New tax for landowners to challenge development in Bristol
The Community Infrastructure Levy (CIL), a new charge on development which will contribute to local infrastructure, is in danger of threatening the viability of new residential development in Bristol, according to property specialists Savills.
CIL will be charged on new development of over 100 square metres (1076 sq ft) and is to be spent on delivering local infrastructure such as roads, hospitals and schools. The monies raised from new developments will be collected by the Local Authority. A proportion of it, which will then be defined, will be returned directly to the Local Authorities to spend on its priorities.
Under proposals put forward by the Government last year, a ‘meaningful proportion’ will be paid directly to the neighbourhood in which the development sits for spending on community infrastructure. It will be up to local communities to define their needs.
The charging schedule for the CIL in Bristol is currently being produced. Once agreed, the charge levied will be set and non negotiable.
Ben Taylor of Savills development team comments, “If set at an appropriate, viable level, the Community Infrastructure Levy should be a transparent mechanism to collect money for important infrastructure, whilst giving developers the certainty of knowing how much they will need to pay from the outset.
“However, if it is set too high it could threaten the viability of development, something which is already under huge pressure in the current economic climate and planning regime.”
For further information on the Community Infrastructure Levy and development opportunities in Bristol, visit savills.co.uk.