Part 13: General Schedule 12: Infrastructure Levy Part 10A, Section 204D: Liability Effect
Subsection (1) provides that, where IL would arise in respect of a development, a person may assume liability for IL. This assumption may be made before development commences (subsection (2)(a)), though this must be done in accordance with any regulations about the procedure for assuming liability (subsection (2)(b)). The person who assumes liability for IL will become liable once development commences (subsection (3) – and as to when development is ‘commenced’, see new section 204E(3)).
	Where liability is not assumed before development commences, or in other specified circumstances (such as the insolvency of a company that may have claimed IL liability), subsection (4) provides that IL regulations must provide for an owner or developer of land, or another specified person, to be liable for IL.
	Subsection (5) states that IL regulations may make provision about liability as it relates to the ways in which liability may be shared and/or changed over time. These include: liability being held jointly; liability as it relates to partnerships; assumptions of partial liability; apportionment of liability; withdrawal or cancellation of an assumption of liability; and transfers of or exemptions from liability.
	Subsection (6) requires that the amount of any liability be determined by reference to the charging schedule which is in place at the time when planning permission first permits development. As to when planning permission ‘first permits’ development, see new section 204E(6).
	The general assumption in new section 204D is that development liable to IL will be the subject of a grant of planning permission. Subsection (7) provides a power to deal with cases where development which requires planning permission is commenced without it. This may be used to prevent development commencing unlawfully specifically to avoid IL.
	Subsection (8) allows IL regulations to make provision for development to be liable, where it previously was exempt from IL or subject to a reduced rate, and where the description or purpose of the development subsequently changes.
Example (1): Specified circumstances in which an owner or developer will assume liability for IL
IL regulations can specify circumstances, such as the insolvency of a person who had assumed liability, or their withdrawal, in which an owner or developer of land, or other specified person will become liable for IL.
Example (2) IL can be calculated by reference to the charging schedule in place when planning permission first permits development
IL rates will be set out in the charging schedule and the developer will know the rate that applies at the point in time when development is first permitted. However, this rate can be applied to elements that are not known at the point development is first permitted, such as the final sales value of the development.