Community Infrastructure Levy – Consultation Response

The government have now released their response to the Community Infrastructure Levy (CIL) regulations (25th October 2013). The key changes include:

  • The S106 pooling limitation has been moved to April 2015.
  • Payment in kind has been introduced.
  • The vacancy test has been altered.
  • People building or extending their own homes are exempted from CIL.

The changes will save self-builders thousands of pounds from the cost of building their ‘grand design’ by ensuring they are exempt from a levy charge paid for new buildings over a certain size. The government is committed to helping more people achieve their aspirations of owning a home and wants to help boost housing supply by making self-build housing a mainstream option. The relief from paying the Community Infrastructure Levy would cover homes built or commissioned by individuals, families or groups of individuals for their own use and that will be owner-occupied.

Changes soon to be implemented will provide more transparency and make the levy a more efficient way for development to contribute to the essential infrastructure needed to support development. Levy money can be used to fund infrastructure that local people want in their area, such as traffic or park improvements or better community facilities. The levy already provides developers and landowners with more certainty ‘up front’ of how much money they will have to contribute towards infrastructure.

The government will bring in changes following a recent consultation that will:

  • Ensure people building or extending their own homes are exempt from the levy;
  • Make sure more buildings are brought back into use without incurring a levy charge by changing the vacancy test;
  • Extend by 1 year the date when councils can no longer use pooled Section 106 planning obligations for infrastructure that is not funded by the levy;
  • Allow councils to accept levy payments in kind from developers providing infrastructure instead of cash or land to ensure timely delivery of infrastructure.

The Community Infrastructure Levy has the potential to raise an estimated £1 billion a year of funding by 2016 to support growth locally. It gives councils more choice and flexibility in how they fund the infrastructure that their communities want and need.

The full response document (including details of timing for laying in Parliament) can be found at: