AC-2025-LON000257 - [2025] EWHC 2984 (Admin)

The CIL Regulations 2010 set out the overall CIL scheme. In Lambeth at [8] to [28] Thornton J gives an extensive explanation of the structure and scheme of the 2010 Regulations. I refer below to the key parts for the purposes of this case.

CIL is payable by the person who has assumed liability to pay or, if no one has assumed liability, by either the owner or developer of the land, see s.208 and Regulations 31 and 33.

By Regulation 31, a person who wishes to assume liability to pay CIL in respect of a chargeable development must submit an “Assumption of Liability Notice” to the collecting authority. By Regulation 31(3), a person who assumes liability will be liable to pay an amount of CIL equal to the chargeable amount, less any relief granted, upon commencement of the chargeable development.

Importantly, Regulation 32 allows a person who has assumed liability to transfer the assumption of liability to another person, by submitting a liability transfer notice. By Regulation 32(3):

In the present case the Claimant did not submit a liability transfer notice in respect of liability on the 2016 permission.

Part 6 of the Regulations deals with “Exemptions and Relief”. The provisions creating an exemption from CIL for self-build housing were introduced in the Community Infrastructure Levy (Amendment) Regulations 2014 by Regulations 54A-D of the 2010 Regulations.

Regulation 54A (as relevant) states:

Regulation 54B sets out a detailed procedure for the operation of the exemption:

It can be seen from Regulation 54B that there is a very detailed procedure for the exemption and that Regulation 54B(5) requires compliance with the procedure in (2). The Regulations give the charging authority no discretion on the decision whether or not to grant the exemption.

Regulation 54C provides for the position at the completion of the self-build housing:

Regulation 54D of the CIL Regulations makes provision for the withdrawal of the exemption for self-build housing, inter alia, as follows:

The phrase “clawback period” is used for a number of the exemptions/reliefs (see: Regulations42C(1), 48(1), 53, and 54D(1)) and definitions for each are provided in Regulation 2, which states that, for the self-build exemption, “clawback period” means:

Regulation 2 defines “compliance certificate” as meaning a certificate given under:

The clawback period for the self-build exemption does not therefore begin until after the building work has been completed and inspected.

Regulation 57 and 58 make provision for relief to be granted in exceptional circumstances. Although there is no suggestion that that applies in the present case it is in my view important because it shows that this was a detailed scheme where, if exceptional circumstances were claimed they were expressly dealt with in the Regulations.

Regulation 65 deals with the making of a liability notice. Regulation65(1) states:

Regulation65 then makes provision for the issuing of revised liability notices in specified circumstances. It is important to note that Regulations65(1) to (4) are in mandatory terms, setting out what the collecting authority “must” do. Then Regulation 65(7), which is central to the Claimant’s Ground Two, states:

A Commencement Notice must be submitted to the collecting authority no later than the day before chargeable development is commenced – see: Regulation 67.

The collecting authority must serve a Demand Notice on each person liable to pay CIL on a chargeable development, stating the date(s) on which payment is due – see: Regulation 69. By Regulation 69(2)(c) a Demand Notice must identify the Liability Notice to which it relates. There is nothing in Regulation 69 which gives the collecting authority the power to withdraw a demand notice.

Regulation 74B allows for CIL paid under a first planning permission to be credited against that due under a second in certain circumstances. Its first three paragraphs provide:

Regulation 74B was introduced to avoid a risk of double charging in circumstances where one development commences, is not completed, and another takes its place – see: Paragraph 138 of the CIL Guidance:

“…This levy credit is known as abatement (regulation 74B as inserted by the 2014 Regulations and amended by the 2019 Regulations). This provision is to ensure that the charge is not inappropriately levied twice (or more) as schemes change during the course of development of a site…”

The enforcement of CIL by collecting authorities is discretionary – see, for example: the use of the word “may” in Regulations 89(2), 90(2), 91(1), 94(1), 97(1), 98, 100(1), 103(1), 107(4) and 108(7). The Court’s enforcement powers also involve the exercise of discretion – see, for example: Regulations 104(1) and 107(5), both of which require consideration of all the circumstances of the case, including the personal circumstances of the debtor.