Registered providers, (RPs), should be aware both of the reliefs available when they are acquiring land for development and the importance of timing when applying for relief.
Charity Relief: Where a RP is a charity and the chargeable development will be used wholly or mainly for a charitable purpose, the RP can claim charitable relief from CIL. Charitable relief, if available, applies to the whole development.
Social Housing Relief: This is only available for qualifying dwellings (not for the internal or external communal areas such as car parking and staircases or hallways) and is only available for social rented housing, intermediate housing or shared ownership, not for Affordable Rented dwellings.
Changes, due in early 2014, are likely to mean that RPs will be able to claim relief for affordable rent dwellings and that the communal areas will be relieved from CIL at least in part. This means that the common parts in a mixed tenure development which are attributable to use by the social housing will be relieved from CIL.
NB: It is absolutely critical that whichever CIL relief housing associations claim, that applications for relief are made before the development starts on site. Any relief will be lost if the application is not made, the decision notified and a commencement notice submitted before any building work starts.