Community Infrastructure Levy - Draft Charging Schedule (Nov 2014)
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.
