Community Infrastructure Levy (CIL) is a type of development charge that is put on planning approvals by Local Authorities, to capture the value uplift gained from the development. The monies collected are put towards local projects and infrastructure. There are a range of exemptions to the payment which can be applied for, including a self-build exemption for those undertaking their own home projects.
Lots of developers like to amend their schemes partway through to help reduce costs or to improve the build. Another bathroom, bedroom, dormer, changes to landscaping etc are all common in building. The planning system caters for these changes via a specific application for retrospective planning permission, known as a Section 73a planning application. However, CIL exemptions and reliefs on this retrospective part of the development can be tricky.
Developments that are consented through retrospective permission granted under a Section 73a application are generally not able to obtain relief or exemption if the works have already been undertaken, because CIL must be applied for prior to the commencement of the scheme. Therefore, if you amend a scheme and this includes adding to the floorspace, you may be liable to new CIL payments. In addition, if you are replacing a previous permission which has been subject to a relief or exemption then this is not carried forward. Recently I came across a case where the owners of a house who had successfully gained consent for a two storey rear extension, side extensions and loft conversion, decided it was more cost effective and easier to demolish the house and rebuild. They commenced works and submitted a S73a for a replacement dwelling. Planning permission was granted, but CIL exemptions could not be carried forward, and because the works had commenced then exemptions could not be applied for. A CIL bill of £60k was incurred.
If changing your project do take CIL into account, and do talk to us before implementing your alterations.