Mezzanine Floors - Public forum - Planning Advisory Service (PAS)
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Started - July 2012
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Mezzanine Floors
There seems to be a consensus out there that mezzanine floors are not liable to CIL. For example, on the Planning Portal website at the following link there is a statement under the 'What development is subject to a charge?' heading to the effect that 'the gross floorspace arising from development to the interior of an existing building may be disregarded from the calculation of the CIL liability': http://www.planningportal.gov.uk/planning/applications/howtoapply/whattosubmit/cil In the Planning Portal ‘Planning Application Additional Information Requirement Guidance’ that complements the ‘Additional Information Form’ that developers must submit with their planning application to enable the charging authority to determine the CIL liability it states (see the last paragraph of the document at the following link) that “Mezzanine floors are not liable for CIL. The floorspace created by the addition of a mezzanine floor will be deducted from the net additional gross internal floorspace.” http://www.planningportal.gov.uk/uploads/1app/cil_guidance.pdf PAS state that ‘Retail mezzanines are exempt from the charge’ on their CIL FAQs webpage at the following link: http://www.pas.gov.uk/pas/core/page.do?pageId=2115326 Does everyone accept that this is the effect of the regulations? The 2011 Amendment Regulations added a new clause (12) to Regulation 40 such that “In this regulation “new build” means that part of the chargeable development which will comprise new buildings and enlargements to existing buildings.” Assumptions seem to have been made that mezzanines are not ‘new buildings’ or ‘enlargements to existing buildings’ because they do not expand the physical size / area of the building? But (sorry to start a sentence with a ‘but’, I know that’s a ‘no-no’), could mezzanines be considered to be ‘enlargements to existing buildings’ insofar as they enlarge the amount of those buildings’ floor area? Mezzanines don’t add to the area of existing buildings in terms of the volume of space within the building, but they do enlarge the floor area? The philosophy of CIL is to charge for the creation of floorspace that places increased demands on infrastructure. Arguably mezzanine floors will do that to the same degree as non-mezzanine developments that enlarge the floor area of existing buildings? S209(1)(b) of the Planning Act 2008 would seem to allow for CIL to be applied to mezzanines. Have I missed something obvious in the regulations and amendment regulations that contradicts that? Any thoughts welcome!
My reading of the CIL Regs does not suggest to me that mezzanine floors escape liability for CIL. The 2011 Regulations amended Regulation 6 (meaning of "development") and as amended it's not stated that mezzanine floors are not to be treated as development, so I conclude from this that they should be treated as development. It should be borne in mind that mezzanine floors can be provided in both new and existing buildings and I can't think of a reason why they shouldn't be included in the gross internal area of the former, so why should they escape being included in the gross internal area of the latter? In my career as a chartered quantity surveyor I have measured the gross internal area of many buildings over many years, and I don't think I've ever had cause not to include the area of a mezzanine floor in either new build or refurbishment projects so, without any specific Regulation to the contrary, why should I start now? I would suggest that floor area is the defacto criteria by which buildings are quantified by all the built environment professions, so in respect of 'enlargement to existing buildings', if you add a mezzanine floor within an existing building I can't see that you're not enlarging the building. It's a vertical extension of the building within the existing fabric which doesn't increase the building's overall height or depth. You can bet your life that commercial agents wouldn't ignore the area of mezzanine floors when valuing property so, without any specific requirement within the CIL Regs to do so, why should we?
Simon Pickstone, modified 11 Years ago.
Re: Mezzanine Floors
Advocate Posts: 104 Join Date: 22/04/13 Recent Posts
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You chaps might want to see the latest 'feeding back to DCLG post' if you haven't already for some further discussion on this topic? Regards, Simon
Planning Portal needs to rethink this one. S206 of the Planning Act allows for CIL to be charged in respect of the "development" of land. S209 says "development" means anything done to create a new building or anything done to or in respect of an existing building, which of course could include a mezzanine floor. S222 provides for regulations to allow for exemptions and discretion in way the charge operates. The regulations themselves do provide for a whole raft of exemptions and relief measures, but mezzanine floors are not among them. Indeed, "mezzanine" is not mentioned anywhere in the relevant legislation. The issue is not whether the floor is a "mezzanine", but whether it is "development" requiring planning permission (express or general) under the T&CPA. S55(2)(a) of that Act says that it isn't development if it affects only the interior of the building or doesn't materially affect the external appearance of the building. In that case the mezzanine wouldn't attract CIL. However, once you start adding new windows, doors, fire escapes etc to serve the new floor, it does materially affect the external appearance of the building and does attract CIL. Put another way, where there are no external alterations involved, the mezzanine isn't development requiring planning permission (general or express) and there is no mechanism to apply CIL because there is no planning permission Decision Notice or Notice of Chargeable Development to trigger a Liability Notice. If the new floor does materially affect the external appearance of the building, then it does require planning permission and is potentially liable to CIL, whether you choose to call it a "mezzanine" or not.
Within Shropshire, we sought legal advice on this issue, as a number of applications were being received that incorporated the creation of a 1st storey within an existing building. The advice we received was very similar to the view expressed by Murray, specifically where development affects only the interior of a building or doesn't materially affect the external appearance of a building, it is not liable for CIL (in accordance with Regaulation 4 of the Amendment CIL Regulations 2011). This would include a development that involves the insertion of velux style windows and other alterations that are not considered to materially affect the external appearance of the building, however it does not include a development that incorporates a dormer sytle window or alterations that are considered to materially affect the external appearance of the building. A number of Planning Applications are submitted that include these proposals, as they are wrapped in a Change of Use or wider redevelopment proposal.