self builds and absconded debtors - Public forum - Planning Advisory Service (PAS)
self builds and absconded debtors
Rebecca Martin, modified 6 Years ago.
self builds and absconded debtors
Enthusiast Posts: 77 Join Date: 06/09/13 Recent PostsHi
Just wondered if a Cil liable self builder absconds and cannot be found does the CIL liabilty fall to the new owner? So really I am asking is the charge on the property or liable person?
Also what happens if the CIL liable person is forced to sell their property because they are behind in mortgage payments or other financial issues? How does the 3 year rule stand on this?
And finally is CIL a tax because our revenues and Audit team are saying it isnt, and altough the word levy appears everywhere I find nothing that states it is a tax.
Simon Anstey, modified 6 Years ago.
RE: self builds and absconded debtors
Enthusiast Posts: 74 Join Date: 17/07/15 Recent PostsIn answer to your queries in order:
1. (from Planning Practice Guidance website)
'Who is liable to pay?
Landowners are ultimately liable for the levy, but anyone involved in a development may take on the liability to pay. In order to benefit from payment windows and instalments, someone must assume liability in this way. Where no one has assumed liability to pay the levy, the liability will automatically default to the landowners and payment becomes due as soon as development commences (see regulation 7, and section 56(4) of the Town and Country Planning Act 1990, for the definition of ‘commencement of development’). Liability to pay the levy can also default to the landowners where the collecting authority has been unable to recover the levy from the party that assumed liability for the levy, despite making all reasonable efforts.
For further information see ‘How does someone assume liability for the levy?’.'
The purchaser of the property should have been aware of the outstanding CIL liability from their land search so could have no complaints about being held liable.
2. The owner is liable for payment of CIL if they do not occupy the property as their principal home for 3 years following completion. They would lose any self-build exemption they have claimed but could allow for this in the sale price of the property.
3. In effect CIL is a tax on development but officially may not be a tax. Here is the definition from the Planning Practice Guidance website:
'The Community Infrastructure Levy is a planning charge, introduced by the Planning Act 2008 as a tool for local authorities in England and Wales to help deliver infrastructure to support the development of their area. It came into force on 6 April 2010 through the Community Infrastructure Levy Regulations 2010. Development may be liable for a charge under the Community Infrastructure Levy (CIL), if your local planning authority has chosen to set a charge in its area. '
Rebecca Martin, modified 6 Years ago.
RE: self builds and absconded debtors
Enthusiast Posts: 77 Join Date: 06/09/13 Recent PostsThank you for taking the time to respond. I will check the portal out on how does someone assume liabilty.
rebecca