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Topic 17

Planning charges: fees, CIL and contributions

Understand planning fees, Community Infrastructure Levy forms and other contributions when budgeting for your project.

15 articles

Fees

Community Infrastructure Levy (CIL)

04What is CIL, and will my project pay it?CIL is a development charge for infrastructure, separate from the planning application fee. It can apply to new development of 100 m² or more and to new dwellings of any size, but only where an operative charging schedule applies and after the relevant exemptions and deductions are considered.05Borough CIL and Mayoral CIL: why London has twoLondon developments can pay both borough CIL and Mayoral CIL because they are separate charges supporting different infrastructure programmes. The borough normally collects both, but the applicable rates, calculations and relief decisions must be identified separately.06Extensions and annexes: the exemptionsAn extension to your main home and a residential annex can qualify for different CIL exemptions. Extensions below 100 m² which do not create a dwelling normally have the minor-development exemption; larger qualifying extensions and new annex dwellings require the correct claim and written approval before work starts.07Self-build exemption and the 3-year clawbackA qualifying individual can claim CIL self-build exemption for a home they build or commission for their own main residence. The exemption depends on completing the prescribed steps and keeping the home as their principal residence for at least three years after completion.08CIL forms step by step, from Form 1 to the commencement noticeCIL forms record different decisions: assessing the development, identifying the liable person, claiming relief and notifying the start. Form 1 does not grant an exemption, and the form numbers are not a sequence that every project must complete in full.09Starting work without a commencement notice: the surchargesStarting chargeable development without the required CIL commencement notice can produce a surcharge and loss of instalment arrangements. For the current household-relief procedure, the surcharge is generally 20% of the notional charge or £2,500, whichever is lower; failing to obtain the exemption before starting is a separate, potentially much larger liability.10Existing floorspace: how it reduces the chargeEligible existing floorspace can reduce a CIL calculation when a building is retained or demolished as part of the development. The main in-use test requires at least part of the building to have been in lawful use for a continuous six months within the relevant three-year period; an empty structure is not automatically a credit.

Other contributions

11Section 106 agreements and unilateral undertakingsA Section 106 agreement or unilateral undertaking is a legally binding way to secure planning obligations, such as affordable housing or site-specific mitigation. An agreement includes the council as a party; a unilateral undertaking is given by the landowner or other relevant party and cannot bind a council which is not a party to it.12Affordable housing contributions on small sitesA small housing site can still face an affordable-housing contribution under a council's published policy; fewer than ten homes is not a safe London-wide answer. Check the current national policy, the adopted local requirements, the way the homes are counted and whether the council seeks homes on site or a justified financial contribution.13Epping Forest SAC mitigation payments for new homesNew homes may need Epping Forest Special Area of Conservation mitigation where their effects fall within the council's assessment framework. Epping Forest District Council considers recreation pressure and traffic-related air pollution separately, so distance from the forest alone does not establish the complete payment or assessment requirement.14Carbon offset paymentsA carbon-offset payment can be required where a development covered by the relevant planning policy leaves a residual carbon-emissions shortfall after on-site reductions. The amount comes from the agreed energy assessment and the council's applicable pricing method; it is not a universal flat fee for every home project.15Building Safety Levy on new housing schemesThe Building Safety Levy came into effect in England on 1 October 2026 and can apply to qualifying new residential development, not just high-rise buildings. Liability depends on the building-control submission date, the wider development, the new residential floorspace and the statutory exemptions.