CIL faqs
What is CIL?
CIL stands for the Community Infrastructure Levy. It is a charge on new development to help fund supporting infrastructure across Shropshire. CIL is used to meet infrastructure needs resulting from new development.
When did the CIL come into effect?
Shropshire Council was one of the first local authorities to introduce a CIL Charging Schedule. The Schedule was adopted on 1 January 2012 and applies to all eligible development approved after this date.
The rates within the schedule were informed by an economic viability assessment and consultation with both the general public and the development industry. The Schedule was also subject to examination by an independent inspector from the Planning Inspectorate.
Is my development liable for CIL?
Within Shropshire, CIL applies to all development that involves:
- The formation of one or more new dwellings, (including holiday lets), either through conversion or new build, regardless of size (unless it is ‘affordable housing’)*; or
- The establishment of new residential floorspace (including extensions and replacements) of 100sqm or above
*The council’s definition of “affordable housing” is contained in Appendix G of the Type and Affordability of Housing Supplementary Planning Document (2012).
If your development is liable for CIL you must submit CIL Form 1: Determination of CIL Liability alongside your planning application. This form provides the information required to determine the CIL liability for a development.
Failing to submit this form may delay the validation of your planning application and determination of your CIL liability. However, validation of your planning application without submission of this form does not necessarily mean that your development is not liable for CIL. At the very latest, CIL Form 1: Determination of CIL Liability must be submitted prior to the commencement of development.
Development implemented under general consent, including permitted development
Development permitted under general consent, including permitted development can also be liable for CIL. If your general consent is liable for CIL you must submit CIL form 5: Notice of Chargeable Development prior to commencing your development.
Failure to submit this form prior to commencement of development can delay determination of your CIL liability and will result in a surcharge.
Unsure if your development is liable for CIL?
Please complete the relevant CIL form (CIL Form 1 or CIL Form 5). The CIL Team will then determine whether the development is or is not liable for CIL.
How is CIL calculated?
A CIL liability is calculated using the gross internal area of all CIL liable buildings within a development. The gross internal area of a building is the area of a building measured to the internal face of the perimeter walls at floor level (over each floor of the development) - in accordance with the Royal Institute of Chartered Surveyors (RICS) Code of Measuring Practice.
A development is liable for CIL if it involves the formation of a new dwelling of any size or if it involves extensions to an existing dwelling of over 100sqm before making deductions for existing floorspace that is to be converted or demolished.
CIL is calculated on a per sqm rate. Please see the CIL charging schedule for further information regarding the charging rates for CIL in Shropshire.
What CIL charging rates are there in Shropshire?
The relevant charging rate depends on the location of the development within Shropshire. There are two CIL rates which are defined as ‘urban’ and ‘rural’. Please view the Shropshire Council CIL charging schedule for the locations for each CIL rate.
What is indexation and how does it affect the calculation of CIL?
Shropshire Council is required to apply an indexation of inflation to each CIL rate to keep CIL responsive to market conditions. From 1 January 2020, the index is the RICS CIL Index published by the Royal Institute of Chartered Surveyors. A new index is published for each calendar year which varies the CIL rates in Shropshire on a yearly basis.
The CIL rate for a particular development is determined by the year in which planning permission was granted for that development.
Shropshire Council will publish an annual CIL rate summary for the following calendar year in December to set out the upcoming CIL rates.
Please see the CIL charging schedule for further information regarding the charging rates for CIL in Shropshire.
What are the current CIL rates for Shropshire Council?
The CIL rates for permissions granted in 2021 are as follows:
- Urban zone - £59.46 per sqm
- Rural zone - £118.93 per sqm
These rates are subject to indexation each year which may result in these rates changing on a yearly basis. Please see the annual CIL rate summary for further information on the CIL rates for the relevant year.
My development involves the demolition of an existing building. Does this affect how the CIL is calculated?
The floorspace of the building(s) to be demolished can be offset against the proposed chargeable floorspace. This is on the basis that part or all of the building(s) have been in lawful use for a continuous 6 month period in the 3 years prior to the approval of the planning application. The benefit of this for the liable party would be a reduced CIL liability since the calculation would use the net increase in floorspace, rather than the gross floorspace of the chargeable development.
Evidence must be provided to demonstrate part or all of the building(s) have been in lawful use for the required timescales. In the absence of sufficient evidence, Shropshire Council will deem the buildings to not be ‘in-use’. This means a CIL deduction will not be made for the existing building(s).
My development involves the conversion of an existing building. Does this affect how the CIL is calculated?
The floorspace of the building(s) to be converted can be offset against the proposed chargeable floorspace. This is on the basis that part or all of the building(s) have been in lawful use for a continuous 6 month period in the 3 years prior to the approval of the planning application. The benefit of this for the liable party would be a reduced CIL liability since the calculation would use the net increase in floorspace, rather than the gross floorspace of the chargeable development.
Evidence must be provided to demonstrate part or all of the building(s) have been in lawful use for the required timescales. In the absence of sufficient evidence, Shropshire Council will deem the buildings to not be ‘in-use’. This means a CIL deduction will not be made for the existing building(s).
My development involves a listed building. Does this affect how CIL is calculated?
If a building is listed, this has no bearing on the calculation of CIL. The guidance regarding CIL and the demolition and conversion of existing buildings in the questions above applies also to listed buildings.
When will the CIL liability for a development be determined?
The CIL liability for a development will be determined following approval of the Planning Application. A CIL Liability Notice will be issued indicating the CIL liability and charge for a development. This will be issued to either the party who has assumed liability or the landowner.
How does a Section 73 application which amends a planning condition affect a CIL liability?
If the section 73 application does not change the amount of chargeable floorspace proposed, the CIL liability will not be changed. The chargeable amount is that shown on the most recent Liability Notice issued in relation to the previous permission.
If the section 73 application changes the amount of chargeable floorspace, the CIL liability will be changed. The most recently commenced or re-commenced scheme will be chargeable.
Who is responsible for the payment of CIL?
The landowner(s) of the land upon which the development is to take place is responsible for the payment of the CIL liability, unless another party(ies) assumes liability for the CIL prior to the commencement of development. Liability for CIL can be assumed by either:
- Submitting the Shropshire Council recommended CIL Form 1: Determination of CIL Liability, and completing Section 12: Assumption of Liability; or
- Submitting CIL form 2: Assumption of Liability.
I have previously submitted an assumption of liability, however I will no longer be involved with the development. Can I withdraw my assumption of liability?
An assumption of liability can be withdrawn at any time prior to the commencement of development, by submitting CIL form 3: Withdrawal of Assumption of Liability. This will only need to be completed by the party withdrawing the assumption of liability. Current dated photographs of the whole development site will need to be submitted to demonstrate work has not commenced.
Liability will then default to the current landowner, until such time as a new assumption of liability has been submitted.
I have previously submitted an assumption of liability for a development, however I have sold the relevant land to another party. Can I transfer my assumption of liability to the new owner?
An assumption of liability can be transferred at any time prior to the final CIL payment date by submitting CIL form 4: Transfer of Assumption of Liability. A transfer of assumed liability can therefore occur after the commencement of development. Both parties would need to complete the form.
What is a liability notice?
A document issued to the liable party to confirm the CIL liability which will be payable should development commence. This notice is issued to the party who has assumed liability and the owner of the relevant land on which the development will take place.
Are there any exemptions available from CIL?
Exemptions are available in limited circumstances where the relevant conditions are met. Please see the exemption section of the CIL website to determine whether you are eligible to claim an exemption.
What is meant by the commencement of development?
For the purposes of CIL, development commences when a material operation in accordance with Section 56(4) of the Town and Country Planning Act (1990) takes place. This Act defines a material operation as:
- Any work of construction in the course of the erection of a building
- Any work of demolition of a building
- The digging of a trench which is to contain the foundations, or part of the foundations, of a building
- The laying of any underground main or pipe to the foundations, or part of the foundations, of a building or to any such trench which is to contain the foundations or part of the foundations
- Any operation in the course of laying out or constructing a road or part of a road;
- Any change in the use of any land which constitutes material development.
Do I have to submit anything for CIL between the approval of my planning application and the commencement of development?
Should your development be liable and chargeable for CIL, a CIL Form 6: Commencement Notice must be received by Shropshire Council at least one day prior to the commencement of development. The submission of CIL Form 6 is required to enable payment in accordance with Shropshire Council’s CIL Instalment Policy and also to avoid potential surcharges.
Should development commence in the absence of CIL Form 6, Shropshire Council will be required to deem a commencement date. Payment of the CIL liability will be required in full immediately and a surcharge will be imposed.
An assumption of liability must also be submitted prior to the commencement of development to enable the payment of CIL in instalments.
A CIL Form 6 will not be required for a CIL liable development will be when the liability has been calculated as £0.00 because of an existing building deduction. A CIL Form 6 is also not required for a development which benefits from a residential extension exemption resulting in the CIL liability being calculated as £0.00.
Developments benefiting from any other type of CIL relief will be required to submit a CIL Form 6 to avoid an imposition of a surcharge.
It is the applicant’s responsibility to ensure CIL Form 6: Commencement Notice has been received by the collecting authority before they start the development.
All CIL forms are available here.
My development benefits from a residential extension exemption. Do I need to submit a CIL Form 6: Commencement Notice?
Developments benefiting from a residential extension exemption resulting in the CIL liability being calculated as £0.00 are not required to submit a CIL Form 6: Commencement Notice.
Any development which still has a CIL liability following the approval of a residential extension exemption will need to submit a CIL Form 6: Commencement Notice.
My development benefits from a self-build exemption. Do I need to submit a CIL Form 6: Commencement Notice?
You are required to submit a CIL Form 6: Commencement Notice.
- Where a Liability Notice relating to the exemption was issued prior to 1 September 2019, and a CIL Form 6: Commencement Notice was not received prior to the commencement of development, the exemption will be withdrawn and CIL will become payable.
- Where a Liability Notice relating to the exemption was issued on or after 1 September 2019, and a CIL Form 6: Commencement Notice was not received prior to the commencement of development, the exemption will not be withdrawn. A surcharge will however be imposed for failure to submit a commencement notice.
What is a demand notice?
A document issued to the liable party to confirm how much and when payment of CIL is required in relation to a development. A Demand Notice is issued following the submission of a CIL Form 6: Commencement Notice, or a decision by Shropshire Council to deem that development has commenced.
Can CIL be paid in instalments?
Shropshire Council has published a CIL Instalment Policy. This enables the payment of CIL provided the following conditions are met prior to the commencement of development:
- An assumption of liability has been received
- A CIL Form 6: Commencement Notice has been received
Should these conditions be met, the Demand Notice will confirm CIL will be payable in instalments. Otherwise, the full CIL liability will be due immediately upon commencement of development.
What is a disqualifying event for the purposes of a self-build exemption?
Disqualifying events for self-build exemptions include but are not limited to:
- Any change in relation to the Self-Build housing or Self-Build communal development which is the subject of the exemption such that it ceases to be Self-Build housing or Self-Build communal development;
- A failure to comply with the requirements of CIL Form 7-2: Self-Build Exemption, in full, within the period of six months of the date of the building completion notice.
- The letting out of a whole dwelling or building that is Self-Build housing or Self-Build communal development
- The sale of the Self-Build housing
- The sale of the Self-Build communal development
I benefit from a self-build exemption and development has completed on the relevant dwelling. Do I need to do anything for CIL?
You are required to submit CIL Form 7-2: Self-Build Exemption within 6 months of the date of the compliance certificate for the new dwelling. A compliance certificate will issued under either Regulation 17 (completion certificates) of the Building Regulations or Section 51 of the Building Act 1984 (final certificates).
You must provide the documentation stated on CIL Form 7-2, which will demonstrate the dwelling is occupied by you as your sole or main residence.
What is CIL spent on?
CIL income from new development can be spent on anything that constitutes "infrastructure" as defined by Regulation 216 of the 2008 Planning Act and the CIL Regulations (as amended). This includes but is not limited to roads and other transport facilities, flood defences, schools and other educational facilities, medical facilities, sporting and recreational facilities, and open spaces.
A proportion of CIL receipts are passed to the local council where the development took place. The local council is responsible for the spend of this proportion of CIL.
Please see the most up to date Annual Infrastructure Funding Statement for information of what CIL has been spent on and projects which Shropshire Council’s proportion of CIL may be spent on. Further information on the allocation of CIL can be found here.
Can I appeal against the CIL liability relating to my development?
In certain circumstances you can appeal against our decision in relation to your CIL liability. Full details of the various forms of appeals available is available within the Communities and Local Government National Planning Practice Guidance.
If you disagree with the calculation of your CIL liability you may request a review under Section 113 of the CIL regulations. To do this, please submit correspondence marked ‘Request for S113 Review’ stating why you think the liability notice is incorrect.
- It can be emailed to: CIL@Shropshire.gov.uk
- It can be posted to: Shropshire Council, CIL Team, Planning Policy - 5th Floor, Shirehall, Abbey Foregate, Shrewsbury, Shropshire, SY2 6ND
Such a request must be made in writing and received by us within 28 days of the date on which the CIL liability notice was issued. It must also be received and determined prior to the commencement of development, unless the planning permission was retrospective. If this review doesn't resolve the issue to your satisfaction, you're entitled to an independent appeal under Section 114 of the CIL regulations by contacting the Valuation Office Agency (VOA). Such an appeal must be made no later than 60 days from the date which the CIL liability notice was issued, and be received and determined prior to the commencement of development, unless the planning permission was retrospective.
A review cannot be undertaken under Section 113 if development has already commenced.
All appeals are subject to eligibility criteria and specific timescales for submission, as specified within the national CIL regulations (as amended). Further information on the types of CIL appeals can be found within the Communities and Local Government National Planning Practice Guidance.
Are there any guides for CIL?
We've developed a series of guidance notes including:
- Developer Resource Packs (Lite, Standard and Technical); and
- CIL & S106