New Legislation – relating to the CIL Regulations 2010 (16/11/2020) …

The following 1 new Statutory Instrument (SI) comes into force on 16/11/2020:

New Legislation:

  • November 2020: SI 2020 No. 1226 - The Community Infrastructure Levy (Amendment) (England) (No. 2) Regulations 2020 (pdf) (link).

Notes:

  • The above SI 2020 No. 1226 makes amendments to the following SI:
    - CIL Regulations 2010.
  • The "Explanatory Note" (link) at the end of SI 2020 No. 1226 includes the following information:
    - "The [CIL Regulations 2010] provide for the imposition of a charge known as the Community Infrastructure Levy (“CIL”). Regulations 49 and 49A of the [CIL Regulations 2010] provides that a chargeable development is eligible for relief from liability to CIL where it comprises, or is to comprise, “qualifying dwellings”. A qualifying dwelling is currently one which meets at least one of five conditions set out in regulation 49(3) to (7A), or the criteria in regulation 49A(2). Regulation 53 of the [CIL Regulations 2010] provides that relief must be withdrawn if a dwelling ceases to be a qualifying dwelling before the end of a “clawback period” (as defined by regulation 2(1)).".
    - "These Regulations [SI 2020 No. 1226] amend the [CIL Regulations 2010] to add a sixth condition to regulation 49 (regulation 4 [of SI 2020 No. 1226]). In order to be a qualifying dwelling by virtue of this condition, the first sale of the dwelling must be for no more than 70% of the dwelling’s market value. In addition, a planning obligation under section 106 of the Town and Country Planning Act 1990 must have been entered into designed to ensure that any subsequent sale of the dwelling is for no more than 70% of its market value.".
    - "These Regulations [SI 2020 No. 1226] also make amendments to the discretionary social housing relief under regulation 49A of the [CIL Regulations 2010] (regulation 5 [of SI 2020 No. 1226]). For a dwelling to be a qualifying dwelling under the existing Regulation 49A, it must be sold for no more than 80% of its market value; it must be sold in accordance with a relevant policy published by the CIL charging authority; and liability to pay any CIL in relation to the dwelling must remain with the person granted relief under regulation 49A. These Regulations [SI 2020 No. 1226] introduce, as an alternative to the last of these criteria, a requirement that a planning obligation has been entered into designed to ensure that any subsequent sale of the dwelling is for no more than 80% of its market value.".
    - "These Regulations [SI 2020 No. 1226] also amend the definition of “clawback period” in regulation 2(1) of the [CIL Regulations 2010] (regulation 3(a) [of SI 2020 No. 1226]). Where relief is granted under condition 6 as set out in regulation 49(7B), it will be withdrawn only if the dwelling ceases to be a qualifying dwelling before being first sold in accordance with the criteria in that paragraph. Where relief is granted under regulation 49A, and a planning obligation has been entered into as mentioned in that regulation, it will be withdrawn only if the dwelling ceases to be a qualifying dwelling before being first sold in accordance with the criteria set out in regulation 49A(2).".

Other Notes:

  • The "Explanatory Memorandum" (link) to SI 2020 No. 1226 states the following:
    - "The Government intends to fully consolidate the [CIL Regulations 2010] when a suitable opportunity arises.".
  • The "CIL Regulations 2010 (Consolidated)" document on the Planning Jungle website has been updated to incorporate the above SI 2020 No. 1226, and currently incorporates a total of 17 SIs (i.e. the original SI + 16 amendment SIs).

Other Sources of Information:

  • February 2020: Consultation on the design and delivery of First Homes (pdf) (link).
    - Note: For more information about the above document, please view this post.
  • August 2020: First Homes - Design and delivery - Summary of responses to the consultation and the Government’s response (pdf) (link).
    - Note: For more information about the above document, please view this post.
  • November 2020: "Explanatory Memorandum" to SI 2020 No. 1226 (pdf) (link).

Updates to the Planning Jungle website: