Purpose

The purpose of this delegated decision is to
not proceed with enforcement of the Liability and Demand Notice and
approve a credit note to be issued for 1 x invoice of
£48,823.53 due to the unique circumstances of this
case.

Decision

This is a unique set of circumstances where a
self-build exemption for CIL liability was applied for and
permitted on a planning permission.

The planning permission was implemented by the original owner, by
way of the installation of foundations and the lower wall of the
garage only. However due to a change in personal circumstances, the
land with the implemented planning permission was put up for sale
by the original owner. At this time, the liable party was informed
that as a self-build exemption had been granted, any change of
ownership would result in a disqualifying event for the self-build
exemption as stated in CIL regulations 2010 (as amended).

Both the buyer (now the current owner) and the original owner were
both fully aware of the requirement to pay the chargeable amount on
completion of sale due to the disqualifying event. Both parties
wanted to transfer the liability on completion of sale with the new
owner agreeing to pay the chargeable amount within 7 days.

On completion of sale, a transfer of liability form was submitted
to us. The transfer of liability was actioned and a new liability
and demand notice was issued for the full chargeable amount to the
new owner.

Subsequently, the buyer then advised us that he was intending to
submit a new planning application to change the scheme that was
approved on the original planning permission.

Following further correspondence with the new owner and further
research of the CIL regulations, it was recognised that, due to an
administrative error in the interpretation of the CIL regulations,
the transfer of liability should not have been processed and
acknowledged. Therefore, at the point of completion of sale a new
Liability and Demand Notice should have been issued to the original
liable party for the chargeable amount. As the liability for CIL
has been transferred, it would be difficult to pursue the liability
with the previous owner through the courts.

The current owner has confirmed that if the new application is
approved, he is willing to enter into a unilateral undertaking.
This would ensure that the original planning permission cannot be
implemented further and the new planning application if approved
would be liable to the CIL process. The unilateral undertaking is
currently being drafted by our Legal team.

If this delegated decision is approved, then it is intended that a
credit note is raised for the invoice on the signing of the
unilateral undertaking.

It should be noted that the original planning application was
subject to a self-build exemption. If eligible, the new owner may
also apply for a self-build exemption on the new planning
application if approved.