Community Infrastructure Levy (CIL) Preliminary Draft Charging Schedule and Regulation 123 List

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Appendix 1

Calculating the charge

The formal calculation methodology is provided in Regulation 40 and Part 5 of the CIL Regulations 2010, as amended.

  • The collecting authority must calculate the amount of CIL payable (“chargeable amount”) in respect of a chargeable development.

  • The chargeable amount is an amount equal to the aggregate of the amounts of CIL chargeable at each of the relevant rates.

  • But where that amount is less than £50 the chargeable amount is deemed to be zero.

  • The relevant rates are the rates, taken from the relevant charging schedules, at which CIL is chargeable in respect of the chargeable development.

The amount of CIL chargeable at a given relevant rate (R) must be calculated by applying the following formula:

R x A x lp

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Ic

  • A = the deemed net area chargeable at rate R;

  • Ip = the index figure for the year in which planning permission was granted; and

  • Ic = the index figure for the year in which the charging schedule containing rate R took effect.

The index figure for a given year is:

  1. the figure for 1st November for the preceding year in the national All-in Tender Price Index published from time to time by the Building Cost Information Service of the Royal Institution of Chartered Surveyors or

  2. if the All-in Tender Price Index ceases to be published, the figure for 1st November for the preceding year in the retail prices index.

The value of A must be calculated by applying the following formula:

Net Chargeable Area (A) =

GR – KR – {GR x E}

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G

  • G = the gross internal area of the chargeable development;

  • GR = the gross internal area of the part of the chargeable development chargeable at rate R;

KR = the aggregate of the gross internal areas of the following:

  1. retained parts of in-use buildings, and

  2. for other relevant buildings, retained parts where the intended use following completion of the chargeable development is a use that is able to be carried on lawfully and permanently without further planning permission in that part on the day before planning permission first permits the chargeable development;

E = the aggregate of the following:

  1. the gross internal areas of parts of in-use buildings that are to be demolished before completion of the chargeable development, and

  2. for the second and subsequent phases of a phased planning permission, the value Ex , unless Ex is negative; and

  3. provided that no part of any building may be taken into account under both of paragraphs (a) and (b) above

The value Ex must be calculated by applying the following formula:

EP – (GP – KPR)

  • EP = the value of E for the previously commenced phase of the planning permission;

  • GP = the value of G for the previously commenced phase of the planning permission; and

  • KPR = the total of the values of KR for the previously commenced phase of the planning permission.

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