CIL Review - Preliminary Draft Charging Schedule Consultation 16th February - 31st March 2015
In 2013 we were one of the first local authorities to introduce a CIL Charging Schedule, a tax on development to pay for infrastructure. Alongside the Poole Core Strategy Review we are reviewing our CIL Charging Rates. We commissioned viability work to assess the current market conditions and identify new CIL rates. We are seeking your views on whether these rates are deliverable and will not unduly burden landowners and developers from bringing sites forward.
The consultation on the Preliminary Draft Charging Schedule closes on Tuesday 31st March 2015. The consultation document is available to view from the top of the downloads column on this page. Paper copies of the consultation document can be viewed in the Planning Reception at the Civic Centre and at all Poole libraries. For you to get your views to us as quickly and efficiently as possible we would prefer it if comments are submitted online. However, if you prefer you can email your comments to email@example.com with ‘CIL Review’ inserted into the subject box, or post your comments to: Planning Policy & Implementation, Planning and Regeneration Services including Building Consultancy, Borough of Poole, Civic Centre, Poole BH15 2RU.
The Community Infrastructure Levy (CIL) is a new locally set charge which can be applied to most new development to help fund infrastructure in Poole. CIL finance can be used to fund a wide range of infrastructure that is needed as a result of development. This includes new transport networks, flood defences, schools, hospitals and other health and social care facilities, park improvements, green spaces and leisure centres. CIL rates to be applied to development must be set out in a document called a Charging Schedule.
Regulations for CIL came into force first in April 2010 with amended regulations adopted in April 2011 (collectively these are known as "The CIL Regulations"). The CIL Regulations sets out the steps the Council has to take to introduce CIL in Poole and subsequently operate it. The steps that were taken for Borough of Poole to adopt CIL can be accessed on the links below:
Implementation of CIL in Poole
On 31st July 2012 Borough of Poole received confirmation that its Community Infrastructure Levy Draft Charging Schedule subject to Examination in June 2012 provides, subject to one modification, an appropriate basis for the collection of the Levy in the Borough. The Examiner concluded that the Council has sufficient evidence to support the schedule and can show that the levy is set at a level that will not put the overall development of the area at risk. The one modification needed for the schedule to meet the statutory requirements is to:
The Examiner’s report can be found here
Following independent Examination Borough of Poole adopted its Community Infrastructure Levy Charging Schedule on 18th September 2012 with it coming into effect from 2nd January 2013.
Implications of CIL on use of Section 106 Planning Obligations Infrastructure Tariffs
At the point the CIL Charging Schedule takes effect on 2nd January 2013 it will replace the Council’s planning obligation infrastructure tariffs for Transport (as set out in South East Dorset Transport Contributions Scheme 2 SPD), open space (as set out in Planning Obligations: Open Space and Recreation SPG) and Heathland mitigation (as set out in the Dorset Heathland SPD).
This will mean that all planning applications granted planning permission on or after 2nd January 2013 will be liable to pay CIL in accordance with the Borough’s Charging Schedule instead of Section 106 planning obligation infrastructure tariffs.
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How will the Levy be charged
The levy is charged in pounds (£) per square metre on new floorspace (measured as Gross Internal Area) of any given development to which a CIL rate has been set in the Charging Schedule.
CIL Liable Development in Poole
Following assessment of the viability of the development, the adopted Charging Schedule applies CIL rates only on proposals that create new dwellings. All other development types other than proposals that involve the creation of new dwellings are therefore set a £0 per square metre CIL rate.
The CIL Rates
The Charging Schedule sets three different rates on new dwelling development in Poole depending on which part of the borough the proposal is being brought forward. The rates are:-
Charging Zone A - £150 per square metre
Charging Zone B - £100 per square metre
Charging Zone C - £75 per square metre
Please note that all Liability Notices will be adjusted in accordance with the national All-in tender Price Index for the given year. The index for a given year is the figure for 1st November for the preceding year in the national All-in Tender Price Index published from time to time by the Building Cost Information Service of the Royal Institution of Chartered Surveyors. If the All-in Tender Price Index ceases to be published, the figure for 1st November for the preceding year in the retail prices index shall be used instead.
CIL Zones - Interactive Map
The Charging Schedule setting out the residential dwelling rates and charging zone map of the Borough can be accessed on the download section of this page. Alternatively, you check which CIL zone your development site falls in by using the Council’s Your Poole interactive mapping service. Once in Your Poole, you will need to do the following:
1. Find the site by typing the address details into the address search fields;
2. Select the site from the list of addresses that are shown – this will bring the site up on the GIS map shown on the screen;
3. Select the ‘Interactive Mapping’ tab;
4. From the layers that are now shown, select the ‘CIL Zones’ layer – this will then show the applicable CIL Zone to the site on the GIS map shown on your screen.
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Calculation of CIL Liability
CIL liability is calculated by multiplying the applicable CIL rate by the gross internal area of proposed development. However, please note that within this calculation it is possible for the gross internal area of any existing buildings on the site that are going to be demolished or re-used (i.e. conversion of change of use) to be deducted from the total floorspace granted planning permission to ensure that the CIL liability is only applied to new floorspace over and above what is already on a site.
To be able to deduct floorspace that is to be demolished or re-used (i.e. conversion of change of use) the CIL Regulations require that a part of the existing building has to have been in use for a continuous period of at least six months in the 12 months prior to when planning permission first permits development. If this provision is not met the CIL liability is applied to the total gross floorspace granted planning permission.
List of CIL funded infrastructure projects as required by CIL Regulation 123
This list (known as the "R123 List") clarifies all those infrastructure projects and types of infrastructure that will no longer be funded through Section 106 of the Town and Country Planning Act 1990 and instead are to be delivered through CIL in whole or in part with other appropriate funding arrangements.
Borough of Poole CIL Payment Instalment Policy
Borough of Poole will adopt an instalment policy that will set out the payment provisions for CIL.
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CIL Administration and Collection
The Planning Portal have created a CIL webpage that includes an in depth explanation of CIL together with the relevant CIL administration forms and guidance notes and it is recommended that applicants refer to this page prior to making a planning application for development. The Planning Portal forms required to administer CIL can also be accessed from the download section of this page.
In addition to the Planning Portal’s information on CIL, Borough of Poole has also produced a CIL Guide for Developers and Applicants which explains in detail the end to end process of CIL from the grant of planning permission to collection and when each of the CIL forms need to be submitted to the Council. A quick overview of the basic process is provided as follows:
Step 1 - When submitting a planning application you should from 1st November 2012 also include the CIL Additional Information Form. This will enable the Council to determine whether the proposal is liable to pay CIL and capture the necessary information for the CIL liability to be calculated. The CIL Additional Information Form and a guidance note on completing the Form can be accessed from the download section on this page. When planning permission is granted the decision notice will indicate if the development is liable to pay CIL.
If you know at the point the planning application is to be submitted who will be the person or organisation that will pay the CIL liability , you should also submit Form 1 – Assumption of Liability Notice with the planning application.
Step 2 – As soon as is practicable after planning permission first permits development, the Council will issue you with a Liability Notice. The Liability Notice will set out how much CIL is payable at the point the chargeable development is commenced.
Step 3 – Before the commencement of the CIL liable development, the following forms need to then be submitted to the Council:-
the person or organisation who intends to pay the CIL liability will need to submit Form 1 – Assumption of Liability Notice (if not already done when the original application was submitted as advised in Step 1);
If you think your development is eligible for relief or exemption from CIL, you will need to complete Form 2 – Claiming Exemption or Relief;
Following submission of Form 1, you are then required to submit Form 6 – Commencement Notice. Form 6 will notify the Council when the chargeable development is to be commenced to allow us to collect the CIL payable. Form 6 must be submitted before the chargeable development commences and in addition to any notice regarding Building Regulations.
Step 4 – Following receipt of a valid Form 6 Commencement Notice, the Council will then issue a Demand Notice to the person who has assumed liability to pay CIL. The Demand Notice will set out the precise details of the amount of CIL payable and payment options (including where CIL can be paid in instalments in accordance with the Council’s Instalment Policy).
It is also your responsibility to notify us if there in a change in the party liable to pay CIL which can be done through submitting Form 3 – Withdrawal of Assumption of Liability or Form 4 – Transfer of Liability as applicable.
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Relief from the levy is available in a number of specific instances.
Charitable Relief - A charity landowner will benefit from full relief from their portion of the liability where the chargeable development will be used wholly, or mainly, for charitable purposes. A charging authority can also choose to offer discretionary relief to a charity landowner where the greater part of the chargeable development will be held as an investment, from which the profits are applied for charitable purposes. The charging authority must publish its policy for giving relief in such circumstances.
Social Housing Relief - The regulations provide 100% relief from the levy on those parts of a chargeable development which are intended to be used as social housing. The Planning Portal has developed a social housing relief calculator that will assist you to calculate this relief.
Exceptional circumstances relief – this is only available where a charging authority has made it available in their area. Claims from landowners will only be considered on a case by case basis, provided the following three conditions are met:-
Firstly, a section 106 agreement must exist on the planning permission permitting the chargeable development;
Secondly, the charging authority must consider that the cost of complying with the section 106 agreement is greater than the levy’s charge on the development and that paying the full charge would have an unacceptable impact on the development’s economic viability. An assessment of this must be carried out by an independent person with appropriate qualifications and experience. The person must be appointed by the claimant and agreed with the charging authority.
Finally, any relief the charging authority chooses to give must not constitute a notifiable state aid.
If you wish to apply for exemption or relief through these methods, please use ‘Form 2: Claiming Exemption or Relief’ that can be downloaded from this page.
Self build exemption
An exemption is applicable to homes built or commissioned by individuals for their own use. Community group self build projects also qualify for the exemption where they meet the required criteria. If you wish to apply for self build exemption through this method, please use the self build exemption forms that can be downloaded from this page. Further information regarding the self build exemption can be found online here.
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It is important that you submit the CIL Additional Information Form with your planning application, to ensure that your CIL liability is calculated correctly. As soon as practicable after the grant of planning permission we will issue your CIL liability notice. If you disagree with the liability notice, you must first request a review under Section113 of the CIL Regulations. To do this, send a letter stating why you think the liability notice is incorrect, to the Head of Planning & Regeneration Services incorporating Building Consultancy, or email: firstname.lastname@example.org marked "Request for CIL S113 Review".
If this does not resolve the issue, you may then appeal under Section 114, 115 or 116 of the CIL Regulations. You can appeal direct to the Valuation Office Agency
There are also provisions to appeal against the Council taking enforcement action in relation to the non-payment of CIL. Further information on CIL Appeals can be found in the Council’s CIL Guide for Developers and Applicants downloadable from this page.
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