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Community Infrastructure Levy

Consequences of non-payment or not following the correct procedure

Paying CIL in the form of land

Local land charge

Rights of appeal

Notes relating to self-build exemption (disqualifying events)

Consequences of non-payment or not following the correct procedure

Surcharge for failing to assume liability before commencement

Failure to assume liability before the commencement of development may result in the Council imposing a surcharge of £50 per landowner subsequently discovered. This surcharge ensures that the costs of establishing the identities of landowners are borne by the liable parties.

Surcharge where apportionment is necessary

Further, where the Council has to apportion liability between one or more owners of the land, they may also impose a surcharge of £500 per owner. This is to ensure the costs of this apportionment are borne by the owners in question. Both these surcharges are in addition to the loss of payment rights that result from failing to assume liability before the commencement of development.

What happens if a valid commencement notice is not submitted before development commences?

Failure to submit a valid commencement notice before development commences may result in the Council imposing a surcharge of 20% of the CIL amount due, up to a maximum of £2,500.

Late payment interest

Failure to pay CIL on time will result in the imposition of late payment interest by the Council at 2.5 percentage points above the Bank of England base rate.

Late payment surcharges

Continued failure to pay CIL may result in the Council imposing one or more late payment surcharges in the following manner:

The CIL Stop Notice

Sometimes the Council may believe that interest and late payment surcharges will be ineffective in securing payment of the overdue CIL. In such circumstances, the Council may decide to serve a CIL Stop Notice prohibiting development from continuing until payment is made. Continuing to develop in the presence of such a notice is a criminal offence, punishable by potentially unlimited fines.

Before serving a CIL Stop Notice however, the Council will first issue a warning to the person liable to pay the amount, the land's owners, occupiers and all those who the Council believe will be affected by the notice. It will also post a warning on the site itself. This warning will state that continued non-payment may result in a CIL Stop Notice being issued. It will also set out the amount overdue and the number of days after which a CIL Stop Notice may be served if payment continues not to be made. If payment is not made by the end of this period, the Council may serve a Stop Notice which will prohibit development with immediate effect immediately until payment of the outstanding amount is made.

Further information

Please see the guidance published by the Department for Communities and Local Government (DCLG) for more information: View further information on collecting the levy External Hyperlink.

Paying CIL in the form of land

In certain circumstances some, or the entire amount, of CIL due may be paid by transferring land to the Council or another beneficiary agreed with the Council.

Please see the guidance on "payment in kind" published by the Department for Communities and Local Government (DCLG) for more information: View further information on payment in kind External Hyperlink.

Local Land Charge

This CIL liability has been registered as a local land charge against the land affected by the planning permission in this notice. This charge will be cancelled on full payment of this liability.

If you have been granted exemption the amount of relief granted will be cancelled seven years after commencement of development, or where a disqualifying event has occurred, on full payment of the amounts due.

Rights of appeal

In cases where the Council has deemed development to have commenced

You may appeal against any decision by the CIL collection authority to deem that development has commenced by doing so to the Planning Inspectorate within 28 days of receiving notice of such a decision by the CIL collection authority. View further details of CIL appeals External Hyperlink.

In cases where a surcharge has been imposed

You may appeal against this surcharge to the Planning Inspectorate within 28 days of the date of this notice. View further details of CIL appeals External Hyperlink:

In cases where an apportionment has been carried out and appended to the notice

You may appeal against any decision by the CIL collection authority to apportion a CIL liability by doing so to the Valuations Office Agency within 28 days of receiving notice of this apportionment. View further details of CIL appeals External Hyperlink.

Notes relating to self-build exemption (disqualifying events)

For whole new dwellings

A self build exemption is revoked if a disqualifying event occurs during the 3 year occupancy period.

A disqualifying event for self build exemption is:

If a disqualifying event occurs, the claimant of the self build exemption must notify the charging authority in writing within 14 days. Where this is not done, a surcharge equal to 20% of the chargeable amount or £2,500, whichever is the lesser, may be applied to the claimant in addition to the chargeable levy amount. A copy of the notification must be sent to all owners of material interests in the relevant land. When it receives this notification, the charging authority must copy it to the collecting authority, if this is not the charging authority.

The only exception is where the claimant of the exemption fails to comply with the evidence requirements on completion. In such cases, the collecting authority must give the claimant at least 28 days to submit the necessary form and evidence before taking any further action.

Please see the guidance published by the Department for Communities and Local Government (DCLG) for more information: View further information on self-build exemption External Hyperlink

For residential annexes

Someone who is granted an exemption for a residential annex will cease to be eligible if a commencement notice is not submitted to the collecting authority at least one day before work begins on site.

A residential annex ceases to qualify for a self build exemption if any of the following disqualifying events occur within 3 years of completion:

Completion for the purposes of this exemption is defined as the issuing of a compliance certificate for the annex under either regulation 17 of the Building Regulations 2010 or section 51 of the Building Act 1984.

If there is a disqualifying event, the person benefitting from the exemption must notify the charging authority in writing within 14 days. The exemption will be withdrawn and that person is then liable for the levy charge specified by the charging authority that would have been payable at the time when the exemption was first claimed (or the amount of relief granted, if lower).

Please see the guidance published by the Department for Communities and Local Government (DCLG) for more information: View further information on self-build exemption External Hyperlink




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Fareham Borough Council, Civic Offices, Civic Way, Hampshire, PO16 7AZ
Tel: +44 (0) 1329 236100 | Mobile Text/Photo: 07860 098627
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