Planning permission was granted for the demolition and erection of a new building. The old building was demolished however the new building differed from the approved plans. Following service of an enforcement notice retrospective planning permission was granted on appeal for the new building (as built). Find out if the building could be included as a deduction within the CIL liability calculations?
Liable for CIL: Regulation 40 of the CIL Regulations 2010 sets out the calculations of CIL liability for a chargeable development. The chargeable amount is calculated in reference to the gross internal area (GIA) of the chargeable development less any part of a relevant building that has been in lawful use for a continuous period of at least six months within the period of three years ending on the day planning permission first permits the chargeable development. A relevant building is defined as a building which is situated on the relevant land on the day planning permission first permits the chargeable development.
In an appeal decision of the Valuation Office Agency published 17 November 2015 relating to the aforementioned development, it was determined that as the building had been demolished pursuant to an earlier permission and was no longer situated on the land at the time of the grant of the new (retrospective) planning permission (ie. the date of the appeal decision) it was not within the provisions of Reg 40 and could not be used as a set off in calculating the GIA for the chargeable development.
Lessons: A building demolished under a previous planning permission, prior to the grant of a separate planning permission, will not be included as a set off in the calculation of the GIA for the chargeable amount of CIL under Reg 40. Care should be taken when considering the timing of demolition in relation to a chargeable development.
