Community Infrastructure Levy (“CIL”) has been introduced under the Community Infrastructure Regulations 2010 (and subsequent amendments). It is a new system for raising funds from developers towards the cost of infrastructure works in a local authority area and is intended to be a fairer system than the individual negotiation of section 106 payments.
Sounds fair on paper but in reality it can be a stumbling block on new developments with the additional levy making the development a potential non-starter.
Under the CIL legislation, each local planning authority decide on what form of development and how much to charge in its area, with charging now in place in most councils in England & Wales. The method of charge is set at a rate per square metre of the gross internal area of a building for which permission is given, with certain permitted deductions. One such deduction is a notional offset of the area of buildings previously on the site with the effect of reducing the amount of CIL payable accordingly. To qualify for the deduction, the building must “contain a part that has been in lawful use for a continuous period of at least six months within the period of three years ending on the day planning permission first permits the chargeable development”.
In situations where a building has not been in lawful use for the minimum six-month period within the three years prior to planning permission being granted, through its network of operators across the UK, VSM are able to organise a business operation to run for the required minimum six month period. This can delay the planning process by at least the six months, however the CIL savings can be significant when measured against the cost of such a delay.
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Knowledge of the industry of the past and present helps us guide our clients to the future. This is our main USP to our clients.
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Please feel free to pick up the phone and call to speak directly with one of the partners or with the senior management team.
Vacant Space Management Ltd
335 South Row
Tel: 01908 660552