Overview

A new Community Infrastructure Levy means landowners will need to think carefully about the potential cost of new farm buildings, even if erected under permitted development rights.

Payment (possibly by instalments) is triggered by the commencement of development. It is paid by the freehold owner at the time of the commencement of development and he will share liability with any tenants with more than 7 years of their lease to run at the date when planning permission was granted. There is provision for liability to be "assumed" under contract by someone who does not have a material interest in the land, but if that person fails to pay, the responsibility returns to the owner and his long term tenants.

The collecting authority has a wide range of remedies and enforcement methods if payment is not made including surcharges, interest, stop notices, injunctions, distress and charging orders. Criminal offences resulting in imprisonment may also be committed.

Click ‘View Briefing’ to read Burges Salmon’s analysis of the new tax.