Glossary
CIL: Community Infrastructure Levy
A charge per square metre of new floor space, set by councils that have adopted one.
What it means
The Community Infrastructure Levy is a charge councils can set on new development to fund local infrastructure such as roads, schools and health. It is charged per square metre of new floor space at rates in the council's charging schedule, which can vary by area and use, and is index-linked each year. Not every council charges it, and some developments, such as self-build homes, can claim relief. It is paid by the developer, so it comes off what they can pay for the land.
Worked example
ExampleTwelve homes of 100 m² each in an area charging £50 per m².
- Floor space
- 12 × 100 m² = 1,200 m²
- CIL
- 1,200 × £50 = £60,000
Every pound of CIL is a pound off the residual land value.
Information, not advice. Example figures are fictional and for illustration only.