CIL Enforcement and Surcharges

The application of surcharges are intended to ensure the effective enforcement of CIL where there is a delay within the collection process, or a breach of procedures.

Penalty and enforcement options

Failure to Assume Liability - £50 

If development has commenced and nobody has assumed liability to pay CIL by submitting CIL Form 2: Assumption of Liability in respect of the chargeable development, then a surcharge of £50 can be imposed on each person or party* liable to pay CIL.

Apportionment of Liability - £500 

Where the Council must apportion liability to pay CIL between each material interest in the relevant land, it can impose a surcharge of £500 per person / party to ensure the costs of this apportionment are accounted for by the liable parties*.

*Where no person or party has assumed liability, then liability is apportioned between each person / party with a material interest in the relevant land, as per Regulation 33.

Failure to Submit a Notice of Chargeable Development - £2,500

Where a CIL liable development does not require planning permission (such as a general consent under permitted development), the landowner is required to submit CIL Form 5 – Notice of Chargeable Development.

Failure to submit CIL Form 5 prior to commencement of development can result in the following surcharge:

20% of the chargeable amount; or £2,500, whichever is the lower amount.

Failure to Submit a Commencement Notice Prior to Commencement - £2,500

Where a chargeable development has commenced, but a valid commencement notice CIL Form 6 – Commencement Notice has not been received at least one day prior to the commencement date, then the following surcharge may be applied:

20% of the chargeable amount; or £2,500, whichever is the lower amount. 

Surcharge on Disqualifying Events - £2,500

Where the Council has not been informed of a disqualifying event within 14 days of the disqualifying event, the following surcharge may be applied:

20% of the chargeable amount; or £2,500, whichever is the lower amount.

Surcharge for Late Payment - £200 upwards

When a payment is not paid by the due date, the following surcharges may be applied;

1) If the full payment is not received within 30 days of the due date:

5% of the payment due; or £200, whichever is the greater amount.

2) If any part of the payment is not received within 6 months of the due date:

5% of the unpaid amount; or £200, whichever is the greater amount.

3) If any part of the payment is not received within 12 months of the due date:

5% of the unpaid amount; or £200, whichever is the greater amount.

Surcharge for Failure to Comply with an Information Notice - £1,000

Where a person (P) fails to comply with any requirement of an information notice within 14 calendar days of the date it is served, the following surcharge may be applied;

• 20% of the relevant amount; or £1,000, whichever is the lower amount.

• Relevant amount means the amount of CIL (P) is liable to pay in respect of the chargeable development.

Late Payment Interest

This is not to be confused with Late Payment Surcharges, which are detailed above.  This is a mandatory charge.

Where a payment is not received by the Council by the date it is due, the person (P) liable to pay that amount MUST pay late payment interest as follows;

Late Payment Interest must be calculated:

• for the period starting on the day after the day payment was due; and
• ending on the day the unpaid amount is received; and
• at an annual rate of 2.5% above the Bank of England base rate.

Late Payment Interest is calculated on all outstanding amounts, including the value of any surcharges that may have been applied.  Late Payment Interest is not payable on Late Payment Interest. 

Enforcement - Recovery of CIL

The following sections are other mechanisms the CIL Regulations set out to enable collecting authorities to recover charges that are due. 

These mechanisms can be used alongside CIL Stop Notices, but can also be used separately – for example, where development has finished.  Part 9 of the regulations details all enforcement mechanisms available to the council.  If any of these mechanisms are used to recover any unpaid amounts, then we must first issue a Liability Reminder to the relevant person(s).

At the end of seven days from the date of the Liability Reminder, the council may then seek to employ the following mechanisms.

Liability Orders

We may apply to the Magistrates Court for a liability order against the relevant person(s).  This is done by making a complaint to the justice of the peace and requesting that a Court summons is sent to the person(s) asking them to attend Court to explain why they have not paid the relevant amount.

This cannot be applied for more than 6 years after the unpaid amount became due.

In cases where the amount is paid after the order has been applied for (but before it is made), the Court must, if requested by the authority, make the order in respect of the reasonable costs of the application.

Where a Liability Order has been made, payment may be enforced by using the procedure detailed in Schedule 12 of the Tribunals, Courts and Enforcement Act 2007.

Committal to Prison

Where we are unable to recover the amounts due, we may apply to The Magistrates’ Court to commit the debtor to prison for up to three months. 

This can only be applied for when the debtor is an individual.

Enforcement - Supply of False Information

It is an offence for a person, knowingly or recklessly, to supply information which is false or misleading in a material respect to the council in response to any requirement under the Community Infrastructure Levy Regulations 2010 (as amended).

A person guilty of this offence is liable;

• on summary conviction, to a fine; or
• on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or both.