Government's Coronavirus Response: CIL Changes

• Published date: 14 July 2020
• Subject Matter: Coronavirus (COVID-19), Government Measures
• Law Firm: DMH Stallard
• Author: Chloe Karamian

13 July, 2020

On 30 June, the Government laid out Coronavirus CIL amendment regulations, the purpose being to try to reduce cash flow issues for developers.

What are the changes?

1. Developers can ask for deferrals, but importantly only for CIL payments due from the date that the amendments come into effect (TBC but expected before 22 July) and 31 July 2021. This is not retrospective but looking at any payments due soon and in the following year
2. Developers can ask that any interest accrued on any CIL payment subject to a deferral request is credited against the CIL amount

Who is eligible?

A person who:

• Has received a CIL demand notice
• Is required to pay CIL between the date the amendments come into effect (TBC but expected before 22 July) and 31 July 2021
• Has an annual turnover not exceeding '45m [note that NPPG sets out some guidance to consider this]
• Is experiencing financial difficulties (which is defined as including such difficulties which would be likely to have an unacceptable impact on their economic viability) for reasons related to the effects of coronavirus resulting in difficulty paying the CIL

What is the procedure?

The person seeking the deferral must make it as a written request to the CIL collecting authority either (a) no more than 14 days before or (b) on or as soon as practicable after the CIL payment is due.

The authority must consider the request as soon as practicable and give its determination within 40 days of receipt.

The authority can ask for further supporting evidence which the person seeking deferral must provide within 14 days. National Planning Policy Guidance suggests evidence can include declarations from a...