“Under The Community Infrastructure Levy Regulations 2010 (the CIL Regulations), Local Planning Authorities (LPAs) can choose to charge CIL on “chargeable development” which, under the Regulations, is defined as development for which planning permission is granted. Where LPAs charge CIL, they have responsibility as the “collecting authority” for calculating and collecting it. Rates of CIL in some LPA areas are significant and can amount to hundreds of pounds per square metre. CIL is notoriously complicated, and we have had a recent case that illustrates some of the issues that can arise”, says Mark Sanders of Acorn Rural Property Consultants.
“The LPA granted planning consent for a new dwelling, part of which was retrospective and part of which had not yet been built. One of the available offsets for CIL is when other buildings that have been recently in use are removed and the floor area of the buildings that are being removed can be offset against the new floor area that is being created. We had included the demolition of another building in the planning application so that the offset was available”, explains Sanders.
“However, the LPA argued that, because the existing part of the new dwelling was retrospective, it had already been completed so that, under the Regulations, the offset was not available. It assessed the CIL liability at approximately £38,000. We appealed the assessment, on the grounds that the planning consent included additional floor area that had not been built so the chargeable development was not complete. A valuer was appointed by the Valuation Office Agency (VOA) to determine the appeal. The VOA agreed with the LPA and dismissed the appeal”, continues Sanders.
“We were instructed to apply to the court for a Judicial Review of the VOA’s decision and, after obtaining a separate opinion from their barrister, lawyers acting for the VOA agreed with us and asked the court to quash the appeal decision. It is too soon for us to be able to report whether the LPA now also agrees, or whether we will have to go through a second appeal process”, concludes Sanders.
For further information please contact Acorn Rural Property Consultants on 01884 212380