CIL vs
Section 106

CIL is a standardised infrastructure levy based on an adopted charging schedule, while Section 106 is a site-specific legal obligation used to make development acceptable in planning terms.

Calculation at a glance

1

CIL is schedule-based.

2

Section 106 is site-specific.

3

Both can apply to the same development.

4

Neither is the same as the planning application fee.

5

Section 106 obligations must meet the statutory tests.

Direct answer

CIL is a non-negotiable charge based on an adopted charging schedule, payable to the local planning authority to fund infrastructure. Section 106 is a negotiated legal agreement securing site-specific obligations or affordable housing to make a scheme acceptable. Both can apply, but each has different purposes, calculations and legal tests.

CIL vs Section 106: key differences

AspectCIL (Community Infrastructure Levy)Section 106 Agreement
What it isA standardised infrastructure levy.A site-specific legal obligation.
BasisSet in an adopted charging schedule.Negotiated for the specific development.
Main purposeRaise funding for strategic infrastructure.Make the development acceptable in planning terms.
How it is calculatedBased on chargeable floorspace and the applicable rate.Based on site-specific impacts and planning considerations.
Legal documentCIL demand notice and payment.Section 106 legal agreement (registered on title).
Can it apply with the other?Yes, both can apply.Yes, both can apply.
Same as planning application fee?No.No.

What CIL is

The Community Infrastructure Levy (CIL) is a charge levied on most new development. It is set out in an adopted charging schedule and is calculated using the chargeable floorspace and the relevant CIL rate.

What Section 106 is

A Section 106 agreement is a legal agreement between the developer and the local planning authority. It secures planning obligations to mitigate site-specific impacts or provide necessary infrastructure or benefits.

Can both apply?

Yes. CIL and Section 106 can both apply to the same development. CIL covers strategic infrastructure funding, while Section 106 deals with site-specific mitigation and planning obligations.

The three tests

Section 106 obligation must meet the statutory tests set out in the Community infrastructure Levy Regulations.

01

Necessary

The obligation is necessary to make the development acceptable in planning terms.

02

Directly related

The obligation is directly related to the development.

03

Fairly and reasonably related in scale and kind

The obligation is fairly and reasonably related in scale and kind to the development.

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Why it matters for the client conversation

A simple way to explain the difference:

Planning application fee

A fixed fee paid to register and validate the planning application. It covers the authority's cost of processing the application.

CIL

A charge set by the authority to fund infrastructure across the area. Calculated using the charging schedule and floorspace.

Section 106

A site-specific agreement to address impacts and secure benefits, such as affordable housing, open space or off-site works.

Common misunderstandings

Planning professional checklist

How UKPG helps

Clearer submission records

Record CIL liability and Section 106 status clearly to avoid delays and queries.

Direct links to guidance

Access up-to-date CIL and Section 106 guidance and LPA policies in one place.

Reduced client queries

A site-specific explanation and credible resources to manage expectations early.

Frequently asked questions

Can a development have both CIL and Section 106?

Can a development have both CIL and Section 106?

Is Section 106 the same as a planning application fee?

Is CIL negotiable?

What are the Section 106 tests?

Who collects CIL and enforces Section 106 obligations?

Can a development have both CIL and Section 106?

Can a development have both CIL and Section 106?

Is Section 106 the same as a planning application fee?

Is CIL negotiable?

What are the Section 106 tests?

Who collects CIL and enforces Section 106 obligations?

Can a development have both CIL and Section 106?

Can a development have both CIL and Section 106?

Is Section 106 the same as a planning application fee?

Is CIL negotiable?

What are the Section 106 tests?

Who collects CIL and enforces Section 106 obligations?

Can a development have both CIL and Section 106?

Can a development have both CIL and Section 106?

Is Section 106 the same as a planning application fee?

Is CIL negotiable?

What are the Section 106 tests?

Who collects CIL and enforces Section 106 obligations?

Can a development have both CIL and Section 106?

Can a development have both CIL and Section 106?

Is Section 106 the same as a planning application fee?

Is CIL negotiable?

What are the Section 106 tests?

Who collects CIL and enforces Section 106 obligations?

Disclaimer

This page provides general information to help explain the difference between CIL and Section 106. UK Planning Gateway is an information and application submission platform and does not provide legal advice or Section 106 negotiation advice. Always seek advice from a qualified planning professional or solicitor for advice on your specific project.

Community Infrastructure Levy Guide

CIL by Local Planning Authority

When is CIL Payable?

Planning Submission Resources