Part 13: General Schedule 12: Infrastructure Levy Part 10A, Section 204P: Use of IL in an area to which section 204O(1) duty does not relate Effect
New section 204O (see above) allows IL regulations to require that charging authorities pass on IL receipts (whether in part or whole) to another body. This new section 204P applies where IL regulations provide for a duty under new section 204O in respect of one or more areas, but there are also one or more areas to which that new duty does not apply ("the uncovered area/s").
	In such a case, the IL regulations must require that the IL received in respect of development in the uncovered area must be spent on:
Supporting development by funding the provision, improvement, replacement, operation or maintenance of infrastructure (i.e. equivalent to new section 204N(1)); or
Supporting development of the uncovered area or any part of that area by funding anything else (for example, non-infrastructure items) that is concerned with addressing demands that development places on an area (i.e. equivalent wider spend flexibility like those under new section 204O(2)).
	Subsection (3) allows IL regulations to set out circumstances in which IL receipts may be used for purposes that are not specified in subsection (2). This is equivalent to the provision made in new section 204N(5) about spending of IL monies generally, and the equivalent provision in new section 204O(3).
Example (1): Passing a proportion of receipts in areas with no parish council
This section could allow charging authorities to allow a proportion of their IL receipts to be spent on local priorities other than infrastructure, in areas where there is no parish council (as is the case for CIL under regulation 59F of the Community Infrastructure Levy Regulations 2010).