Annex A: CIL Instalment Policy Review

Background

1. The CIL Charging Schedule was approved by Council on 6 November 2025 for implementation on 01 February 2026. Once the CIL Charging Schedule takes effect, payment of CIL becomes due from commencement of the development and as defined in an Instalment Policy. From that date, any liable application will receive a CIL Liability Notice.

2. The Community Infrastructure Levy (CIL) instalment policy in the UK planning system is defined by the CIL Regulations 2010 (as amended), particularly Regulation 69B and 70. In summary it’s purpose is to allow developers to pay CIL liabilities in staged payments rather than a single lump sum, improving cash flow and supporting development viability.

3. The instalment policy is set at the Local Authority discretion and issued via demand notice; Each charging authority can adopt its own instalment policy, specifying:

· Number of instalments.

· Payment intervals.

· Percentage of liability per instalment. These policies must comply with the CIL Regulations.

4. The proposed Instalment Policy (Table 1) was set out as part of Draft Charging Schedule and consulted on in Spring 2023 and Winter 2024. The instalment policy is not part of the Charging Schedule itself, so no conclusions arose as part of the formal examination process.

Table 1: CIL Instalments policy consulted in December 2023

Overall CIL liability	Payment instalments
Less than £20,000	Payment in full within 240 days
£20,000 - £99,999	50% paid within 360 days Further 50% paid within 540 days
£100,000 - £499,999	10% paid within 270 days Further 15% paid within 540 days Further 25% paid within 720 days Remaining 50% paid within 900 days
£500,000 or more	Agreement of project specific payment schedule

5. As part of their decision, Council agreed to delegate to the Director of City Development a review of the Instalment Policy previously consulted on and submitted for consideration at Examination.

Rationale for review

6. The CIL rates as adopted have been accepted by an independent examiner as affordable for the majority of typologies. Following the Examiner’s modifications and likely impact on the CIL funds to be received, a review of the triggers and timescales on the instalment plan was recommended to ensure receipt of funds expeditiously. This is intended to speed up CIL receipts and support infrastructure delivery.

Review of comparison authorities

7. The original policy presented longer timeframes in comparison to other CIL charging authorities (Annex 1). These have been used to benchmark our approach and revised policy in considering the liability cost and payment instalments.

8. In general, the review of other authorities shows:

· The CIL cost band categories are broadly similar, with some authorities splitting out higher CIL payments;

· Payment periods are shorter (within 60 -90 days) for payments under £50k

· Payments under £100k are made in under 1 year;

· Most complete all payments within 2 years, with the exception of very high value amount (£2m+).

· Opportunity for CYC to significantly reduce the timescales for collection of CIL.

Proposed Amendments to CYC Instalments Policy

9. We consider the following amends to the instalment policy with a view to speeding up CIL receipts to within a manageable timescale:

Overall CIL liability	Payment instalments
Less than £20,000	~~Payment in full within 240 days~~ Payment in full within 60 days
£20,000 - £99,999	~~50% paid within 360 days~~ ~~Further 50% paid within 540 days~~ 50% paid within 90 days Further 50% paid within 180 days
£100,000 - £499,999	~~10% paid within 270 days~~ ~~Further 15% paid within 540 days~~ ~~Further 25% paid within 720 days~~ ~~Remaining 50% paid within 900 days~~ 25% at 90 days 25% at 180 days 50% at 360 days
£500,000 or more	~~Agreement of project specific payment schedule~~ 25% at 90 days 25% at 240 days 50% at 480 days

10. An alternative approach could also split the higher CIL liabilities as follows:

£500,000 -£2,000,000

25% at 90 days

25% at 240 days

50% at 480 days

Over £2,000,000

25% at 90 days

25% at 240 days

25% at 480 days

25% at 720 days

Consultation

In developing the revised instalment policy, colleagues in Development Management were asked for their comments. They noted that the Instalment Policy (both in terms of thresholds, time periods and proportion of instalments) strikes a balance between allowing CIL liable developments to make their payments in a structured manner while also facilitating the Council to spend collected monies on the identified infrastructure priorities.

They noted that the alternative approach (as identified in paragraph 10 above) whereby higher CIL liabilities were split out, was unlikely to be necessary. Residential development which could breach a CIL Liability of £2 million would require a quantum of development typically seen on Strategic Sites and would likely be in the order of 280+ dwellings and comprise of development on a Greenfield, unallocated site which did not give rise to any lawful existing use credit. For Purpose Built Student Accommodation (PBSA) a development of 100+ units would result in over £0.5 million, although such development is often on brownfield sites and so some demolition/ lawful existing use credit would likely reduce the CIL liability below the £0.5m threshold.

Where authorities do include a higher CIL liability threshold in their instalment policy, these are often London based authorities where CIL charging rates are higher and development is often denser.

Next steps

Following agreement, we will

· Prepare an officer decision

· Prepare the CIL instalment policy for online

· Notify interested parties and stakeholders

· Update necessary Development Management information

Annex 1: CIL Instalment Policy Comparison Table

Authority	CIL Band	No. of Instalments	Instalment Schedule	Max Duration
Cotswold	Up to £6,000	2	10% at 60 days, 90% at 270 days	9 months
Cotswold	£6,001–£30,000	3	10% at 60 days, 45% at 270 & 365 days	1 year
Cotswold	£30,001–£150,000	3	10% at 60 days, 45% at 365 & 548 days	18 months
Cotswold	£150,001–£300,000	4	10% at 60 days, 30% at 365, 548, 730 days	2 years
Cotswold	£300,001–£600,000	5	10% at 60 days, 23% at 365, 548, 730, 1095 days	3 years
Cotswold	£600,001–£1.2m	6	10% at 60 days, 18% at 365, 548, 730, 1095, 1460 days	4 years
Cotswold	£1.2m–£1.8m	7	10% at 60 days, 15% at 365, 548, 730, 1095, 1460, 1825 days	5 years
Cotswold	£1.8m+	8	10% at 60 days, 13% at 365, 548, 730, 1095, 1460, 1825, 2190 days	6 years

Wandsworth	< £20,000	0	100% within 60 days	60 days
Wandsworth	£20k–£500k	4	25% or £20k at 60 days, rest at 120, 180, 240 days	8 months
Wandsworth	£500k–£2m	4	£250k at 60 days, rest at 120, 180, 240 days	8 months
Wandsworth	£2m–£8m	4	£500k at 60 days, rest at 180, 360, 540 days	18 months
Wandsworth	£8m+	4	£2m at 60 days, rest at 180, 360, 540 days	18 months

Chichester	< £50,000	0	100% within 90 days	90 days
Chichester	£50k–£249,999	2	£50k at 90 days, balance at 180 days	6 months
Chichester	£250k–£499,999	3	£100k at 90 days, rest at 180 & 270 days	9 months
Chichester	£500k–£999,999	4	£250k at 90 days, rest at 180, 270, 360 days	1 year
Chichester	£1m+	4 (negotiable)	As above, but open to negotiation	Flexible

Cheshire West & Chester	< £15,000	0	100% within 90 days	90 days
Cheshire West & Chester	£15k–£50k	2	50% at 90 days, 50% at 180 days	6 months
Cheshire West & Chester	£50k–£100k	2	50% at 180 days, 50% at 365 days	1 year
Cheshire West & Chester	£100k–£250k	3	25% at 90 days, 25% at 180, 50% at 365 days	1 year
Cheshire West & Chester	£250k–£500k	3	25% at 180, 25% at 365, 50% at 730 days	2 years
Cheshire West & Chester	£500k–£2m	5	10% at 180, 15% at 365, 25% at 545, 25% at 725, 25% at 905 days	2.5 years
Cheshire West & Chester	£2m+	5	10% at 365, 15% at 730, 25% at 1095, 25% at 1460, 25% at 1825 days	5 years

Lambeth	≤ £100k	0	100% within 60 days	60 days
Lambeth	£100k–£10m	2	50% or £100k at 60 days, rest at 240 days	8 months
Lambeth	£10m–£15m	3	Equal thirds at 60, 240, 420 days	14 months
Lambeth	£15m–£20m	4	Equal quarters at 60, 240, 420, 600 days	20 months
Lambeth	£20m+	5	Equal fifths at 60, 240, 420, 600, 780 days	26 months

Reading	Up to £25,000	1	100% within 60 days	60 days
Reading	£25,001–£250,000	2	50% at 60 days, 50% at 120 days	4 months
Reading	£250,001–£500,000	3	25% at 90 days, 25% at 180 days, 50% at 360 days	1 year
Reading	Over £500,000	3	25% at 90 days, 25% at 360 days, 50% at 480 days	16 months

Southwark	≤ £100,000	1	100% within 60 days	60 days
Southwark	> £100,000	2	50% at 60 days, 50% at 240 days	8 months
Southwark	Large phased schemes	Case-by-case	Council may allow more instalments	Flexible

Newcastle	< £15,000	1	100% within 2 months	2 months
Newcastle	£15,000–£50,000	2	50% at 3 months, 50% at 6 months	6 months
Newcastle	£50,001–£99,999	3	1/3 at 3, 6, 9 months	9 months
Newcastle	≥ £100,000	4	25% at 6, 12, 18, 24 months	2 years

Leeds	≤ £9,999	1	100% within 2 months	2 months
Leeds	£10k–£59,999	2	50% at 3 & 6 months	6 months
Leeds	£60k–£99,999	3	1/3 at 3, 6, 9 months	9 months
Leeds	£100k–£499,999	3	1/3 at 6, 12, 18 months	18 months
Leeds	≥ £500,000	4	1/4 at 6, 12, 18, 24 months	2 years

Produced by:

City of York Council | Strategic Planning Policy Team

Directorate of Place| West Offices |Station Rise |York YO1 6GA