Paying Community Infrastructure Levy in the form of land

In certain circumstances you may be able to pay a part or the entire CIL amount in the form of land. This depends on the following conditions:

  • the council as charging authority must agree either to acquire the land or to nominate another person (with their agreement) to acquire the land
  • the council must aim to ensure the acquired land is used for a relevant purpose to provide or facilitate the provision of infrastructure which is identified in the council's latest IFS: Infrastructure List Statement to support the development of its area
  • the person who wishes the council or nominated person to acquire the land must have assumed liability to pay CIL beforehand
  • the land to be acquired must have been independently valued by a suitably qualified person agreed by the council. The valuation must be the price that the land might reasonably be expected to obtain if sold on the open market on the day it is valued. The price is not to be assumed to be reduced on the ground that the whole of the acquired land is to be placed on the open market at the same time
  • development on the site must not have commenced before a written agreement to make a land payment in leiu of cash in regard to the CIL liability with the council has been made. The agreement must state the value of the land to be transferred
  • in accordance with Regulation 75(2)(b) the council is not required to repay overpayment where it is a result of a land payment.

By agreement with the council land can be transferred by instalments as long as it is in line with the payment proportions and due dates laid out in the councils CIL Instalment Policy.

In the event a liable party commences development having failed to submit a Commencement Notice to the council, any agreement regarding a land payment for that liable development will be void and the land will not be accepted as payment. Instead the full value of the CIL liability will be due immediately in money.
 
Where a land payment is not received in full on or before the day on which it is due, the unpaid balance of the CIL payment becomes payable in full immediately in money.

Any outstanding CIL amounts left after the transfer of land in the form of money will be paid in line with the payment due dates laid out in the Demand Notice.