A Community Infrastructure Levy (CIL) is a charge that local authorities can set on a new development in order to raise funds for local services.
Howard Kennedy's developer client had planning permission for a mixed use development comprising 297 residential dwellings, office accommodation and a café. The planning permission was subject to a CIL liability of £5.4 million pounds which was payable in instalments. The "CIL Regulations" allow local authorities to apply surcharges if those payments are outstanding at 30 days, 6 months and 12 months after its due.
In this case the local authority did not follow the correct process for issuing the liability and demand notices for the collection of the surcharges. Jade Chalmers of Howard Kennedy with Christiaan Zwart of 39 Essex Chambers successfully appealed the imposition of the surcharges which resulted in the Inspector quashing the surcharges amounting to £497,922.60 and interest of £114,203.90.
This was a technically involved CIL appeal which required an in depth knowledge and understanding of the CIL Regulations and its very complex machinery. It is a reminder for local authorities to apply the CIL Regulations lawfully and strictly, and for developers to obtain expert advice from specialists who understand the detail and complexity of the CIL Regulations.