Further Community Infrastructure Levy Amendment Regulations introduced - Kuits Solicitors Manchester
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Further Community Infrastructure Levy Amendment Regulations introduced

Further Community Infrastructure Levy Amendment Regulations introduced

7th December 2020 - Published by Kuits planning team

Ten years have passed since the original Community Infrastructure Levy (CIL) Regulations 2010 came into force and the tradition of annual or bi-annual amendments carries on. Following the announcement in July that the Community Infrastructure Levy Regulations 2020 would amend the existing CIL Regulations and provide relief by deferring payments for small and medium sized businesses hit by the downturn in the economy, further changes have been made. These new changes are not associated with the impact of COVID-19.

Background

The CIL Regulations 2010 make a number of provisions for charging authorities to give relief or grant exemptions from the levy. Some types of relief are compulsory, others are offered at the charging authority’s discretion. A chargeable development is eligible for relief from liability to CIL where it includes “qualifying dwellings”. A qualifying dwelling is one which meets the conditions to take advantage of the exemptions or reliefs set out in the Regulations, such as social housing relief or exemptions for charitable institutions.

What are the changes?

The most recent set of amendments which came into force on 16 November 2020, the Community Infrastructure Levy Regulations 2020, add a sixth condition which a dwelling can satisfy in order to be considered a qualifying dwelling. In order to be a qualifying dwelling using this new condition, the first sale of the dwelling must be for no more than 70% of the dwelling’s market value. However, there also needs to be a section 106 agreement entered into with the local planning authority which ensures that any subsequent sale of the dwelling remains as no more than 70% of its market value. These Regulations also make amendments to the discretionary social housing relief. Currently, for a dwelling to qualify for social housing relief under the existing Regulations, it must be sold for no more than 80% of its market value, sold in accordance with a published relevant policy of the charging authority and the liability to pay any CIL in relation to the dwelling must remain with the person granted relief.

The 2020 Regulations introduce, as an alternative to the last of these criteria, a requirement that a planning obligation has been entered into which ensures that any subsequent sale of the dwelling is for no more than 80% of its market value. It should be noted that that relief will be withdrawn if a qualifying dwelling ceases to be such before the end of a certain period known as the “clawback period”, which is also amended slightly to accommodate the changes noted above.

Get in touch with a planning solicitor in Manchester

If you would like information on anything mentioned above, please contact Victoria Leam on 0161 503 2998 or email victorialeam@kuits.com

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