Section 106 and CIL in England: Checks for a Feasibility Appraisal
How to distinguish planning obligations and CIL, check local charging documents and record provisional liabilities, relief conditions and procedural responsibilities.
Quick answer
In England, section 106 planning obligations and Community Infrastructure Levy are different mechanisms that can affect a development’s obligations and costs. CIL depends on an applicable charging regime and statutory calculation rules; planning obligations must meet the relevant legal tests. Establish the site-specific position with the authority and appropriate advisers before using figures in an appraisal.
An early feasibility estimate should identify possible obligations without pretending a generic percentage is a confirmed liability. This guide addresses England. Rules and guidance for other UK jurisdictions must be checked separately, and local charging schedules and policies remain essential.
Distinguish planning obligations from CIL
Section 106 obligations are used in the planning context and can include financial or non-financial requirements. Government guidance identifies tests of necessity, direct relationship to the development, and fair and reasonable relationship in scale and kind. CIL is a separate levy where a charging authority has brought a charging schedule into effect. A site may involve one, both or neither; do not assume a universal combined rate.
Check the current charging and policy documents
Identify the charging authority, charging zone, development use and relevant dates. Read the current adopted charging schedule and applicable planning policies, including any affordable-housing requirements. Rates quoted for another borough, use or year are not a reliable site allowance. Discuss potential obligations early and document the status of each assumption.
Do not infer CIL liability from added area alone
Liability, deductions and relief depend on the statutory rules and facts of the proposal. Changes of use and retained or demolished floorspace need careful review; a simple claim that no added area means no CIL can be wrong. Assemble evidence of existing use and floorspace and obtain the authority’s calculation or appropriate advice. The CIL guidance explains the relevant conditions.
Treat relief and procedure as part of the programme
Exemptions or relief are not safe assumptions merely because a development has a particular label. Check eligibility, required claims, notices and timing before commencement, together with possible withdrawal or clawback. Confirm payment timing and any local instalment policy. Keep responsibility for each submission and deadline in the project programme.
Use current indexation and transparent appraisal assumptions
Use the applicable indexation method and calculation date; government guidance identifies the RICS CIL Index for the relevant annual indexation from 2020. Keep a provisional allowance separate from a confirmed liability. Do not use a generic percentage of development value or an unsupported borough rate as if it were agreed. Test uncertainty in the appraisal and ask the appropriate planning, legal and cost advisers to review material assumptions.
Record obligations as deliverable project actions
For each likely obligation, record the trigger, beneficiary or authority, estimated or agreed amount, delivery mechanism and evidence status. Negotiation and viability evidence do not automatically remove a policy requirement. Update the feasibility review when the authority position, design or programme changes.
Illustrative example
Illustrative scenario: A team checks the applicable charging schedule and planning-obligation context before inserting an allowance in the appraisal. It distinguishes a provisional estimate from an agreed liability.
Frequently asked
Does every development pay both CIL and section 106 contributions?
No. The applicable regime, proposal and planning circumstances determine the position.
Can I assume a relief applies automatically?
No. Check its conditions and procedural requirements before relying on it.
Does a change of use with no extra floor area always avoid CIL?
No. The statutory calculation and relevant existing-use facts need review.
Can Atlasly confirm the final liability?
This article does not establish that capability. Use the authority’s site-specific position and appropriate professional advice.
Conclusion
Identify obligations early, then replace provisional assumptions with traceable authority documents and advice. Keep the appraisal, submission responsibilities and programme triggers aligned.
About the author
Shatakshi Patil
Architect writing about pre-construction due diligence, planning context, and site intelligence workflows for design teams using Atlasly.
Sources and references
Authoritative references for the planning policies, regulations, and standards referenced in this article. Always check the publisher for the latest version.
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