If a development has commenced and is liable for CIL, in accordance with the Community Infrastructure Levy Regulations 2010 (as amended) its payment is mandatory (unless relief or exemption has been granted).
This note sets out the enforcement powers and penalties which may apply for a failure to pay a CIL liability. These powers are established under Part 9 of the CIL Regulations 2010 (as amended).
Surcharges, Interest and Payment Terms
The Demand Notice and associated invoice will specify the amount due and the date(s) by which payment must be made to the Council.
Where a payment is not received by the specified due date, late payment interest must be paid. Late payment interest is calculated for the period starting on the day after the payment was due and ending on the day the unpaid amount is received. It is calculated at an annual rate of 2.5 percentage points above the Bank of England base rate.
The Council may also apply a surcharge for late payments where a payment has not been received in full 30 days after the date in which it was due. This surcharge is equal to 5% of the unpaid amount or £200, whichever is the greater amount. Further surcharges may then apply if payment has not been received in full 6 months after the due date and again at 12 months after the due date.
If the Demand Notice allows for payment to be made in instalments and any one instalment is not received in full on or before its due date, the full remaining unpaid balance of CIL charge becomes payable in full immediately and the right to pay in instalments is lost.
CIL Stop Notice
A Collecting Authority may believe that late payment interest and surcharges will be ineffective in securing payment of an overdue CIL liability. In such circumstances, the authority may decide it is necessary to serve a CIL Stop Notice on the relevant development.
A CIL Stop Notice prohibits any activity associated with the development from being carried out on the land until full payment has been made. A person who contravenes a CIL Stop Notice or causes or permits the contravention of the notice has committed an offence and is liable on summary conviction, or on conviction on indictment, to a fine.
If the Council believes the service of a CIL Stop Notice is necessary, it will first issue a notice warning of its intention to do so. A warning notice will be served on the person liable for the unpaid amount, each person known as an owner or occupier of the land and any other person materially affected. A copy of the warning notice will also be displayed on the site itself.
If the unpaid payment has not been received in full by the date specified in the warning notice (which will be no more than 28 days), the CIL Stop Notice will be served. The stop notice will have effect from the date specified in the notice until it is withdrawn by the Council. The stop notice must be withdrawn when the unpaid amount has been paid in full.
Liability Order
Where payment has not been received in full within 7 days of a reminder notice, the Council may apply to a magistrates’ court for a Liability Order against the person liable to pay the unpaid amount. A Liability Order may be enforced by the seizing and sale of assets of the debtor against whom the order was made. Assets seized may include land holdings you possess.
Commitment to prison
Where the Council is unable to recover the full amount of the debt by seizing and selling the debtor’s assets, the Council may ask a magistrates’ court to issue a warrant committing that person to prison.
Last Updated on Monday, January 26, 2026