Part 13: General Schedule 12: Infrastructure Levy Part 10A, Section 204R: Collection Effect
Subsection (1) provides that IL regulations must include provisions about the collection of IL. Subsections (2)-(4) and (7)-(9) provide instances of how that power may be exercised including making provision about-
payment on account or by instalment, which would allow for payments to be made prior to the completion of a development or a phase of development (subsection (2))
the repayment of IL, with or without interest, in the event of an overpayment (subsection (3))
payment of IL by in-kind payment rather than in money, for instance through the delivery of infrastructure (including affordable housing) or through making land available (subsection (4))
allowing a charging authority to collect funds on behalf of another charging authority (subsection (7))
making provision that corresponds, or applies (with or without modification) to enactments relating to the collection of a tax, to enable alignment between the approach taken to the Levy and the approach taken in the wider tax system (subsection (8)); and
the source of payments in respect of Crown interests (subsection (9)).
	Subsection (5) provides that IL regulations must include provision permitting charging authorities to require payment in the form of provision of affordable housing on the development site, but only if affordable housing is considered to be ‘infrastructure’ for the purposes of IL application as set out in s.204N(3) (as noted above, s.204N(4) provides a power for IL regulations to amend s.204N(3)). Subsection (6) defines ‘development site’ for this purpose as the site on which the development in respect of which the relevant IL is charged takes place.
Example (1): Payment in-kind
Provision under subsection (5) permits charging authorities to require the delivery of onsite affordable housing as an in-kind payment of IL. It is intended that a substantial portion of the value captured through IL will be delivered in this way. Where it is appropriate for IL liability to be paid by in-kind contributions towards infrastructure, this will be set out through regulations (including through provision made under 204Z) as an ‘in-kind routeway’. Development deemed appropriate for this routeway would be able to make in-kind payments of infrastructure towards their IL liability.
Example (2): Payment by instalment or on account
It is intended that IL should be calculated on the basis of the final development value (under provision that will be made under new section 204G). Under this approach, the final levy liability would not be known until the completion of the development (or a phase of the development). Payment by instalment or on account would allow for earlier payments. This could be used to allow the charging authority to require payments prior to the completion/occupation of the phase/development. This would mean that payment could be enforced (see new section 204S) at a point when the developer was in control of the site, rather than at a point when it has been sold on, for instance to a homeowner. Early payment may also be used to support the early delivery of infrastructure. However, as this would also increase costs for developers, and may risk overpayments, restrictions may be placed on the use of such an approach.
Example (3): Crown interests
For example, under section 8 of the Duchy of Cornwall Management Act 1863 certain capital receipts received by the Duchy of Cornwall may only be spent for the purposes specified there. Subsection (7) allows IL regulations to provide that IL which is payable by the Duchy where development takes place on its land, may be paid out of these monies.