Community Infrastructure Levy fees for small developers?

Community Infrastructure Levy fees for small developers?

11:12 AM, 23rd March 2023, About 2 months ago 5

Text Size

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,


Share This Article


Judith Wordsworth

13:12 PM, 23rd March 2023, About 2 months 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!

nigel grunberg

15:08 PM, 23rd March 2023, About 2 months 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

Simon M

15:18 PM, 23rd March 2023, About 2 months 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 You probably have to notify both your local borough and the Mayor's Office.

The full process is described here: but I often find reading the legislation is clearer than guidance.

nigel grunberg

16:18 PM, 23rd March 2023, About 2 months 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

Darren Sullivan

1:23 AM, 24th March 2023, About 2 months 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?

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now