CIL regulations set for significant shake-up

Ambitious changes will shortly be brought in to Community Infrastructure Levy (CIL) regulations under new government-led plans.


The decision to allow the opportunity for developers to provide infrastructure in exchange for a nominal discount on their overall CIL liability is one of the most contentious changes which are set to have a significant impact on the industry.


Liz Peace, chief executive of the British Property Federation, was delighted that the ministers involved showed a determination to collaborate on the core issues.


“We are delighted that ministers have listened to the concerns of the industry, and have decided to consult on the issues that are really causing trouble with the implementation of CIL,” she stated.


“The consultation addresses some issues that are causing serious headaches to many, particularly those with large urban regeneration schemes. Charging authorities must be encouraged to be realistic about the levels set,” she continued.


Change in tactics


The government made the decision towards the end of 2012 to take a detailed look at CIL legislation and address the areas where it required clarity and adjustment; these new changes are the result of that approach.


Aside from the controversial ‘payments-in-kind’ scheme, some of the other notable changes that those in the industry will have to get used to include:

  • A one-year extension to the deadline for councils to get their CIL charging schedules in place
  • A commitment that levy payments are also phased whenever planning permission is phased to ensure a strong pace of overall development
  • An extension of the consultation for the draft charging schedule from 4 weeks to 6 weeks in total


Should I call in LPA receivers?


Property can be a particularly complex subject to tackle when a company that suffers difficulties after a tough financial period.


The role of an lpa receiver is simply to recover any outstanding debt which is owed to a lender. The best way to do this generally involves seeking to secure an early sale in order to repay as much of the outstanding loan as possible.


Advice should be sought from licensed practitioners to assess the best course of action for any given situation.


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