Coronavirus (COVID-19): Community Infrastructure Levy
In response to the spread of coronavirus (COVID-19), the Ministry of Housing, Communities and Local Government (MHCLG) has published guidance for local authorities on Community Infrastructure Levy (CIL) and Section 106 matters.
We are keen to work with developers to minimise the stalling of development sites as far as possible.
The Government announced that they would give CIL charging authorities a discretion which is applicable for a limited time (in certain prescribed circumstances and if it is considered appropriate) to defer CIL payments, to waive late payment interest and surcharge payments; and to credit interest already charged to developers.
Do I still need to make my CIL payments?
Yes, we will be continuing to process CIL matters and issue Liability Notices as development is granted permission. Payment of CIL is triggered by commencement of development. However, the CIL Coronavirus Regulations allow for:
- the deferral of CIL payments
- disapplying late payment interest
- crediting interest already charged to developers
Who does the CIL payment deferral apply to?
The CIL payment deferral provisions apply, temporarily, to small and medium sized developers (SMEs) with an annual turnover not exceeding £45 million allowing them to make a request to defer a CIL payment if:
- they have received a Demand Notice; and
- the CIL payment is due between 22 July 2020 and 31 July 2021; and
- they are experiencing financial difficulties for reasons connected to the effects of coronavirus.
The CIL payment deferral request process
Any developers wishing to make a formal deferral request can do so by sending the CIL Deferral Request Form to the Council at firstname.lastname@example.org no more than 14 days before, or as soon as practicable after the date the CIL payment is due.
We can request as much information from the developer they reasonably need to consider the deferral request. Developers must provide that information, in so far as it is in their possession or control, within 14 days of the request being made.
We will make a decision to grant or refuse the request within 40 days of receiving the request. We may grant a deferral request for no more than 6 months beginning with the day we receive the request in writing. We will not charge late payment interest or a surcharge while they are considering the request.
Where the deferral is refused, then the deadline for the payment (including any late payment interest and surcharge that accrued prior to the deferral request being made) will be within 7 days, beginning with the day on which the deferral request is refused.
CIL payment deferral requests will be considered on a case by case basis.
The CIL coronavirus regulations do not provide a right of appeal if a deferral request is refused.