Re: The point at which the Liability Notice is issued. - Public forum - Planning Advisory Service (PAS)
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Started - July 2012
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Last activity - May
Re: The point at which the Liability Notice is issued.
Why do I find problems with every area of the CIL Regs that I look at? Up to now I (and others I think) have been thinking in terms of the Liability Notices being issued with, or shortly after, the issuing of the "planning permission". Reg.65 however says that a LN must be issued "as soon as practicable after the day on which a planning permission first permits development". Reg.8 defines what is meant by " the day on which a planning permission first permits development". In the case of an outline permission it is defined as being the date on which the last reserved matter is approved. In the case of other applications which are subject to a condition(s) requiring further approval(s) to be obtained before development commences, it is the day on which final approval is given. The issuing of the LN is therefore likely, in the vast majority of cases, to take place sometime, possibly years, after the "planning permission" has been issued. The PAS/Redbridge CIL Manual, I think, oversimplifies this point. The formula in Reg. 40 for calculating the chargeable amount however uses the term "planning permission" for "Ip" which is the year that the indexation runs up to rather than the year in which "planning permission first permits development". How is that logical? Any comments from anyone?
I think this is pretty much correct Tony. I haven't dealt with a large development with reserved matters yet but in simple terms if there is pre-commencement conditions such as car free scheme or the like, planning permission first permits the development when these are discharged. I believe CLG and GLA are aware of the difficulities that this is causing in London and the resources required in monitoring the discharging of pre-commencement conditions and might be trying to do something about it. The pragmatic approach for simplier applications is to issue the liability notice at permission because it is not a demand for payment and if in the minority cases where things change to such an extent that the CIL amount changes between permission and final pre-commencement conditions discharging, a new liability notice can be issued and the previous cancelled. The difficulity is that a liability notice is registered as a part 1 land charge
The monitoring issues is one that many are wrestiling with and the importance this has to developers discharging their conditions. A good monitoring system and IT system are essential. Also, I think it is a good idea to issue a draft liability notice or something that gives the applicant/owner an idea of the magnitude of the payment. In terms of the formula and indexation that is more related to 'inflation' between when the CIL was set and the time of payment - so that bit is quite logical.
Gillian, I think you have misunderstood the point that I was making in my original post re the indexation. The effect of the Regs. is that the indexation "clock" stops running when the planning permission is granted and not when "planning permission first permits development". The two can potentially be years apart as, as we will all know, reserved matters approvals can take a long time!
Simon Pickstone, modified 11 Years ago.
Re: The point at which the Liability Notice is issued.
Advocate Posts: 104 Join Date: 22/04/13 Recent Posts
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I would suggest the LN is issued post planing permission and post-notice of chargeable development? If the CIL liable person/s then decide to claim exemption or relief etc. a new/updated LN could then be issued? Presumably this would also be the case if a significant amount of time lapsed in terms of 'commencement' and the CIL liability had changed due to inflation or revised charge rates etc? Perhaps this requires an explanatory clause at the time the original LN is issued to cover any potential changes in the amount due? Perhaps some 'triggers' for re-issue of the LN relating to inflation and revisions to the charging schedule etc?