Draft Community Infrastructure Levy (Coronavirus) (Amendment) (England) Regulations 2020

Councils will be able to defer community infrastructure levy (CIL) payments from smaller developers for up to six months but there will be no right of appeal for applicants if authorities refuse their request, according to new draft regulations and guidance.

This instrument inserts new regulations 72A, 72B and 72C into the CIL Regulations, which make
provision to enable a person with an annual turnover not exceeding £45 million, who is required to
make a CIL payment during the “material period”, (see new regulation 72A(10)), to make a request
to a collecting authority (“CA”) to (i) defer that CIL payment if they are experiencing financial
difficultiesfor reasons connected to the effects of coronavirus(“a deferral request”); and (ii) to credit
interest accrued on late CIL payments (“an interest request”).

In addition, these provisions allow for interest and surcharges to be disapplied whilst a CA is
considering a deferral request.

New regulation 72A(1) provides that a deferral request may be made to a CA by a person (P)
described in that paragraph. Such requests must be made no more than 14 days before, or on or as
soon as practicable after, the day payment of the CIL amount is due. Regulation 72A(3) and (4)
provide that a deferral request must be decided by a CA as soon as practicable and in any event
within 40 days of receipt of the request; and if the request is granted, because the CA considers that
is appropriate, the CIL payment may be deferred for no more than 6 months beginning with the date
on which the request is received. New regulation 72A(5) requires the CA to serve a revised demand
notice if a request to defer is granted and in that case the CIL amount must be paid in accordance
with that revised demand notice. In relation to CIL charged by the Mayor, a deferral request may
only be granted if the Mayor is of the view that that it is appropriate for any Mayoral CIL payment
to be deferred. If a CA refuses to grant a deferral request, the CIL must be paid in accordance with i)
the demand notice which was served before that deferral request was made or ii) any other revised
demand notice that may be served under paragraph 69, after the request is made.

New regulation 72B(1) provides that no surcharge under regulation 85, or late payment interest
under regulation 87, applies in respect of a CIL amount whilst a CA is considering a deferral request.
Interest accrued during the period from 21st March 2020 until the time when the CA starts to consider
a deferral request, may be credited if the CA considers that is appropriate and a request is made
under new regulation 72B(2). In relation to CIL charged by the Mayor, an interest request may only
be granted if the Mayor is of the view that that it is appropriate for any Mayoral CIL payment to
be deferred and for any late payment interest which has accrued on Mayoral CIL to be the subject
of an interest request.

New regulation 72C(1) requires a person who makes a deferral request or an interest request to
provide the CA with any relevant information that the CA may require for the purposes of carrying
out the authority’s functions under new regulations 72A and 72B, and for assisting the CA in that
regard. A CA may refuse to grant a deferral request or an interest request if the authority is not
provided with information that it requires in order to decide such a request.

The regulations must be approved by Parliament before they can come into force.

Guidance has been issued alongside the regulations.

Author: MHCLG

Date: July 2020 Date of draft regulations

This item updates DCP section 4.62


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