Paying Community Infrastructure Levy in the form of infrastructure

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

  • the council as charging authority must agree to the infrastructure payment
  • the infrastructure provided to the council through an infrastructure payment will be used to support the development of its area and must be in accordance with the Council's latest IFS: Infrastructure List Statement
  • the person providing the infrastructure to the council as payment must have assumed liability to pay CIL with the appropriate Assumption of Liability form, before an agreement can considered
  • the person providing the infrastructure to the council is required to demonstrate that they have, or are likely to have, sufficient control over the land on which the infrastructure is to be constructed to enable them to provide the infrastructure; and that they have obtained, or are likely to obtain, any relevant statutory authorisations that are necessary to enable the infrastructure to be constructed
  • development on the site must not have commenced before a written agreement to make an infrastructure payment in leiu of cash in regard to the CIL liability with the council has been made
  • the value of any infrastructure offered by way of payment has to be determined by a suitably qualified independent person, with any costs associated with this assessment paid for by the liable party
  • the valuation of infrastructure must be based on the actual construction cost of the proposed infrastructure and fees relating to the design of the infrastructure. These costs and fees must be realistic and agreed with the council
  • the agreement must state the value of the infrastructure; state the date by which the infrastructure is to be provided and provide for payment to the council of the CIL cash amount and interest, in money if the infrastructure is not provided by that date, or in accordance with an agreed extension to that date
  • the agreement must ensure that by the time the CIL cash amount would be payable if it was being paid in money, an amount equal to the CIL amount must either have been used to provide the infrastructure or be subject to the arrangement in Regulation 73A9(b)
  • in accordance with Regulation 75(2) (b) the council is not required to repay overpayment where it is a result of an infrastructure payment.

In the event a liable party commences development having failed to submit a Commencement Notice to the council, any agreement regarding an infrastructure payment for that liable development will be void and the infrastructure will not be accepted as payment. Instead the full value of the CIL liability will be due immediately in money.

Where an amount payable 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.