Community Infrastructure Levy – a reminder on commencement notices

How to serve a commencement notice

Last year we wrote here about Community Infrastructure Levy (CIL) liability notices and associated financial penalties, following a decision by the Planning Inspectorate that a liability notice had been correctly served by the charging authority by sending it to the applicant’s agent via email. 

Last month, the Inspectorate had to consider whether an applicant had correctly served a commencement notice by sending a letter (see here; appeal with reference: APP/K0235/L/24/3347269).

Regulation 67 of the CIL Regulations 2010 (the CIL Regs) details that a commencement notice must be submitted in writing on a form published by the Secretary of State (or on a form to substantially the same effect) prior to commencing development. The Secretary of State has published a template “Form 6” which can be found here, for such a purpose. 

In this case, whilst the Inspector expressed sympathy for the appellant, noting that he had sent a letter to the charging authority informing them of his intention to commence works, it was not in the correct form – therefore it did not comply with the requirements of Regulation 67 and a surcharge was upheld. 

This decision serves as a reminder for applicants to ensure careful compliance with the CIL Regs given that breaches, even if they are genuine mistakes, can lead to financial penalties being imposed. 

When to serve your commencement notice

Regulation 67 states that a commencement notice must be submitted “no later than the day before the day on which the chargeable development is to be commenced”. It is therefore important to establish when development is due to commence.  

Earlier this year we wrote here about the meaning of “commencement” for CIL purposes and the issue has again come before the Planning Inspectorate (see here; appeal with reference: APP/T5150/L/24/3345047).

Regulation 6 of the CIL Regs details that development is to be treated as commencing on the earliest date when a material operation begins, with “material operation” having the same meaning as section 56 of the Town and Country Planning Act 1990 (the TCPA).

In this appeal, the charging authority considered that demolition of internal walls amounted to commencement. However, the Inspector determined that the works undertaken were minor such that they did not amount to a “material operation”.  The effect was that a commencement notice did not have to be served and CIL had not been triggered.  

Those undertaking preliminary works should consider the risk that the Council will argue that the permission has been implemented and CIL has become payable.