ZERO RATED CHARGING ZONES - Public forum - Planning Advisory Service (PAS)
ZERO RATED CHARGING ZONES
REBECCA STADDON, modified 8 Years ago.
ZERO RATED CHARGING ZONES
Advocate Posts: 103 Join Date: 05/09/13 Recent PostsPlease can I ask how different Councils administer their CIL in respect of zero-rated developments, either due to conversion in lawful use with no additioanl floorspace created or due to having a zero-rated CIL charging area?
Currently I follow the full CIL process for these applications but there is no penalty to the developer for not following the process as the surcharges are a % of the chargeable amount.
This would therefore appear to be making work for the developers and myself for no financial gain, which is not efficient.
Many Thanks
Beckie
Hi. For developments with a nil charge (as a result of the time test, or a zero rated use/zone), a liability notice (LN) is issued confirming a nil charge, and then the process stops. The LN demonstrates all liable cases have been assessed consistently and shows how the (nil) charge has been calculated - useful for audit and useful confirmation for the developer. Most of the regs refer to admin processes in respect of chargeable, not liable, developments. Reg31(1) refers to assuming liability on chargeable developments, and Reg67(1A(b)) says a commencement notice is not needed if the chargeable amount, calculated under Reg40, is zero.
The only exception is where there is a nil rate as a result of relief/exemption - and then those full administration requirements are followed.
Seems different Council's are administering CIL in different ways, all equally valid I suspect, vive la difference. Wonder how Helen might deal with the circumstance of 100% relief granted, and the development in a £0 rated zone? It might happen! Full administration requirements or process stops, you decide?
Rebecca Randall, modified 8 Years ago.
RE: ZERO RATED CHARGING ZONES
Enthusiast Posts: 60 Join Date: 06/05/14 Recent PostsIf it helps, we take the same approach as Helen.
Javaid Ashraf, modified 8 Years ago.
RE: ZERO RATED CHARGING ZONES
New Member Posts: 6 Join Date: 17/10/14 Recent PostsOk. This is a good point as no clear guidance in the CIL regulations on processes of treatment for NIL CIL BILLS as nicely termed by 106 rulez.
The way I see this is that if there is no CIL charge to pay due to the NIL rate or other reason treat it as not CIL liable, even though technically there may be a liability but no case progression due to a nil affect. Obviously if the rate was to increase at a later date, that may then become liable if new planning permission has been granted after the that change rate date, or where the floorspace has had an uplift via a S73 or variation of PP. Worth bearing this in mind just in case developer argues at a later date that they were told that this is not liable.
Now if the development is mixed use and includes a NIL element and chargaebla element, progress the case as per normal showing tyhe split between the chargaeble and non chargeable elements.
Reliefs and Exemptions are only relevant where there is a chargeable element. If not then it is effectively a double NIL effect which has the same result therefore no requirement to progress unless the rate changes at a later date and subsequent post application for planning permission or Variation as above scenario takes place. The nature of Releifs and Exemptions are to apply post charge.
Whether you issue a Liability Notice or Demand Notice for a NIL amount or do nothing further is a choice for yourselves depending on the circumstances and resources. Personally I would not progress further unless the developer, agent or owner insists on having something that shows that there is no charge or where the applicant is internal, such as housing, and they require for their records.
Hope this helps.
Regards
Javaid Ashraf
S106 Monitoring Officer
LB Lambeth