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Community Infrastructure Levy

June 16, 2012

Although the Community Infrastructure Levy, a new planning charge, came into force on 6 April 2010, many local authorities have yet to adopt it.  Local authorities may do so shortly and as such purchasers should be aware of this possibility.  Consideration should be given to ensuring that any requirement to pay CIL is passed on to the Contractor (or an indemnity is given, as appropriate) and that, in contracts conditional upon planning,  an obligation to pay CIL entitles a purchaser to rescind the contract.