CIL liability notices, commencement notices and surcharges
Assume liability, claim relief, serve the commencement notice, then start. Get that order wrong and you lose instalments and pick up a surcharge that appeals rarely overturn.
A CIL liability notice is the collecting authority's statement of how much Community Infrastructure Levy your permission attracts, and it arrives shortly after the decision notice rather than when you start work. It is not a bill. The bill is the demand notice, and it only comes after you have told the council you are starting. Between those two documents sit the two steps that most self-builders and small developers miss, and missing them costs money that no appeal can recover.
What the liability notice tells you and when it arrives
The collecting authority issues a liability notice as soon as practicable after granting permission that gives rise to a chargeable development. It states the chargeable amount, the calculation behind it, the payment procedure and the consequences of not following it.
Read three things on it immediately. The chargeable area, because that is where errors hide. Any deduction claimed for existing floorspace, because if the council has not applied one you may be paying for space you are removing. And the instalment policy, because most authorities publish one and it can spread payment over a year or more.
If the figures look wrong, the review route is time limited. You can ask the collecting authority to review the chargeable amount within 28 days of the liability notice, and if you are still not satisfied there is an appeal to the Valuation Office Agency. Those windows close quickly, and a chargeable amount that has not been challenged in time stands even if it was calculated on the wrong floor area.
Assumption of liability and who should sign it
Liability does not attach automatically to the applicant. Somebody has to assume it, using the assumption of liability form, and it can be submitted at any point before development starts.
Whoever assumes liability receives the demand notice and is chased for payment. On a site being sold with the benefit of permission, that is a negotiating point rather than an afterthought. Liability can be transferred to another party before the final payment falls due, and it can be withdrawn before commencement, though withdrawal only helps if someone else assumes it.
If nobody assumes liability, the levy falls on the landowners in proportion to their interests, the council apportions it, and a surcharge follows. That surcharge is modest in cash terms. The real damage is what happens next, because failing to assume liability also removes any exemption you might have claimed.
Self-build exemption is the sharpest example. A self-builder has to assume liability, claim the exemption before commencement, receive acknowledgement, serve the commencement notice, and then submit the second part of the claim with the supporting evidence within the period allowed after completion. Miss any of those steps and the full levy becomes payable. Councils have very little discretion here.
The notice you must serve before work begins
Regulation 67 of the Community Infrastructure Levy Regulations 2010 requires a commencement notice to be submitted to the collecting authority before the chargeable development begins, stating the intended start date. This is the single most expensive form in English planning.
Commencement for levy purposes follows the material operation test in section 56 of the Town and Country Planning Act 1990. Digging a trench for a foundation is a material operation. So is laying out a road. Site clearance and demolition usually are not, but the line is fine enough that you should serve the notice before any groundworks at all.
The CIL notice sequence from Form 1 to Form 6 sets out which document goes in when. The order that matters is: assume liability, claim any relief and get it acknowledged, serve the commencement notice, then start.
Surcharges and the loss of instalments
The regulations set out a schedule of surcharges, and they stack.
| Failure | Consequence |
|---|---|
| Failure to assume liability before commencement | A fixed surcharge for each person liable |
| Failure to submit a commencement notice | 20 per cent of the chargeable amount or £2,500, whichever is the lower |
| Apportionment of liability by the authority | A fixed surcharge for each landowner |
| A disqualifying event after relief is granted | 20 per cent of the chargeable amount or £2,500, whichever is the lower |
| Late payment | 5 per cent of the amount due at 30 days, with further additions at six and twelve months |
Alongside the surcharge, failing to serve a commencement notice removes the right to pay by instalments. On a scheme with a levy of £180,000 and a published instalment policy allowing payment over eighteen months, the whole amount becomes payable within a short window instead. That is a cash flow problem large enough to stop a small site.
Interest also runs on unpaid amounts at a rate set by reference to the Bank of England base rate.
Demand notices, payment windows and appeals
Once a valid commencement notice is received, the authority issues a demand notice setting out what is due and when. Where there is no instalment policy, payment is due within 60 days of commencement. Where there is one, the notice sets out the stages.
Appeal routes differ by subject and they are strict on time.
- Chargeable amount: request a review by the collecting authority within 28 days of the liability notice, then appeal to the Valuation Office Agency.
- Apportionment between landowners: appeal to the Valuation Office Agency.
- Charitable relief and exemption decisions: appeal to the Valuation Office Agency.
- Surcharges: appeal to an appointed person through the Planning Inspectorate, generally within 28 days of the surcharge being imposed.
- Deemed commencement date: appeal to an appointed person where the authority has determined a start date you disagree with.
An appeal against a surcharge for failing to serve a commencement notice succeeds only in narrow circumstances, such as showing that the notice was in fact served. Not knowing about the requirement is not a ground.
A checklist for the weeks before you start on site
The sequence below takes an afternoon and protects a five figure sum on a typical small scheme.
- Find the liability notice and check the chargeable area against your own gross internal area calculation.
- Confirm whether a deduction for existing lawful floorspace has been applied, and challenge it inside the review window if it has not.
- Submit the assumption of liability form in the correct name, matching the entity that will own the land at commencement.
- Claim any exemption or relief and wait for written acknowledgement before doing anything on site.
- Serve the commencement notice, allowing for the authority's receipt rather than your posting date, and keep proof.
- Diarise the payment dates from the demand notice and the deadline for any post-completion evidence.
- If ownership or the developing entity changes, deal with the transfer of liability before the change completes.
Levy exposure belongs in the appraisal at the same stage as build costs. Where a scheme is marginal, that figure feeds directly into a Viability Assessment, and a council reviewing your appraisal will expect the levy to be stated at the published rate with indexation applied.
This is general guidance, not legal advice. Charging schedules, instalment policies and relief procedures differ between authorities and the levy rates are indexed annually, so check the current schedule published by your collecting authority before relying on any figure here. PlanScope provides AI-assisted draft reports for planning applications. Reports should be reviewed before submission. We do not guarantee planning approval.
See PlanScope pricing if you want a drafted evidence base alongside the levy work on a small site.
Frequently asked questions
What happens if I start work without serving a commencement notice?
You lose the right to pay by instalments and the authority imposes a surcharge of 20 per cent of the chargeable amount or £2,500, whichever is lower. The whole levy then becomes payable in a short window. An appeal succeeds only in narrow circumstances, such as proving the notice was actually served.
Who should assume CIL liability?
The party that will own the land and be developing it at the point work starts, because that entity receives the demand notice and is pursued for payment. Liability can be transferred before the final payment falls due. If nobody assumes it, the authority apportions it between landowners and applies a surcharge.
How do I challenge the chargeable amount?
Ask the collecting authority to review the calculation within 28 days of the liability notice, then appeal to the Valuation Office Agency if you are still not satisfied. Check the chargeable area and any deduction for existing lawful floorspace first, since those are where most errors sit.
Does demolition count as commencement for CIL?
Commencement follows the material operation test in section 56 of the Town and Country Planning Act 1990. Digging foundation trenches and laying out a road are material operations. Demolition and site clearance usually are not, but the boundary is fine enough that the safe course is to serve the notice before any groundworks.
Can I lose a self-build exemption by missing a step?
Yes, and it happens often. The self-build route requires assumption of liability, a claim acknowledged in writing before commencement, a commencement notice, and supporting evidence submitted within the period allowed after completion. Missing any step makes the full levy payable, and councils have very little discretion to help.
Sources and further reading
This article is general guidance about the planning system in England and, where stated, the rest of the UK. It is not legal or professional advice. Check your local planning authority’s validation requirements and take professional advice for your specific site.