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ARTICLE · 15 NOVEMBER 2012

Community Infrastructure Levy - A Tax On Development

CIL is a new levy that local authorities are empowered, but not required, to charge on new developments in their area. CIL is, therefore, a tax on development.

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CIL is a new levy that local authorities are empowered, but not required, to charge on new developments in their area. CIL is, therefore, a tax on development.

Money raised by the community infrastructure levy (CIL) can be used to support development by funding infrastructure that the council, local community and neighbourhoods require. Currently, only six authorities are charging with three more to follow shortly. However, the expectation is that 50% of local authorities will adopt the CIL by April 2014. That said, many have yet to start any detailed work on how they will be dealing with the levy. London, on the other hand, is well ahead of the curve.

Certainly one criticism of CIL is that the money raised goes into a general pot which can be spent on projects unrelated to the development concerned. CIL is, however, intended to be a fairer approach to infrastructure funding in contrast to section 106 agreements, which are perceived to be negotiable and arbitrary,

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