Community Infrastructure Levy fees for small developers?
11:12 AM, 23rd March 2023, 3 years ago
5
Hello, I have planning permission to build a one unit flat on top of an existing building (I own the flat below). I also have all the necessary legal documents with the Freeholder.
I advised the council that the works would start in mid-January – I needed to do this in order to avoid reapplying for planning.
Subsequent to this advice, I received the adjusted costings from the main contractors and sub contractors. The costs have in increased substantially in the last two years since the tender was undertaken, making the project financially unviable for the time being.
The council have sent me a final notice re Community Infrastructure Levy (CIL) (Mayor of London and local authority) of around £10k. They advise that the CIL is required to ‘pay and deliver the infrastructure needed to mitigate the impacts of new development’. But there is no new development!
I cannot see how they can charge for something that does not and more than likely will not exist. I would imagine this issue is something maybe facing many other single unit developers.
I want to go back to them and simply say I’m not going to pay, but would like confidence that there is nothing they can do.
Any comments on this subject would be greatly appreciated.
Thank you,
Nigel
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
or
Previous Article
Hike in rented housing tax 'costs Treasury £1.5bn’Related Articles
Fire safety tax for developers could ‘curb UK home building’
3 years ago | 2 comments
Freeholder administration charges for permission to let?
3 years ago | 15 comments
Member Since January 2015 - Comments: 1442 - Articles: 1
1:12 PM, 23rd March 2023, About 3 years ago
Might find it is “development”.
By 1 unit do you meant a studio flat or 1/2/3 bedroom flat?
The infrastructure impact could be introducing another person(s) who would use local facilities, transport, require school places etc. etc.
Don’t think you can get round it, but might be able to mitigate a lower fee, but unlikely as look who’s the LMoL!
Member Since March 2014 - Comments: 6
3:08 PM, 23rd March 2023, About 3 years ago
Reply to the comment left by Judith Wordsworth at 23/03/2023 – 13:12
Hi Judith – it is one two bedroom flat. But it is not happening now – no viable. So in effect no development
Member Since September 2014 - Comments: 166
3:18 PM, 23rd March 2023, About 3 years ago
This may be an automated final notice – my skim reading is you’re not liable until you start any kind of work. Tell them in writing – the council may want to inspect to confirm.
If your liability arises under para 31 then (6) should apply. See https://www.legislation.gov.uk/uksi/2010/948/part/4/made You probably have to notify both your local borough and the Mayor’s Office.
The full process is described here:
https://www.gov.uk/guidance/community-infrastructure-levy but I often find reading the legislation is clearer than guidance.
Member Since March 2014 - Comments: 6
4:18 PM, 23rd March 2023, About 3 years ago
Reply to the comment left by Simon M at 23/03/2023 – 15:18
Thank you Simon – I see what you mean by legislation being clearer than the guidance.
To my specific point if I am not going to undertake the works and create a new dwelling, is the CIL liable
– if in effect no work has been done and the planning period elapses (I presume not)
– if a small amount of work has been done i.e. 0.2% in effect (I hope not)
Look forward to your response
Member Since September 2022 - Comments: 55
1:23 AM, 24th March 2023, About 3 years ago
We paid a 13.3k CIL for a 2 bed bungalow in 2020. Not a nice experience. Surely if you have cancelled the project this will not apply and any project would need buildings regs sign off without it how would they enforce it. You have not built a property. Best way is to tell them the project is terminated there is no new property which should get a new postal address post code from the council so no levy surely?