Calculation of chargeable amount40

1

The collecting authority must calculate the amount of CIL payable (“chargeable amount”) in respect of a chargeable development in accordance with this regulation.

2

The chargeable amount is an amount equal to the aggregate of the amounts of CIL chargeable at each of the relevant rates.

3

But where that amount is less than £50 the chargeable amount is deemed to be zero.

4

The relevant rates are the rates, taken from the relevant charging schedules, at which CIL is chargeable in respect of the chargeable development.

5

The amount of CIL chargeable at a given relevant rate (R) must be calculated by applying the following formula—

$$\begin{array}{c}\underset{¯}{R\times A\times I_p}\\ I_c\end{array}$$

where—

• A = the deemed net area chargeable at rate R, calculated in accordance with paragraph (7);

• I_p = the index figure for the year in which planning permission was granted; and

• I_c = the index figure for the year in which the charging schedule containing rate R took effect.

6

In this regulation the index figure for a given year is—

a

the figure for 1st November for the preceding year in the national All-in Tender Price Index published from time to time by the Building Cost Information Service of the Royal Institution of Chartered Surveyors6; or

b

if the All-in Tender Price Index ceases to be published, the figure for 1^st November for the preceding year in the retail prices index.

7

The value of A must be calculated by applying the following formula—

$$G_R-K_R-\frac{\left(G_R\times E\right)}{G}$$

where—

• G = the gross internal area of the chargeable development;

• G_R = the gross internal area of the part of the chargeable development chargeable at rate R;

• K_R = the aggregate of the gross internal areas of the following—

  1. i

     retained parts of in-use buildings, and

  2. ii

     for other relevant buildings, retained parts where the intended use following completion of the chargeable development is a use that is able to be carried on lawfully and permanently without further planning permission in that part on the day before planning permission first permits the chargeable development;

• E = the aggregate of the following—

  1. i

     the gross internal areas of parts of in-use buildings that are to be demolished before completion of the chargeable development, and

  2. ii

     for the second and subsequent phases of a phased planning permission, the value E_x (as determined under paragraph (8)), unless E_x is negative,

• provided that no part of any building may be taken into account under both of paragraphs (i) and (ii) above.

8

The value E_x must be calculated by applying the following formula—

$$E_P-\left(G_P-K_{PR}\right)$$

where—

• E_P = the value of E for the previously commenced phase of the planning permission;

• G_P = the value of G for the previously commenced phase of the planning permission; and

• K_PR = the total of the values of K_R for the previously commenced phase of the planning permission.

9

Where a collecting authority does not have sufficient information, or information of sufficient quality, to enable it to establish that a relevant building is an in-use building, it may deem it not to be an in-use building.

10

Where a collecting authority does not have sufficient information, or information of sufficient quality, to enable it to establish—

a

whether part of a building falls within a description in the definitions of K_R and E in paragraph (7); or

b

the gross internal area of any part of a building falling within such a description,

it may deem the gross internal area of the part in question to be zero.

11

In this regulation—

• “building” does not include—

  1. i

     a building into which people do not normally go,

  2. ii

     a building into which people go only intermittently for the purpose of maintaining or inspecting machinery, or

  3. iii

     a building for which planning permission was granted for a limited period;

• “in-use building” means a building which—

  1. i

     is a relevant building, and

  2. ii

     contains a part that has been in lawful use for a continuous period of at least six months within the period of three years ending on the day planning permission first permits the chargeable development;

• “new build” means that part of the chargeable development which will comprise new buildings and enlargements to existing buildings;

• “relevant building” means a building which is situated on the relevant land on the day planning permission first permits the chargeable development;

• “relevant charging schedules” means the charging schedules which are in effect—

  1. i

     at the time planning permission first permits the chargeable development, and

  2. ii

     in the area in which the chargeable development will be situated;

• “retained part” means part of a building which will be—

  1. i

     on the relevant land on completion of the chargeable development (excluding new build),

  2. ii

     part of the chargeable development on completion, and

  3. iii

     chargeable at rate R.