Thursday, April 8, 2010

New Charge Levies for Development Pipeline

The region's development pipeline could face increased pressure from today when local authorities across the region become empowered to implement a new charging system on future developments, according to experts.

The Planning Act of 2008 made provision for the Community Infrastructure Levy (CIL), which is a charge to be levied on new developments, payable when a development with planning consent commences.

The charge relates to residential and non-residential buildings and will be based on a formula accounting for the size and character of the development. Charges will expressed as a price ‘per square metre’ of floor space relating to different use classes and will be linked to an index of inflation.

From today, local authorities have the power to implement this new charging system and utilise money raised from it to pay for sub regional infrastructure.
However, experts believe the process of preparing the framework required is likely to take 12 months or more.

Will this be viewed as an additional tax on development and will it severely affect an already struggling sector?

Workplace Consultancy

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