Minister writes to charging authorities on Community Infrastructure Levy and household developer exemptions

CIL is a set charge on most new development of 100 square metres or more, and new dwellings of any size, in areas where a local authority has approved a charging schedule.

The CIL Regulations were amended in 2014 to exempt self builders, and those who undertake large extensions, or construct residential annexes within their home’s grounds.

In a letter to CIL charging authorities, Mr Pennycook said the Government is aware of some historic cases where householders have failed to obtain an exemption due to procedural errors, which may have been inadvertent or unintentional.

In some cases householders met the qualifying criteria, but did not follow the correct procedures and may not have applied for or received a CIL exemption before commencing development.

There may also have been granted an exemption because retrospective planning permission was granted.

The consultation due later this year will seek “to ensure that these issues do not arise again in the future” and to provide clarity to local authorities over their discretion to take action in specific cases.

Mr Pennycook said he was confident the proposed changes would ensure householders and self builders would not face unexpected liability charges as a result of procedural errors.

He said the Government also recognised historic cases that have already received a CIL charge, or were started before any revised regulations take effect.

Local authorities have “a degree of discretion over the steps they take” to collect CIL and  “it has been brought to the Government’s attention that escalated enforcement actions, including threats of forced sale or criminal proceedings, have led to serious consequences for some individuals and families”, the minister said.

“Such action, or similar, is not required by the regulations without regard to local authorities’ broader legal obligations – and the precise approach to CIL collection in any individual case will depend on the specific facts and circumstances.”

Mr Pennycook noted local authorities could pay ex gratia compensation from their general funds in exceptional CIL cases where those eligible for help had already paid.

Mark Smulian