Stage 7: Payment
The levy’s charges become due from the date of commencement of a chargeable development. When planning permission is granted, the Council will issue a liability notice setting out the amount of the levy and the payment procedure. Once a Commencement Notice has been received, or development is deemed commenced, the Council will issue a Demand Notice. This will detail who is liable for payment, confirm the amount payable as well as any reliefs or surcharges and it will also specify the dates payment is due.
Community Infrastructure Levy (CIL) & COVID-19 – Payment Deferrals
The CIL Coronavirus Regulations provide the Council with discretion for a limited time to defer CIL payments and disapply late payment interest. This will only apply in certain circumstances and if it is considered appropriate by the Council. The CIL Coronavirus Regulations came into effect on 22nd July 2020 and will remain in effect until 31st July 2021. The measures to defer CIL payments and disapply late payment interest only apply to CIL payments that are payable between 22nd July 2020 and 31st July 2021. This applies to individuals, small and medium sized developers only.
Deferring CIL payments
A developer can request that the Council defer the payment of CIL. A request can be made no more than 14 days before the CIL payment is due.
Requests must be submitted using the CIL Deferral Request Application Form.
The developer must:
- Have an annual turnover of less than £45 million
- Be experiencing financial difficulties because of the effect of Coronavirus which means they are having difficulty in paying CIL
- Have a CIL payment which is payable between 22nd July 2020 and 31st July 2021*
*This can include payments which became due on or after 21st March 2020 and are still outstanding which means payment is required between 22nd July 2020 and 31st July 2021.
CIL Deferral process
- The developer can make a request to the Council, in writing, no more than 14 days before or as soon as practicable after the date the CIL payment is due
- The Council may request information from the developer to help consider a request. The developer must provide such information, in so far as it is in their possession or control, within 14 days beginning with the day on which the request was made. The Council can refuse to grant a request if the information is not provided within 14 days
- The Council must refuse or grant a request within 40 days beginning on the day on which the request is received
- If granted, the Council will provide a payment deferral for 6 months, beginning on the day on which the request was received. The Council will issue a Revised CIL Demand Notice to confirm the amount payable and when payment is due
If the deferred payment date falls between 22nd July 2020 and 31st July 2021, the developer can make a further deferral request. If a further deferral is granted, the new payment date will be 6 months after the original deferred payment date.
Evidence to support a CIL deferral request
With any deferral request, the developer must provide the following:
- Evidence confirming an annual turnover of less than £45 million. This can include:
- A declaration from a responsible person or organisation, such as a chartered accountant or auditor. This can set out what the turnover is and whether the business meets the criteria of sole enterprise or is part of a linked business or has partners
- Information provided to Companies House including the company’s confirmation statement (annual return)
- Confirmation financial difficulties are being experienced as a result of the effects of Coronavirus
Any evidence which the Council requests must be provided within 14 days of the request being made. If the requested evidence is not provided, the Council may refuse a deferral request.
For checking annual turnover to confirm whether a developer is eligible, the following conditions apply:
- The developer is a sole enterprise – it is the turnover of the applicant only which is assessed, as shown in the latest set of accounts
- The developer is part of a group with partners or linked enterprises – the turnover of the applicant, together with the turnover of any linked enterprises, any partners of any linked enterprises, any enterprises linked to any of the applicant’s partners and any enterprise linked to the applicant’s linked companies will be assessed
Please note: it is the responsibility of the applicant/developer to provide all of the above information. Bassetlaw District Council can only consider a payment deferral if all of the above material is supplied and is sufficient.
Refusal of a CIL deferral request
If the Council refuses a deferral request, the developer will have 7 days beginning on the day which the deferral request is refused to make the CIL payment. This includes any late payment interest prior to the deferral request being made.
Right of appeal for a refused CIL deferral request
The CIL Coronavirus Regulations do not provide a right of appeal if a deferral request is refused.
- Government guidance on CIL and Covid-19
- The Community Infrastructure Levy (Coronavirus) (Amendment) (England) Regulations 2020
- General government guidance on CIL
Unlike section 106 agreements, CIL is not a negotiated process. If a development is liable for CIL, payment is mandatory (unless a request for relief has been submitted to and approved by the Council). There are strong enforcement powers and penalties for failure to pay, including Stop Notices, surcharges, late payment interest and prison terms. Detailed information about the possible consequences of not following the CIL process is contained within the note below.
Important – CIL liability is held as a charge on land. If CIL is not paid you may have difficulty selling your land or property.
Last Updated on Thursday, March 4, 2021