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CIL and Change of Use

Former Member, Addaswyd 12 Years yn ôl.

CIL and Change of Use

Hi all, There are two questions on the CIL FAQs on the PAS website that are causing me some confusion. I was always under the impression that change of use development was not liable to pay CIL. However, the answers on the FAQ copied below would lead me to believe that change of use could be liable if a building has been vacant for 12 months and the change of use is to residential (where the 100sqm threshold does not apply). This might be common in the case of barn conversions to residential. Do people agree with this interpretation. If this interpretation is correct, does that mean that change of use development is subject to the restrictions on planning obligations imposed by Regulation 123? Can I collect CIL for a barn conversion to a house as it is the creation of a new dwelling? No. The levy is charged in pounds per square metre on the floorspace of any given development. But floorspace resulting from change of use development must be disregarded where the building has been in continuous lawful use for at least six months in the twelve months prior to the development being permitted. How long does a building have to be vacant before the floorspace can no longer be offset against CIL liabilities triggered by new development, and is it different to abandonment? Floorspace subject to demolition or resulting from change of use can only be deducted where it has been in continuous lawful use for at least six months in the twelve months prior to the development being permitted.
Former Member, Addaswyd 12 Years yn ôl.

Re: CIL and Change of Use

A change of use is a chargeable development - but if you have lawful floorspace in use and you change its use with no increase in floor space ( extensions etc) there would be no charge. If the building has not been in a lawful use for at least 6 months in the last 12 months ( Reg 40 (10)) and you changed the use you would need to pay CIL. It is my interpretation that changes of use are CIL chargeable developments and therefore you would still have the to comply with the s 106 restrictions in Reg123. I would be interested in anyone elses opinion.
Phil Morris, Addaswyd 12 Years yn ôl.

Re: CIL and Change of Use

Enthusiast Postiadau: 40 Dyddiad Ymuno: 21/10/2011 Bostiadau diweddar
Note "a building is in use if a part of that building has been in continuous use....." So a key question will be what constitutes "a part". My understanding is that the restrictions under Reg 122 apply regardless of whether a development is liable for CIL. The issue for 123 is not whether the development is CIL liable, it is whether the infrastructure can be funded through S106. So a development that pays no CIL can still contribute via S106 provided that the restrictions of 122 are applied, and under 123, no pooling is taking place and the infrastructure funded by S106 is excluded from the list you must provide of CIL versus S106 funded infrastructure. Of course, the latter can be changed at any time, so it would appear that if you have a big conversion coming up you could exclude a piece of infrastructure that is neccessary for and relates to the development from your "123 list" and seek an appropriate S106 contribution.