BCIS, on behalf of RICS, with the support of the Ministry of Housing Communities and Local Government (MHCLG) (briefly the Department for Levelling Up, Housing and Communities), developed the annual index for the purposes of keeping the levy rate responsive to market conditions.
The index is therefore based on the BCIS All-in Tender Price Index (BCIS TPI). Details of the calculation of the RICS CIL index are given below.
The index is published on the same base as the BCIS TPI used in the previous regulations. The 2021 figure was based on building prices in 2020 (see details of calculation) and applied from 1st January 2021. It can therefore be used to update schedules set up under the previous regulations and as the base for new schedules.
The index is published on the fourth Monday in October each year and, once published, will not normally be subject to revision. Should RICS feel it necessary to amend a published index, this will only be done with the agreement of MHCLG and details will be provided on this page.
The RICS CIL index is prepared, maintained and published by BCIS.
Application of the index
The index should be applied as set out in the ‘Community Infrastructure Levy (Amendment) (England) (No.2) Regulations 2019’ and any guidance thereto issued by MHCLG (now the Department for Levelling Up, Housing and Communities).
From 1 January 2020 local authorities in areas which charge the levy should use the figure for 1 November for the preceding calendar year.
See the MHCLG guidance here.
Calculation method
The index for the year in which it applies is calculated in the October of the previous year.
The index is calculated as the arithmetic mean of the four quarters of the BCIS TPI prior to the 4th quarter each year, as calculated by BCIS in October prior to the year applicable. The annual index will therefore be the mean of the 4th quarter of the previous year and the first three quarters of the year in which it is calculated (one year before the index year), rounded to the nearest whole number.
To keep up to date with the latest industry news and insights from BCIS, register for our newsletter here.