Clawback of charitable relief

Charities can apply for mandatory and discretionary relief from the Community Infrastructure Levy (CIL).

Charitable relief is withdrawn if, within 7 years from the commencement of the development:

  • Change of purpose: the owner of the material interest ceases to be eligible for charitable relief (i.e. the owner ceases to be a charity or uses the building for an ineligible use) or
  • Change of ownership: the whole of the interest in the land in respect of which charitable relief was granted is transferred to a person not eligible for charitable relief or
  • Change of leasehold: the lease eligible for relief is terminated before the end of its term and the owner of reversion is not eligible for charitable relief.

If charitable relief is withdrawn, the local authority must be informed of the disqualifying event within 14 days. CIL becomes payable by the owner of the material interest immediately before the disqualifying event in question.

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