Community Infrastructure Levy: Some Good News for Developers

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The Community Infrastructure Levy (Amendment) Regulations 2012 came into force on 29 November, removing the risk of developers being double charged CIL.

These changes are long overdue, as they correct the ridiculous situation where CIL could be payable on the whole of a development, if only very minor changes were made to the scheme. The amendments give developers the flexibility to vary schemes without the risk of double charging. Section 73 permissions can now return to being a cost effective and efficient tool for developers wishing to have multiple variations of a scheme.

The section 73 problem -

The 2010 regulations originally provided that the grant of a "section 73 permission" would attract the payment of CIL. A developer applies for a section 73 permission when it already has a permission, but would like to vary one or more of its conditions. Even if CIL was not payable on the original permission, and no additional floorspace was permitted by the variation - CIL was payable on the section 73 permission. Understandably, the development industry was extremely concerned at the prospect of CIL being payable each time a scheme was varied.

The Government's solution

Following much lobbying, the Government has addressed this issue in the amendment regulations...

Please see full alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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