How much will I have to pay?  

Eligible developments that receive planning permission from 1 September 2013 will be charged in accordance with the rates set out in the Charging Schedule. The amount payable is calculated when planning permission is granted.

Can I pay in instalments? 

If the liability is over £50,000 payment can be made in instalments as set out within the Instalment Policy that allows payments to be spread over a longer period of time. Please note that this Instalment Policy will not be available if liability has not been assumed and Commencement Notice has not been submitted before the relevant development commences or if payments are not made in time. 

Payment 'in kind' 

Southampton City Council will consider requests for the part or full payment of CIL by the provision of land or infrastructure.

What happens if I don’t pay the CIL? 

If the CIL remains unpaid or the process is not followed correctly the council may take any or all of the following actions, in order to recover the debt, as based on the CIL Regulations.

  • Removal of the instalment facility
  • Impose surcharges and late payment interest
  • Issue a CIL Stop Notice
  • Seek authorisation from the courts to seize and sell assets to recover the CIL due
  • Seek committal to prison

How is the CIL calculated? 

The Community Infrastructure Levy (CIL) is calculated on new Gross Internal Area (GIA) floor space (sq m), best practice for measuring GIA is set out within RICS: Code of Measuring Practice 6th Edition (2007).

The calculation involves multiplying the CIL charging rate by the additional (new build) floor space, and factoring in an index figure to allow for changes in building costs over time.

CIL Charge = Net additional new build floor space (A) x CIL Rate (R) x Inflation index (I)

Where:
A = the net area of floor space chargeable in square metres after deducting any existing floor space and any demolitions, where appropriate.
R = the levy rate as set in the Charging Schedule
I = All-In Tender Price Index of construction costs in the year planning permission was granted, divided by the All-in tender price index for the year the Charging Schedule took effect. (During 2013 this value was 1 because the two figures were the same).

Existing floor space that has been in continuous use for a period of 6 months within the 3 year period preceding development being permitted can be used as deductible floor space from the total CIL charge. The onus is on the applicant to demonstrate continuous lawful use.

CIL Indexation 

CIL payments must be index linked from the year that CIL was introduced to the year that the planning permissions is granted. The index we must use is the national All-In Tender Price Index published by the Build Cost Information Service (BCIS) of the Royal Institute of Chartered Surveyors.

What is included as ‘CIL chargeable floorspace’? 

Gross Internal Area (GIA) measured to the internal face of the perimeter walls of each floor of the building, including circulation and service space such as corridors, storage, toilets, lifts etc and the existing floor space of a building. Generally, any structure with 3 or more walls and a roof is considered to be ‘internal’ floor space and therefore chargeable. Buildings ‘into which people do not normally go’ are exempt from CIL. These include buildings into which people go intermittently for the purpose of inspecting or maintaining fixed plant machinery.

The change of use of a floor space where a self contained residential unit will be formed is also chargeable if the existing continuous use cannot be demonstrated.

What is ‘continuous lawful use’? 

Floorspace subject to demolition or resulting from change of use can only be deducted from the CIL charge where it has been in continuous lawful use for at least 6 months in the 3 years prior to a development being permitted and it is in situ on the day that planning permission grants the development. It will be for the applicant or their agent to demonstrate lawful use by providing appropriate evidence such as Council Tax records or Business Rate documentation to prove this.

If you have any questions please contact the planning agreements officer (CIL) at cil.enquiries@southampton.gov.uk.