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Community Infrastructure Levy Adoption

The Community Infrastructure Levy (CIL) is a new levy which the Council will charge on many new developments.  The money raised will help to pay for the infrastructure needed across Leeds as a result of growth, such as schools, greenspace, flood defences, and transport improvements.
 
CIL Adoption
The CIL was adopted by Full Council on 12th November 2014, and the charges will be implemented across Leeds from the 6th April 2015.  The associated CIL policies were approved by Executive Board on the 17th September 2014.  Please note that any relevant planning applications which have not been granted before 6th April 2015 will be liable to pay the CIL.
 
The Adopted Charging Schedule (April 2015) can be downloaded from the ‘Documents’ tab to the left, along with the Residential Charging Zones Map, Examiner’s Report, Adopted Regulation 123 List, the Instalments Policy, the Exceptional Circumstances Policy, and the Statement of Discretionary Charitable Relief.
 
Charging Zones Map
Detailed map is also provided in order to be able to print out or zoom in at a more detailed scale to identify a particular site or location - Charging Zone Map
 
Implementation of the CIL
A guidance note has been added to this page (see documents tab to the left) explaining in more detail how the CIL process will work, including aspects such as what CIL information will need to be submitted with planning applications. A wide range of ‘Frequently Asked Questions’ can be viewed at the end of the page.
 
The CIL will be charged per square metre on many new buildings, based on their use and location.  It will replace the current tariff based system of planning obligations (Section 106 Agreements). S106s will continue to cover on-site measures that are needed to make a specific development acceptable, such as access works, drainage management, and greenspace.  Provision of affordable housing will also continue as previously.
 
The charges are based on viability and have been approved by an independent Examiner and by Full Council. The Council has to ensure that there is an appropriate balance between the rates being high enough to help fund infrastructure, and not harming the economic viability of development as a whole across Leeds.
 
No decisions have yet been made as to the detailed arrangements of how and where the CIL funds are to be spent, and spending issues are a separate workstream to the CIL Charging Schedule and evidence base.
  
CIL Preparation  
Leeds City Council undertook various stages of formal consultation in preparing the CIL Charging Schedule:
- Preliminary Draft Charging Schedule: 27th March to 15th May 2013
- Draft Charging Schedule: 29th October to 10th December 2013
- Draft Charging Schedule Submission Version (Incorporating Modifications):
   21st March to 17th April 2014
- Examination hearing session: 3rd June 2014
The Examiner’s report did not recommend any substantive changes to the Draft Charging Schedule.
 
The CIL documents from these earlier stages can be accessed via the ‘Documents’ tab to the left, in the document ‘Links to Supporting Evidence and Previous Stages Prior to CIL Adoption.’ 
 
Reference copies of the Adopted Charging Schedule (Nov 2014) will be placed in all libraries and one-stop centres and the Development Enquiry Centre in the Leonardo Building (2 Rossington Street, LS2 8HD).

Who has to pay the levy?

Anyone involved in a development may take on the liability to pay, by submitting the ‘CIL Form 1-Assumption of liability’. In most cases it will be the developer who has applied for planning permission, or the landowner. Where more than one person owns the site and they want to share the liability to pay, the CIL is apportioned between them based on the value of their proportion of the site. If by the time development commences no one has assumed liability to pay the levy, the liability automatically defaults to the landowner(s), but they forfeit the right to pay by instalments.  A person may withdraw or transfer their assumption of liability at any time before commencement by giving notice in writing to the Council.  After the development has commenced, a person cannot withdraw, but instead has to transfer to another person by submitting a liability transfer notice.  ​

When does a development have to pay the levy ?

Charges are due when a chargeable development is commenced. The definition of commencement of development is the same as that used in planning legislation, i.e. ‘material operations’ on the site (see section 56(4) of the Town and Country Planning Act 1990). 
 
This defines a material operation as including any works of construction, demolition, digging foundations, laying out or constructing a road, or a material change in the use of the land.
If planning permission is sought after commencement, the development becomes liable when permission is granted.
 
It may also be possible for a full or outline planning application to be subdivided into ‘phases’ for the purposes of the levy, so that the CIL is only liable on each phase.  This would need to be specified in the description of development on the planning application form and be clear on the planning permission. You are advised to discuss this with the Council before submission.
 
Leeds has an instalments policy for paying the CIL.  If the appropriate instalment amount is not received by the specified date then the whole remaining balance becomes due immediately.

How does the Community Infrastructure Levy collection process work and what forms do I have to submit?

Please see the CIL Detailed Guidance Note’ in the ‘Documents’ tab to the left of the page.

What will the CIL be spent on in Leeds and how does it relate to other developer obligations and the Regulation 123 List?

The CIL Regulations set limits on spending, so after the 6th April 2015 income from only five or less S106 obligations can be pooled towards a specific item or type of Infrastructure.  S106s will continue in order to mitigate site-specific requirements to make an individual development acceptable.  Regulation 123 requires the Council to set out a list of the infrastructure we may fund through the CIL, and S106 and S278 agreements cannot then be spent on the infrastructure on the List (N.B. affordable housing is exempt from the CIL regime and will continue through S106s as present). 
 
The agreed Leeds Regulation123 List is:
- Sustainable transport schemes:
 New Generation Transport (NGT)
 Leeds Core Cycle Network
 The Public Right of Way network
- Leeds Flood Alleviation Scheme (FAS)
- Secondary education
- Primary education, except for large scale residential development  identified in the Site Allocations Plan, which will be expected to  provide primary schools either as an integral part of the  development or as the result of no more than 5 separate planning  obligations
- Green infrastructure and public greenspace, except for on-site provision required by Core Strategy policies
- Community sports facilities
- Cemeteries
- Public realm improvements, except for on-site provision or where this is required as a direct result of an adjacent development
- District heating networks
- Public health facilities
The Reg123 List can be changed at any time although it would not be good practice for this to be too frequent, so it is envisaged that it will be annually reviewed alongside the Authority Monitoring Report.  
 
The levy is intended to provide infrastructure to support the development of an area, rather than making individual planning applications acceptable in planning terms. As a result, some site specific impact mitigation will often still be necessary in order for a development to be granted planning permission, such as on-site greenspace or drainage, and access improvements. A Section 106 planning obligation can only be taken into account when determining a planning application if it is; necessary to make the development acceptable in planning terms; directly related to the development; and fairly and reasonably related in scale and kind to the development.

What is the neighbourhood fund and when is it paid over by the City Council?

​The Regulations require a % ‘meaningful proportion’ of the CIL income generated locally to be passed to local communities for spending as a neighbourhood fund:

Town/Parish Council area without Neighbourhood Plan

• 15% of CIL income in that area
• capped at £100 per existing dwelling per year
• given to town/parish Council to spend 

Town/Parish Council area with adopted Neighbourhood Plan
• 25% of CIL income in that area
• given to town/parish Council to spend 

Non-parished area without Neighbourhood Plan
• 15% of CIL income in that area
• capped at £100 per existing dwelling per year
• spent by LCC in consultation with that community Non-parished area
 
Non-parished area with adopted Neighbourhood Plan
• 25% of CIL income in that area
• spent by LCC in consultation with that community 
 
Where development crosses parish boundaries, each council receives a share proportionate to the amount of the development within their administrative area.
 
The neighbourhood fund can be spent on a wider range of things than the Council’s strategic portion of the levy, provided that it meets the requirement to ‘support the development of the area.’  For instance, this could include affordable housing, or the costs of setting up a neighbourhood plan.  It does not need to be spent directly within the same area as the development, or even in the same parish, as long as the spending will support the development of that area.  The City Council aims that through ongoing working with communities including through neighbourhood plans, there will be defined local priorities, which are agreed and shared to maximise the benefits of spending the income and minimise the impact of new development.
 
The CIL income received by the City Council between 1st November to 31st March will be passed over to the relevant parish/town councils (or available to spend by communities in non-parished areas) by 28th April, and passed over by 28th October for income received between 1st April to 30th September. 
 
It must be remembered that there will not be much CIL income immediately after April 2015 due to the time lags between granting of planning applications (including where sites are phased for later years site in the Site Allocations Plan), then the time it takes to start on site, with larger payments via instalments, and then up to 6 months before LCC passes money over to parish councils. 
 
For each year when they have received neighbourhood funds through the levy, parish and town councils must provide a report of their CIL receipts and spending on their website.

What forms of relief are available from the Community Infrastructure Levy ?

​The Regulations allow the Council to give relief from paying the CIL in certain circumstances. People who are an ‘owner of a material interest in the relevant land’ can claim relief.  A ‘material interest’ is a freehold interest, or a leasehold interest which expires more than seven years after the date on which planning permission first permits development.  The following forms of relief are available and the ‘CIL Form 2 – Claiming Exemption or Relief’ must be submitted to claim any relief:
• Charitable relief
• Social housing relief
• Self build exemption for a whole house
• Self build exemption for a residential annexe or extension
• Exceptional circumstances relief
See the related questions below for further details.

Please see the ‘CIL Detailed Guidance Note’ in the ‘Documents’ tab to the left for further information on how to claim these types of relief.

I want to build my own home ("self build") do I have to pay the CIL ?

Self-build homes are exempt from the CIL, subject to various criteria.  The category of ‘self-build’ applies to anyone who is building their own home or has commissioned a home from a contractor, house builder or sub-contractor (this includes community group self-build projects).  In order to claim exemption from the CIL the owner must submit ‘CIL Form 7 - SB1-1 Self Build Exemption Claim Form Part 1’ and have it agreed by the Council before commencement on site.  The Council will agree to waive the amount of CIL so that you don’t have to pay any CIL on your self-build house.
 
CIL Form 8 - SB1-2 Self Build Exemption Claim Form Part 2’ must then be submitted within 6 months of completing the dwelling, including additional supporting evidence to confirm that the project is self-build. Completion is defined as the issuing of a compliance certificate for this development under either Regulation 17 of the Building Regulations 2010 or Section 51 of the Building Act 1984.  If the evidence is not submitted to the Council within the 6 month time period, the full levy charge becomes payable.  This evidence must comprise:
• Proof of the date of completion - a copy of the building completion or compliance certificate for the home issued by Building Control.
• Proof of ownership – a copy of the title deeds (freehold or leasehold).
• Proof of occupation of the dwelling as the applicant’s principal residence – a Council Tax certificate - and two further proofs e.g. a bank statement or confirmation that the applicant is on the local electoral roll.
• A copy of one of the following:
- An approved claim from HM Revenue and Customs under ‘VAT431C: VAT refunds for DIY housebuilders’; or
- A Specialist Self Build Warranty; or
- An approved Self Build Mortgage from a bank or building society.
 
You must then own the property and occupy it as your principal residence for a minimum of three years after the work is completed.  If within the first three years you want to sell or rent out the property or stop using it as your main dwelling, you can do so but must notify the Council within 14 days of the sale/rent.  The amount of the CIL which was originally waived is then payable in full.  Failure to notify the Council will result in enforcement action such as payment of a surcharge.

I want to build an extension to my house, or a permanent summerhouse or garage or other structure in my garden - do I have to pay the CIL ?

​You will need to submit the ‘CIL Additional Information Form’ in order for your planning application to be valid.  On that form you will have to tick whether your proposal is over 100 sqm of floorspace.  If it is less than 100 sqm and your house is your main residence you will not have to pay the CIL or submit any more forms relating to it.

If your proposal is over 100 sqm of floorspace you will also not have to pay any CIL, as long as you submit ‘CIL Form 9 - SB2 Self Build Annex or Extension Claim Form’ and have it agreed by the Council before commencement on site. 

I want to build a residential annex ("granny flat") in my garden - do I have to pay the CIL ?

If the development is for a residential annex (i.e. a new dwelling such as a ‘granny flat’) within the grounds of the main dwelling, you do not have to pay the CIL as long as you submit the ‘CIL Form 9 - SB2 Self Build Annex or Extension Claim Form’ and have it agreed by the Council before commencement on site.  There is no requirement for the occupier of the annex to be related to the owner of the main dwelling, or to commit to staying there for a specified period.
 
However, the annex will stop being exempt if within three years of completion:
• The main house is used for any purpose other than as a single dwelling, or
• The annex is let, or,
• Either the main residence, or the annex, is sold separately from the other.

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