Community Infrastructure Levy – penalties and surcharges

Part 9 of the CIL Regulations provide a range of enforcement measures to penalise non-compliance with the CIL process.

If the CIL process is not complied with, the following surcharges/interest will be applied:

• Surcharge of £50 on each person liable to pay CIL for failure to assume liability prior to commencement of development (Regulation 80)
• Surcharge of £500 for each material interest where liability has to be apportioned (Regulation 81)
• Surcharge equal to 20% of the chargeable amount or £2,500, whichever is the lower amount, for failure to submit a Notice of Chargeable Development (Regulation 82)
• Surcharge equal to 20% of the chargeable amount/notional chargeable amount or £2,500, whichever is the lower amount, for failure to submit a Commencement Notice (Regulation 83)
• Surcharge equal to 20% of the chargeable amount or £2,500, whichever is the lower amount, for failure to notify of a disqualifying event (Regulation 84)
• Surcharge equal to 5% on the outstanding liability or £200, whichever is the greater amount, for late payment after the end of 30 days after the liability is due, further increasing if still outstanding after six months and then again after 12 months (Regulation 85)
• Surcharge equal to 20% of the relevant amount or £1,000, whichever is the lower amount, for failure to comply with an Information Notice (Regulation 86)
• Late payment interest on any unpaid relevant amount at an annual rate of 2.5% above the Bank of England base rate starting on the day after payment was due and ending on the day the unpaid amount is received (Regulation 87)

If a surcharge is imposed you may have certain rights to appeal.

In cases of persistent non-compliance or where recovery measures have been unsuccessful, further enforcement options available include

• the service of a stop notice,
• application to the courts for a liability/charging order,
• seizure of goods and;
• commitment to prison (in extreme circumstances)

More details can be found in the government guidance.

If you have any questions please contact CIL@portsmouthcc.gov.uk

Further information can be found on the Community Infrastructure Levy (CIL) homepage.