An ‘exceptional circumstances’ discretionary relief allows the local authority to offer relief from CIL where certain conditions are met. Such relief may be granted where:

• the local authority has made relief for exceptional circumstances available in its area
• there is an agreement under section 106 Town and Country Planning Act 1990 (a ‘section 106 agreement’), which has been entered into in respect of the planning permission which permits the development
• the local authority considers that the cost of complying with the Section 106 agreement is greater than the CIL liability of the development and
• the local authority considers that to require payment of CIL would ‘have an unacceptable impact on the economic viability’ of the development.

The local authority must also be satisfied that to grant relief would not be a notifiable State Aid requiring approval of the European Commission.

There are detailed procedural requirements that must be satisfied in order to make a valid claim for this relief. There are also clawback provisions.