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In addition
to the economic downturn that has
had a depressing effect on new
development, landowners and
developers alike now face
uncertainty as to how the new
Community Infrastructure Levy will
affect them.
What is the Community
Infrastructure Levy?
It is a tariff which local planning
authorities will have the option to
impose on most forms of development.
How much will be charged?
Local planning authorities will be
allowed to introduce their own rates
for their own areas so each
authority will have to consider such
factors as to what effect the charge
will have upon the economic
viability of the particular
development. Different rates for
different types of developments may
be set but some charges will be
standardised. Rates will be based on
gross internal floor area. The
charge will be subject to indexation
from the date the charging schedule
is adopted.
What developments will be
affected?
You may have thought that it would
only apply to large scale
developments but this is not the
case. There are some exceptions
however eg:
- Development by a homeowner
where the number of houses is
not increased
- Development up to 100m˛
gross internal area on
non-residential development
- Change of use within the Use
Classes Order
- Charitable exemptions
Who pays?
Anyone can assume the liability to
pay so it will be down to
negotiation between the landowner
and developer. In the event of
payment default the ultimate
responsibility will fall on the
landowner. Landowners and developers
will be involved in tough
negotiation on this issue. As
payment will be due on commencement
of development, a land owner who has
granted an option or has entered
into an agreement conditional upon
the granting of planning consent
with the developer will be
particularly concerned to ensure
that the developer does not commence
development before the disposal of
the land has been completed.
Who enforces the charge?
Local planning authorities will have
new powers and will be able to
impose interest and surcharges for
late or non-payment. Non-payment
could lead to the issue of a “stop
notice” and failure to comply with
it will be a criminal offence.
When does the charge come into
operation?
The local planning authority must
first have an up to date development
plan and adopt a charging schedule
which will be based on a formula set
out in the draft CIL Regulations
which will be finalised by 6 April
this year. The charging schedule
will be subject to public
consultation in the same way as a
development plan. Once adopted it
becomes part of the local
development framework.
If you wish to discuss any issues
arising from this article please
contact
Barry Challender at our
Blackburn office on 01254 297912. |
Copyright 2006 - 2010 Taylors Solicitors
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Land
Owners and Developers Await Outcome
of Proposed