencement
 301 plus  8  2,190 days (6 years)  10%  60 days (2 months) from commencement
 301 plus  8  2,190 days (6 years)  13%  365 day (1 year) from commencement
 301 plus  8  2,190 days (6 years)  13%  548 days (18 months) from commencement
 301 plus  8  2,190 days (6 years)  13%  730 days (2 years) from commencement
 301 plus  8  2,190 days (6 years)  13%  1,095 days (3 years) from commencement
 301 plus  8  2,190 days (6 years)  13%  1,460 days (4 years) from commencement
 301 plus  8  2,190 days (6 years)  13%  1,825 days (5 years) from commencement
 301 plus  8  2,190 days (6 years)  12%  2190 days (6 years) from commencement

In all cases the full balance is payable on occupation/opening of the development if this is earlier than the due instalment dates set out above.

Failure to make the payments in line with the times set out in the Instalment Policy at any stage will result in the total unpaid balance becoming payable immediately.

In summary, to benefit from the CIL Instalment Policy, the relevant forms must be submitted to the Council prior to the commencement of the chargeable development, and all payments must be paid in accordance with the CIL Instalment Policy.

Surcharges and interest

The following is in line with Part 9 of the Community Infrastructure Levy Regulations 2010 (as amended). It has been approved by South Lakeland District Council and is effective from 1 June 2015.

Please note this policy on surcharges and interest does not seek to cover the range of enforcement measures which are available to the Council which are set out in more detail:

  • Planning portal
  • 2010 CIL Regulations (as amended)

Failure to assume liability

We will impose a surcharge of £50 on each person liable to pay CIL in respect of a chargeable development if:

1.nobody has assumed liability to pay CIL in respect of the chargeable development; and
2.that the chargeable development has commenced.

Apportionment of liability

When we are required to apportion liability to pay CIL between each material interest in the relevant land, we will impose a surcharge of £500 in respect of each of those interests.

Failure to submit a notice of chargeable development South Lakeland will impose a surcharge equal to 20% of the chargeable amount payable in respect of the development or £2,500 whichever is the lower amount.

Failure to submit a commencement notice

When a chargeable development has commenced before we receive a valid commencement notice we will impose a surcharge equal to 20% of the chargeable amount or £2,500 whichever is the lower amount.

Disqualifying events

If a person who is required to notify the relevant authority of a disqualifying event, fails to do so before the end of the period of 14 days beginning with the day on which the disqualifying event occurs, we will impose a surcharge equal to 20% of the chargeable amount or £2,500, whichever is the lower amount.

Late payment

When the CIL payment due is not received in full after the end of the period of 30 days beginning with the day on which the payment is due, we will impose a surcharge of 5% of the monies due or £200 whichever is the greater amount.

Failure to comply with an information notice

When a person fails to comply with any requirement of an information notice before the end of the period of 14 days beginning with the day on which the notice is served, we will impose a surcharge of 20% of the relevant amount of £1000 whichever is the lower amount.

Late Payment Interest

If CIL payment due is not received on the date it is due, late payment interest will be added. Late payment interest is calculated from the period starting on the day after the payment was due and ending on the day the unpaid amount is received, at an annual rate of 2.5% above the Bank of England base rate.