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CIL — Planning Act 2008 s.205-225

Community Infrastructure Levy (CIL) — Rates, Self-Build Exemption, MCIL London, Social Housing Relief and CIL vs Section 106

The Community Infrastructure Levy (CIL) is a mandatory non-negotiable planning levy charged by local planning authorities (LPAs) on most new development in England and Wales that creates net new Gross Internal Area (GIA) exceeding 100 sqm, or any new dwelling regardless of size. Key aspects: (1) CIL rates are set in each LPA's CIL Charging Schedule (£/sqm); rates range from £0 to £500+/sqm; (2) MCIL (Mayoral CIL — London): GLA charges £25/sqm for residential development (£80/sqm in Central Activity Zone and Isle of Dogs) and £60/sqm for offices/hotels/retail on top of LPA CIL; (3) self-build exemption: single dwelling for applicant's own main residence — claim MUST be filed before development commences; 3-year occupation requirement; clawback (full CIL + 20% surcharge) if sold within 3 years; (4) social housing relief (Reg 49 CIL Regs): affordable housing managed by a registered provider or subject to 250-year s.106 obligations relieved from CIL; (5) CIL vs s.106: CIL is mandatory, non-negotiable and pooled for general infrastructure; s.106 is negotiated for site-specific obligations; both can apply; (6) surcharges for non-compliance: 20% for failure to submit Commencement Notice before starting development; 5-15-20% for late payment.

14 min readUpdated 7 June 2026Last reviewed: 17 May 2026cilcommunity-infrastructure-levyplanning-levyself-build-exemption

CIL rates, what is chargeable, MCIL and the net GIA calculation

CIL is charged on development creating net new GIA exceeding 100 sqm (or any new dwelling regardless of size) at the LPA's Charging Schedule rate. Net GIA = gross new GIA minus existing lawful GIA of buildings being demolished or converted.

  • LPA sets CIL Charging Schedule rate (£/sqm): differentiated by development type and zone; ranges from £0 to £500+/sqm
  • MCIL 2 (London — GLA, from 1 April 2019): residential £25/sqm (£80/sqm in CAZ and Isle of Dogs); offices/hotels/retail £60/sqm — charged in addition to LPA CIL
  • Net GIA: gross new floorspace minus existing lawful GIA of demolished/converted buildings — commercial conversion to residential may significantly reduce CIL liability

Self-build exemption, social housing relief, CIL demand notice, surcharges and enforcement

The self-build exemption is the most important relief for individual owner-builders — but the claim must be filed before a single spade goes in the ground. Social housing relief requires the housing to be managed by a registered provider or subject to a 250-year s.106 obligation.

  • Self-build exemption: file claim before commencement — filing after commencement permanently loses the exemption; 3-year main residence occupation; clawback full CIL + 20% surcharge if sold within 3 years
  • Social housing relief (Reg 49 CIL Regs): affordable rent, social rent, shared ownership — RP-managed or 250-year s.106 obligation required
  • CIL Demand Notice served at commencement; instalment policy (many LPAs allow 50/50 split at commencement and practical completion)
  • Surcharges: 20% for failure to submit Commencement Notice before starting; 5% surcharge after 30 days late payment; 15% after 60 days; 20% after 90 days; legal charge on land for unpaid CIL

CIL vs Section 106 planning obligations

CIL and s.106 can both apply to the same development — they serve different purposes.

  • CIL: mandatory, non-negotiable, rate-based; pooled for general infrastructure across the LPA area (highways; schools; parks; libraries — set out in Infrastructure Funding Statement)
  • Section 106: negotiated planning conditions; site-specific affordable housing; transport; ecological mitigation; education; employment skills — tied to the specific site
  • Affordable housing obligations must be secured via s.106, not CIL — LPA cannot use CIL funds for affordable housing

Frequently asked questions

What is the Community Infrastructure Levy and who pays it?+

CIL (Planning Act 2008) is a mandatory non-negotiable planning levy charged by LPAs on development creating net new GIA exceeding 100 sqm, or any new dwelling. The developer (or person who has assumed CIL liability) pays it at the LPA's Charging Schedule rate (£/sqm). Rates range from £0 to £500+/sqm. MCIL in London adds £25/sqm residential (£80 CAZ/IoD) or £60/sqm offices/retail on top of the LPA rate.

How does the self-build CIL exemption work?+

A single dwelling built for the applicant's own only or main primary residence is exempt from CIL. The exemption claim must be filed with the LPA BEFORE development commences — filing after commencement permanently loses the exemption. The applicant must then occupy the property as their only or main residence for 3 years. If sold within 3 years, the full CIL (plus 20% surcharge) is clawed back. The exemption does not apply to BTL investment properties.

What is the difference between CIL and Section 106?+

CIL is mandatory, non-negotiable and applied at the LPA's Charging Schedule rate — the rate cannot be negotiated. CIL is pooled for general infrastructure across the LPA. Section 106 obligations are negotiated planning conditions for site-specific affordable housing, transport, ecological mitigation, and other contributions. Both can apply to the same development. The LPA cannot use CIL to fund items already secured by s.106.

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Section 106 Agreements (TCPA 1990 s.106) · Condition on Planning Permission · Affordable Housing (20-40%; On-Site or In-Lieu) · CIL (Fixed Per-sqm Levy; Cannot Duplicate with s.106) · Three-Test Rule (Necessary; Related; Proportionate) · Viability Assessment (Residual Land Value; NPPF Para 57) · Binds Successors (Local Land Charge) · Modification/Discharge: s.106A After 5 Years · Scotland: s.75 Agreements
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