Councils can now compensate homeowners who missed out on Community Infrastructure Levy (CIL) exemptions due to clerical mistakes, housing minister Matthew Pennycook has confirmed.
In a letter to local authorities, Pennycook said refunds may be ‘appropriate’ where a householder would have qualified for an exemption but failed to claim it correctly because of an administrative error and now ‘faces significant hardship as a consequence.’
The CIL is designed to fund local infrastructure, such as schools and road upgrades, by charging developers of larger schemes. However, critics say a growing number of homeowners carrying out improvements have been hit with unexpectedly large bills after failing to formally request exemption, leaving them liable for the full charge.
Councils had previously argued they had limited discretion to waive incorrectly applied levies. Pennycook's intervention is expected to give authorities greater confidence to use their discretion and issue refunds in genuine cases of administrative oversight.
