25.02.2025

High Court rules on time-limits in CIL enforcement cases.

Last Friday, the High Court decided a potentially rather important CIL enforcement case, which deserves some attention.

The case is  Jones v Shropshire Council [2025] EWHC 365 (Admin). It centres on a single question: Can a CIL Charging Authority issue a CIL Stop Notice to secure payment on an unpaid liability even if a claim for a liability order to enforce payment through the courts would be time-barred?

Or, to ask the question in the same way as the actual litigation, does the six-year time limit contained in 9(1) of the Limitation Act 1980 apply to the issuing of CIL Stop Notices?

The Court answered these questions as follows:

1. Yes, a CIL Stop Notice can be issued even if a claim for a liability order to enforce payment of the same unpaid liability through the courts would be time-barred; and 
2. No, the six-year time limit contained in 9(1) of the Limitation Act 1980 does not apply to the issuing of CIL Stop Notice.

The facts of the case can be dealt with relatively briefly and by way of bullet points:

• The Claimant had originally intended to build a home for himself claim self-build relief for it. He successfully applied for the relief. Unfortunately, he didn't serve a valid commencement notice on the Council, but sent an email instead. As this was 2015, he lost his entitlement to the self-build relief as a result. The Council served a liability notice and demand notice for the full CIL liability due on 13 August 2015.
•  On 27 January 2017, the Defendant issued a fresh demand notice so as to enable the Claimant to appeal, under regulations 117 and 118 of the CIL Regulations against the deemed commencement date and the imposition of the surcharge. 
• On 8 August 2017 those appeals were allowed. However, the High Court subsequently quashed the inspector's decision*
• On 25 February 2021, the Defendant applied to Telford Magistrates Court for a liability order to be made against the Claimant under regulation 97 of the CIL Regulations.
• On 1 July 2021 the district judge made a liability order. The Appellant appealed to this court by way of case stated. On 5 April 2022  the Claimant's appeal was allowed**
• From this point the Council was time-barred from seeking a fresh liability order as a result of regulation 97(3) of the CIL Regulations. The Claimant hadn't, however, finished building his house.
• In May and August 2022, the Council served two CIL Warning Notices informing the Claimant that a CIL Stop Notice could be served, preventing completion of the development, if the outstanding CIL liability was not paid.
• On 23 September 2022, the Council served the CIL Stop Notice on the Claimant. 

The Claimant challenged the CIL Stop Notice on the basis that it was time barred under s.9(1) of the Limitation Act 1980, which states:

"9(1) An action to recover any sum recoverable by virtue of any enactment shall not be brought after the expiration of six years from the date on which the cause of action accrued".

The Court held, as a matter of statutory interpretation, it was not. Stating, in paragraph 71 of the judgment:

"For the reasons I have given, I conclude that the time limit enacted under section 9(1) of the 1980 Act does not apply to the issue by a collecting authority of a CIL stop notice in the exercise of the powers conferred by regulation 90 of the CIL Regulations. The issue of a CIL stop notice is not an "action" to recover a sum recoverable by virtue of any enactment, within the meaning of section 9(1) of the 1980 Act. The Defendant's administrative action in issuing the Notice on 23 September 2022 was not time barred by virtue of section 9 of the 1980 Act."

The case is interesting for two main reasons. Firstly, it confirms that there is no time-limit on when a CIL Stop Notice can be served. Secondly, it reminds us that there IS a time limit on when a charging authority can seek a liability order from the magistrates court.

Regulation 97(3) of the CIL Regulations states that:

"Section 127(1) of the Magistrates' Courts Act 1980 (limitation of time) does not apply to such an application; but no application may be instituted in respect of an outstanding amount after the period of six years beginning with the day that amount became due".

Obtaining a liability order is a key precursor step in many of a charging authority's CIL enforcement powers. One needs to be obtained before a charging authority can:

• Apply for a charging order over property (regulation 103).
• Recover the unpaid amount by taking control of goods (regulation 97)
• Recover the unpaid amount by distress (regulation 98); or
• In particularly rare circumstances, apply for a warrant of commitment (regulation 100). 

As such, once a charging authority is out of time to apply for a liability order, these enforcement routes are no longer available.

The other two main enforcement routes available to charging authorities also involve court proceedings, namely:

• Pursuing the unpaid CIL liability as a debt claim; and 
• Enforcing CIL as a local land charge

Both of these routes involve court proceedings and are almost certain to fall within s.9(1) of the Limitation Act 1980.

This leaves CIL Stop Notices as the most attractive option/ greatest risk*** for older outstanding CIL liabilities…. Providing, of course, that the development hasn't been completed in the meantime.

 

 

 

 

*The judgment gives this citation for the decision: R (Shropshire Council) v Secretary of State for Communities and Local Government [2019] EWHC 16 (Admin). 

**The judgment gives this citation for the decision: Lee Jones v Shropshire Council [2022] EWHC 1103 (Admin). 

*** depending on which side of the issue you are on.

For the reasons I have given, I conclude that the time limit enacted under section 9(1) of the 1980 Act does not apply to the issue by a collecting authority of a CIL stop notice in the exercise of the powers conferred by regulation 90 of the CIL Regulations. The issue of a CIL stop notice is not an "action" to recover a sum recoverable by virtue of any enactment, within the meaning of section 9(1) of the 1980 Act. The Defendant's administrative action in issuing the Notice on 23 September 2022 was not time barred by virtue of section 9 of the 1980 Act.”