Landlord avoids £255k Community Infrastructure Levy charge after successful appeal

The case centred around a large property in Westminster that had been used as a House in Multiple Occupation (HMO).

Law firm Mischon de Reya said its client, which owns the building, obtained planning permission in 2021 to regularise the use of the property as a HMO, and a further planning permission was granted in 2025 to vary some of the conditions attached to the original permission.

The council sent the property owner a bill for CIL of almost £255,000 following the 2025 application.

According to Mishcon de Reya, the council "argued that, even though it had never formally issued a CIL notice when the original 2021 permission was granted, it could effectively work backwards, calculate what it would have charged at the time, and use that figure as the starting point for its calculation on the 2025 permission".

At appeal to the Valuation Office, it was argued on behalf of the appellant that the rules only allow this type of calculation to be used where a formal CIL notice was issued for the original permission

Mishcon de Reya said: "No such notice was ever issued here — a fact the council itself admitted....

"We also pointed out that the 2025 permission did not involve any increase in the size of the building whatsoever, which is a basic requirement before CIL can be charged on this type of permission,” it added.

The Valuation Office ultimately determined that the appellant did not need to pay a CIL.

It found that where no liability notice had been issued for the original permission, the amended planning permission calculation method simply cannot be used, as there is no original notice to feed into the formula.

Westminster City Council has been approached for comment.

Adam Carey