Mezzanines and CIL - changes to Planning Practice Guidance
The Government has revised National Planning Practice Guidance (PPG) to confirm that mezzanine floorspace, inserted into an existing building, is not liable for CIL unless the mezzanine forms part of a wider planning permission that seeks to provide other works as well.
PPG previously included a 200sqm threshold, whereby only mezzanines over 200sqm (gross) were liable for CIL, unless the mezzanine was linked to wider works.
The change has been made in light of a high court decision earlier this year which confirmed that the CIL Regulations do not apply to new mezzanines (but does apply where a mezzanine forms part of a wider package of works).
- A standalone planning application for a 500sqm mezzanine would not be liable for CIL.
- However, a 500sqm mezzanine within a 2,500sqm new retail unit would be liable and CIL would be payable across the entire gross internal area.
- Similarly, if a mezzanine and external alterations were grouped in a single planning application, the mezzanine would still be CIL liable.
Nevertheless the implications of the changes are clear and ultimately beneficial.
Taking the above 500sqm mezzanine as an example. Previously, if retail floorspace attracted a CIL charge of £100 per sqm, the mezzanine would have a CIL requirement of £50,000. This CIL requirement now falls away.
It remains to be seen how the changes to PPG will be reflected in already adopted CIL Charging Schedules. There could be a case that some existing Charging Schedules fall foul of the CIL Regulations.
The changes emphasise the need to properly understand both the planning (development) regulations and specific CIL Regulations.
NJL has excellent retail and CIL expertise and can advise on the most appropriate strategy to deliver development. Should you require any further information then please contact our Leeds or Manchester office.