Community Infrastructure Levy - Draft Charging Schedule (Nov 2014)

Ended on the 15 December 2014
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Appendix 1


Examples of how CIL liabilities are calculated

For the avoidance of doubt, a planning application for the change of use of an existing building will not be liable to CIL unless it involves an extension which provides 100sqm or more of additional floorspace, or involves the creation of a new dwelling even when it is below 100sqm. The amount payable will depend whether or not the existing building has been in continuous lawful use for at least six months in the last 3 years prior to the development being permitted. Mezzanine floors of less than 200sqm are not liable for CIL unless they are to be installed as part of a planning permission which permits other works as well. See below for further details in relation to changes of use.

Scenario 1

The development of a new dwelling in the Zone 1, either detached or attached to an existing dwelling. The new dwelling is 90sqm.
Though the development is less than 100sqm, it results in the creation of a new dwelling and therefore CIL applies.

The CIL charge for residential development in the Zone 1 is £20/sqm.
The calculation is as follows:
90sqm x £20/sqm = CIL liability of £1,800

Scenario 2

The development of an extension to an existing dwelling. The existing dwelling is 105sqm and the extension is 45sqm.
The size of the existing dwelling is irrelevant. The only matter of relevance is the size of the extension. As the extension is for less than 100sqm of development, and does not result in the creation of a new dwelling, CIL does not apply.

Scenario 3

The conversion of an existing dwelling to two flats. The existing dwelling is 105sqm and the conversion will not result in any new build floor space.
The size of the existing dwelling is irrelevant. As the conversion does not result in any new development (i.e. it all takes place within the existing dwelling), CIL does not apply.

Scenario 4

The conversion and extension of an existing dwelling in Zone 2 to form 2 flats. The existing dwelling is 105sqm and the extension is 45sqm.
The size of the existing dwelling is irrelevant here. What is relevant is the level of new build. Although it is only 45sqm, because it results in a new dwelling, CIL applies.

The CIL charge for residential development in Zone 2 is £30/sqm.
The calculation is as follows:
45sqm x £30/sqm = CIL liability of £1,350

Scenario 5

The demolition of an existing dwelling that is considered to be “in-use” (in accordance with the definition in Regulation 40 (11)) in Zone 1 and the construction of a block of flats in its place. The existing dwelling is 120sqm and the block of flats is 1,000sqm.
The development of the block of flats results in the creation of a new dwelling therefore CIL applies. However, because the existing dwelling is “in-use”, its floor space is deducted when calculating the CIL liability.

The CIL charge for residential development in Zone 1 is £20/sqm.
The calculation is as follows:

Process 1 – deduct existing floor-space from new floor space
The chargeable area is 1,000sqm – 120sqm = 880sqm

Process 2 – calculate CIL liability based on the net increase in floor space
880sqm x £20/sqm = CIL liability of £17,600

Scenario 6

The demolition of an existing dwelling not considered to be “in-use” (in accordance with the definition in Regulation 40 (11)) in Zone 1 and the construction of a block of flats in its place. The existing dwelling is 120sqm and the block of flats is 1,000sqm.
The development of the block of flats results in the creation of a new dwelling therefore CIL applies. Because the existing dwelling is not in-use, its floor space is not deducted when calculating the CIL liability

The CIL charge for residential development in Zone 1 is £20/sqm.
The calculation is as follows:
1,000sqm x £20/sqm = CIL liability of £20,000

Scenario 7

The conversion of an office block of 5,000sqm, not considered to be “in-use” (in accordance with the definition in Regulation 40 (11)), to 4,000sqm of retirement housing and 1,000sqm of development for convenience based supermarket over 280sqm.
As the site is not “in-use”, the conversion is considered as new development and the existing floor space is not deducted when calculating the CIL liability.

The CIL charge for retirement housing is £20/sqm
The CIL charge for convenience based supermarkets over 280sqm is £70/sqm
The calculation is as follows:

Process 1 – calculate the retirement housing liability
4,000sqm x £20/sqm = £80,000

Process 2 – calculate the supermarket liability
1,000sqm x £70/sqm = £70,000

Process 3 – calculate the total liability
Retirement housing (£80,000) + supermarket (£70,000) = CIL liability of £150,000

Scenario 8

The demolition of a building of 5,000sqm that is “in-use”, and its replacement with a building of 10,000sqm, comprising 1,000sqm of development for convenience based supermarket over 280sqm, 5,000sqm public funded school and 4,000sqm of hotel development.
The key issue here is that the existing building is “in-use”. Therefore the total amount of existing floor space can be deducted from the CIL liability. As the new building comprises a range of uses, the deduction of the existing floor space is applied on a pro rata basis across the new uses.

The CIL charge for convenience based supermarkets over 280sqm is £70/sqm
The CIL charge for a public funded school is £0/sqm
The CIL charge for hotel development is £10/sqm
The calculation is as follows:

Process 1 – calculate the deduction factor for the existing floor-space
5,000sqm (existing floorspace) / 10,000sqm (new floor space) = 0.5

Process 2 – calculate the supermarket liability
1,000sqm x £70/sqm x 0.5 = £35,000

Process 3 – calculate the school liability
5,000sqm x £0/sqm x 0.5 = £0

Process 4 – calculate the hotel liability
4,000sqm x £10/sqm x 0.5 = £20,000

Process 5 – calculate the total liability
Supermarket (£35,000) + School (£0) + Hotel (£20,000) = CIL liability of £55,000

Scenario 9

The demolition of a building of 5,000sqm which is not “in-use”, and its replacement with a building of 10,000sqm, comprising 1,000sqm of development for convenience based supermarket over 280sqm, 5,000sqm public funded school and 4,000sqm of hotel development.
As the building is not “in-use”, the existing floor space is not deducted when calculating the CIL liability.

The CIL charge for convenience based supermarkets over 280sqm is £70/sqm
The CIL charge for a public funded school is £0/sqm
The CIL charge for hotel development is £10/sqm
The calculation is as follows:

Process 1 – calculate the supermarket liability
1,000sqm x £70/sqm = £70,000

Process 2 – calculate the school liability
5,000sqm x £0/sqm = £0

Process 3 – calculate the hotel liability
4,000sqm x £10/sqm = £40,000

Process 4 – calculate the total liability
Supermarket (£70,000) + School (£0) + Hotel (£40,000) = CIL liability of £110,000

Scenario 10

The conversion of an office block of 5,000sqm, 600sqm of which is “in-use”, to 4,000sqm of retirement housing and 1,000sqm of development for convenience based supermarket over 280sqm.
The size of the existing building is irrelevant. As the conversion does not result in any new development (i.e. it all takes place within the existing building) and part of the building is “in-use”, CIL does not apply.

When CIL is payable on a change of use to an existing building:

  • Additional floorspace 100 square metres or more (or the creation of a new dwelling even when it is below 100 square metres) and existing building in continuous lawful use for at least six months in the last 3 years prior to the development being permitted - CIL payable on new floorspace only
  • Additional floorspace 100 square metres or more (or the creation of a new dwelling even when it is below 100 square metres) but existing building not in continuous lawful use for at least six months in the last 3 years prior to the development being permitted - CIL payable on existing floorspace and new floorspace
  • Additional floorspace less than 100 square metres (where no new dwellings created) but existing building in continuous lawful use for at least six months in the last 3 years prior to the development being permitted - No CIL payable
  • Additional floorspace less 100 square metres (where no new dwellings created) and existing building not in continuous lawful use for at least six months in the last 3 years prior to the development being permitted - No CIL payable

N.B. A change of use which creates one or more dwellings will be CIL liable even if there is no extension, and will only avoid payment if the building has been in continuous lawful use for 6 months out of the last 3 years prior to the development being permitted. However, there is a specific exemption in the 2011 amendment regulations that excludes conversion of a single dwelling house from the meaning of ‘development’ at Regulation 6.

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