Community Infrastructure Levy will not be replaced

The Charity Tax Group had warned the government might scrap the levy earlier this year

Helen Donoghue, director, Charity Tax Group
Helen Donoghue, director, Charity Tax Group

The government has decided to retain the Community Infrastructure Levy, a tax on development land introduced by the Labour administration.

Earlier this year, the Charity Tax Group warned that the government might scrap the levy, which gives councils the option to raise money from anyone carrying out new development, and replace it with a 'universal tariff'.

After a long battle in the House of Lords, the sector won exemption from paying the levy on any development that exists for charitable purposes, but not on developments intended to make a commercial profit.

The group feared the sector would not be able to win a fresh exemption if a replacement system was introduced. However, the government decided earlier this month that the levy would be retained.

"It's good they've decided to stick with the CIL," said Helen Donoghue, director of the CTG. "We will not have to fight for another exemption, and the government has said a proportion of the money raised through the CIL will go to local neighbourhoods, which will benefit local charities."

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