皇冠体育app

皇冠体育app following examples are based on the rates of Community Infrastructure Levy (CIL as below:

Residential development - 拢 50 per square metre (m2) GIA

Office development - 拢 40 per m2听GIA

Industrial development - 拢 30 per m2听GIA

皇冠体育appse rates are for illustrative purposes only.

皇冠体育app instalment examples are for illustrative purposes only. Every听local authority听will adopt, and may regularly change, their own instalment and threshold regimes.

皇冠体育app examples are assumed to take place within a year of the Charging Schedule being adopted unless otherwise indicated.

Example 1

Planning permission for:

Offices 鈥� GIA 1,000m2

10 detached houses 鈥� GIA 2,000m2

GIA of chargeable development = 3,000m2

CIL calculation:

1,000 sq m @ 拢40 per m2	=	拢 40,000
2,000 sq m @ 拢50 per m2	=	拢100,000
听	听	拢140,000

皇冠体育app developer defaults after 180 days having paid two instalments leaving 拢70,000 outstanding and has sold the land to another developer but has not submitted a liability transfer notice. 皇冠体育app collecting authority then apportions the outstanding amount between the owners of the material interests in the land in accordance with the apportionment formula in regulation 34. At the date of the apportionment one house had been completed and sold to a third party, with the remaining development in the process of construction and owned by the developer.

Apportionment:

At the date of the apportionment the houses were each worth 拢300,000 and the offices 拢1.2 million, assuming they had all been completed. 皇冠体育app value of the developer鈥檚 interest in accordance with regulation 34 is therefore 拢3.9 million (i.e. 9听houses x 拢300,000 = 拢2.7 million + 拢1.2 million for the offices). 皇冠体育app value of the interest in the house that has been sold is 拢300,000. 皇冠体育app total value of both interests is 拢4.2 million (i.e. 拢3.9 million + 拢300k).

皇冠体育app developer is liable for CIL as follows:

拢70,000 x (拢3.9 million 梅 拢4.2 million) = 拢65,000

皇冠体育app owner of the house is liable for CIL as follows:

拢70,000 x (拢300,000 梅 拢4.2 million) = 拢 5,000

Example 2

Planning permission for:

A 10 storey office building with a GIA of 5,000m2

CIL calculation:

5,000m2听@ 拢40 per m2听= 拢200,000

皇冠体育app development has commenced but no one has assumed liability for the payment of CIL. 皇冠体育app collecting authority then apportions the CIL payment between the owners of material interests in the relevant land in accordance with the apportionment formula in regulation 34.

皇冠体育app freehold interest in the site is owned jointly by Mr Jones and Mr Smith in equal shares and they have let the site on a 125 year lease听to a developer at a ground rent representing 10% of the market rental value of the completed offices.

Apportionment:

At the date of the apportionment the value of the freehold subject to the听lease听is 拢2.15 million and the value of the 125 year听lease听is 拢19 million, both valuations carried out on the assumption that the offices had been completed. 皇冠体育app total value of both interests is 拢21.15 million (i.e. 拢2.15 million + 拢19 million).

皇冠体育app freeholders, Mr Jones and Mr Smith, are liable for CIL as follows:

拢200,000 x (拢 2.15 million 梅 拢21.15 million) = 拢20,330

皇冠体育app developer is liable for CIL as follows:

拢200,000 x (拢19 million 梅 拢21.15 million) = 拢179,670

Comment

Mr Jones and Mr Smith are joint owners of the freehold interest but in accordance with regulation 37(1) the interest to be valued is the freehold entirety and not the undivided half shares of each owner.

Example 3

Planning permission for:

A terrace of 10 industrial units each with a GIA of 200m2. 皇冠体育app total GIA of the chargeable development is 2,000m2.

CIL calculation:

2,000m2听@ 拢30 per m2听= 拢60,000

皇冠体育app development has commenced but the developer who has assumed liability to pay CIL in respect of the whole development has not paid the first instalment due 60 days after commencement and cannot be traced, despite going through the courts. 皇冠体育app collecting authority then apportions the CIL payment between the owners of material interests in the relevant land in accordance with the apportionment formula in regulation 34.

皇冠体育app freehold interest in the land on which 4 of the units are being constructed is owned by Mr Jones. 皇冠体育app freehold interest in the land on which the remaining 6 units are being constructed is owned by Mr Smith. 皇冠体育app whole site was let to the developer on a long lease but the听lease听has been forfeited before the date of apportionment.

Apportionment:

At the date of the apportionment the freehold value of each of the units if fully completed is 拢120,000. 皇冠体育app value of Mr Jones鈥� interest is 拢480,000 and the value of Mr Smith鈥檚 interest is 拢720,000. 皇冠体育app total value of both interests is 拢1.2 million (i.e. 拢480,000 + 拢720,000)

皇冠体育app freeholders are liable for CIL as follows:

Mr Jones

拢60,000 x (拢480,000 梅 拢1,200,000) = 拢24,000

Mr Smith

拢60,000 x (拢720,000 梅 拢1,200,000) = 拢36,000

Comment

Mr Jones and Mr Smith are joint owners of the site but they each own the freehold interest in a physically different part of the site. Regulation 37(1) is not therefore relevant in this example.

Example 4

Planning permission for:

A 6 storey block of 20 flats with a total GIA of 1,600m2

CIL calculation:

1,600m2听@ 拢50 per m2听= 拢80,000

皇冠体育app developer defaults after 240 days having paid two instalments, leaving 拢40,000 outstanding and having sold the freehold to a third party but has not submitted a liability transfer notice. 皇冠体育app collecting authority then apportions the outstanding amount between the owners of the material interests in the land in accordance with the apportionment formula in regulation 34. At the date of the apportionment 5 flats had been sold on 125 year leases at fixed ground rents of 拢100 per annum and the remaining 15 were under construction.

Apportionment:

At the date of the apportionment the value of the 125 year leases in each of the flats is 拢100,000. 皇冠体育app total value of leasehold interests in the flats sold is therefore 拢500,000 (i.e. 5 flats at 拢100,000).

皇冠体育app value of the retained freehold interest in those flats sold (i.e. the right to receive the ground rent for 125 years) is 拢2,000 per flat. 皇冠体育app value of the freehold interest in those flats is therefore 拢10,000 (i.e. 5 flats at 拢2,000).

Assuming the development is complete the value of the freehold interest in the remaining flats is 拢1.53 million (i.e. 15 flats at 拢102,000).

皇冠体育app total value of the freehold interest is 拢1.54 million (i.e. 拢10,000 + 拢1.53 million).

皇冠体育app total value of all the interests is therefore 拢2.04 million (i.e. 拢500,000 + 拢1.54 million).

皇冠体育app freeholder is liable for CIL as follows:

拢40,000 x (拢1,540,000 梅 拢2,040,000) = 拢30,196

皇冠体育app individual flat owners are each liable for CIL as follows:

拢40,000 x (拢 100,000 梅 拢2,040,000) = 拢1,960.80

Example 5

Planning permission for:

A development of two pairs of semi detached houses each with a GIA of 125m2.

GIA of chargeable development = 500m2.

CIL calculation:

500m2听@ 拢50 per m2听= 拢25,000

皇冠体育app developer defaults after 180 days having paid two instalments, leaving 拢12,500 outstanding and has sold the freehold to a developer but has not submitted a liability transfer notice. 皇冠体育app collecting authority then apportions the outstanding amount between the owners of the material interests in the land in accordance with the apportionment formula in regulation 34. At the date of the apportionment one of the houses had been sold to Mr Jones and one to Mr Smith. Mr Smith immediately extended his house under permitted development by adding a 20m2听conservatory which had been completed by the date of apportionment. 皇冠体育app remaining houses were still under construction.

Apportionment:

At the date of the apportionment the value of the houses assuming they were completed is 拢150,000, with the exception of the house owned by Mr Smith which is worth 拢165,000.

Assuming the houses are completed, the value of the developer鈥檚 interest is therefore 拢300,000 (i.e. 2 x 拢150,000).

皇冠体育app total value of all the interests is 拢615,000 (i.e. 拢150,000 + 拢165,000 + 拢300,000).

皇冠体育app freeholder is liable for CIL as follows:

拢12,500 x (拢300,000 梅 拢615,000) = 拢6,098

Mr Jones is liable for CIL as follows:

拢12,500 x (拢150,000 梅 拢615,000) = 拢 3,049

Mr Smith is liable for CIL as follows:

拢12,500 x (拢165,000 梅 拢615,000) = 拢 3,353

Comment

Mr Smith would not normally have been liable for CIL on the extension as its GIA was below 100 sq m (regulation 42). However, it formed part of the property at the date of apportionment and has to be included in the value of the material interest at the date of apportionment.

Example 6

Planning permission for:

A 6 storey office building with a GIA of 12,000m2

CIL calculation:

12,000m2听@ 拢40 per m2听= 拢480,000

皇冠体育app development has commenced but no one has assumed liability for the payment of CIL. 皇冠体育app collecting authority then apportions the CIL payment between the owners of material interests in the relevant land in accordance with the apportionment formula in regulation 34.

皇冠体育app freehold in the site is owned by Mrs Jones and she has let part of the site on a 125 year听lease听to a developer at a ground rent representing 15% of the market rental value of the office building, subject to 5 yearly rent reviews. 皇冠体育app part of the land that has not been let is a potential access to an adjoining area of land that has hope value for future office development.

Apportionment:

At the date of the apportionment, assuming the office building is completed, the value of the freehold subject to the听lease is 拢4 million and the market value of the听lease听is 拢22 million. In addition, the potential access land that has not been let to the occupier has a value of 拢2 million.

皇冠体育app total value of the freehold interest is therefore 拢6 million.

皇冠体育app total value of all the interests is 拢28 million (i.e. 拢6 million + 拢22 million).

皇冠体育app freeholder is liable for CIL as follows:

拢480,000 x (拢 6,000,000 梅 拢28,000,000) = 拢102,857

皇冠体育app developer is liable for CIL as follows:

拢480,000 x (拢22,000,000 梅 拢28,000,000) = 拢377,143

Comments

Regulation 34(4)听provides that the value of a material interest is the price that it might reasonably be expected to obtain if sold on the open market on the day the apportionment takes place. In addition it has to be assumed that the chargeable development has been fully completed the day before the apportionment takes place. 皇冠体育app market value of the land will reflect not only the value of the chargeable development but the value for any undeveloped parts that have potential for further development.

Example 7

Planning permission for:

10 detached houses with a total GIA of 2,000m2

CIL calculation:

2,000m2听@ 拢50 per m2听= 拢100,000

皇冠体育app developer defaults after 120 days having paid one instalment, leaving 拢75,000 outstanding and has sold the land to another developer but has not submitted a liability transfer notice. 皇冠体育app collecting authority then apportions the outstanding amount between the owners of the material interests in the land in accordance with the apportionment formula in regulation 34. At the date of the apportionment one house had been sold to Mr Smith, a further one was sold subject to contract to Miss Jones, with the remaining development in the process of construction and owned by the developer.

Apportionment:

At the date of the apportionment and assuming the houses were completed each of them would have had a value of 拢300,000. As Miss Jones has not completed her purchase she does not yet own a material interest in her house.

皇冠体育app value of the developer鈥檚 interest is therefore 拢2.7 million (i.e. 9 x 拢300,000).

皇冠体育app total value of all the interests is 拢3 million (i.e. 拢300,000 + 拢2.7 million).

皇冠体育app developer is liable for CIL as follows:

拢75,000 x (拢2,700,000 梅 拢3,000,000) = 拢67,500

Mr Smith is liable for CIL as follows:

拢75,000 x (拢300,000 梅 拢3,000,000) =拢7,500

Miss Jones has no CIL liability.

Comments

An apportionment is only required if there is more than one material interest in respect of the relevant land. Regulation 4(1) defines a material interest as being a legal estate that is either the freehold or a听lease having more than seven years unexpired on the relevant date. Although Miss Jones has a binding contract to acquire the freehold the sale has not been completed at the date of apportionment so she does not yet actually own the freehold estate.

Example 8

Planning permission for:

A detached industrial building with a GIA of 7,500m2

CIL calculation:

7,500m2听@ 拢30 per m2听= 拢225,000

皇冠体育app development has commenced but no one has assumed liability for the payment of CIL. 皇冠体育app collecting authority then apportions the CIL payment between the owners of material interests in the relevant land in accordance with the apportionment formula in regulation 34.

皇冠体育app freehold in the site is owned by a developer who has let it to an occupier on a 25听year听lease at a rent of 拢300,000 per annum being 50% of the market rental value of the completed building, with 5 yearly reviews on the same basis. 皇冠体育app occupier paid a premium for the grant of the lease shortly before the date of apportionment.

Apportionment:

At the date of the apportionment the collecting authority has valued the freehold subject to the听lease听at 拢4.3 million and the leasehold interest at 拢2.3 million (i.e. a total values of 拢6.6 million).

皇冠体育app freeholder appealed against the apportionment and adopted figures of 拢3.7听million and 拢2.7 million respectively (i.e. a total value of 拢6.4 million).

皇冠体育app freeholder is liable for CIL as follows:

拢225,000 x (拢4.3 million 梅 拢6.6 million) = 拢146,591

皇冠体育app leaseholder is liable for CIL as follows:

拢225,000 x (拢2.3 million 梅 拢6.6 million) = 拢78,409

OR

皇冠体育app freeholder is liable for CIL as follows:

拢225,000 x (拢3.7 million 梅 拢6.4 million) = 拢130,078

皇冠体育app leaseholder is liable for CIL as follows:

拢225,000 x 拢2.7 million 梅 拢6.4 million = 拢94,922

Comments

皇冠体育app value of the material interests must be decided on the facts of the case having regard to the evidence submitted by the parties. As the freeholder is appealing against the collecting authority鈥檚 apportionment on the grounds that the valuations they have used in the apportionment formula are incorrect, the onus of proof is on the freeholder.

皇冠体育app value of the material interest to be used in the apportionment formula must be decided on the facts of the case having regard to the evidence submitted by the parties. This evidence may, for example, include professional valuations, details and analysis of comparable evidence, the premium paid by the leaseholder etc.