Charitable relief

For institutions where the chargeable development will be used for charitable purposes

Charitable development

Some types of charitable development are entitled to relief from CIL.

To apply for charitable relief, a charity must be:

• the owner of the land; and
• use the land for charitable purposes

A charitable institution, which owns a material interest in the land (a charity landowner) will get full relief from their share of the liability where:

• the chargeable development will be used 'wholly, or mainly, for charitable purposes'; and
• they meet the requirements of Regulation 43 of the CIL Regulations 2011*

These requirements* are:

• registered charities (those registered with the Charity Commission)
• charities exempted from the need to register, but which are still supervised by the Charity Commission
• other bodies, where they are established for charitable purposes
• exempt charities (charities which cannot register under the Charities Act 2011. And are not subject to the Charity Commission's supervisory powers. But are listed in Schedule 3 of the 2011 Charities Act and include some educational institutions, and most universities and national museums)

Who can apply?

To apply for charitable relief from CIL the following must apply:

• a material interest in the land must be owned by a charitable institution
• the chargeable development will be used wholly or mainly for charitable purposes
• that part of the chargeable development to be used for charitable purposes will be occupied by, or under the control of, a charitable institution
• the material interest cannot be owned jointly with a person who is not a charitable institution
• the exemption must not constitute a state aid

How to claim

The relief is not automatic, you must apply for it.

Please note, if there is more than one material interest in the land, each claimant must submit details of the portions they own. CIL can then be split accordingly. 'Apportionment' must be carried out in accordance with Regulation 34, as amended by the 2011 Regulations.

We'll then assess the claim for relief and notify you in writing of:

• the decision
• our reasons for the decision
• the amount of any relief granted

Disqualifying events

In some cases, a disqualifying event may occur where the conditions for granting relief no longer apply. And so any relief that was granted on the chargeable development can be "clawed back", and you'll need to pay it. You'll need to pay CIL in full if a disqualifying event occurs within seven years of the development starting.

Disqualifying events include:

• change of purpose - the owner of the land granted relief ceases to be a charitable institution or the building changes use to a non-charitable use
• change in ownership - the land granted relief transfers from a charitable institution to a non-charitable institution
• change of leasehold - charitable relief is given on leased land, and the lease is then terminated before the end of its term with the new owner a non-charitable institution

Where a disqualifying event occurs, you must notify us within 14 days of the event. Failure to do so will result in a surcharge, in addition to the full CIL amount.

If a disqualifying event occurs before commencement:

• the relief is cancelled
• full charge is due
• a new claim from the charitable institution can be made

If a disqualifying event occurs after commencement full charge is due.

Where a disqualifying event occurs, we'll issue a revised liability notice showing what is payable, and a demand notice will be served to collect the CIL amount due.

Appeals

You have the right to appeal against a grant of relief.

If you have any questions, or disagree with any aspect of the CIL, please contact the CIL Officer on 01553 616443 before making an appeal.

Appeals should be made to the Valuation Office Agency (VOA).

Important note

It's important that you don't begin work until you submit your application for relief and you receive notice from us with a decision.

If you start any work, including digging foundations, your application for relief will be refused.