Mayor of London's Community Infrastructure Levy
From 1 April 2012, the London Mayor applied a Community Infrastructure Levy (CIL) across Greater London to help fund the Crossrail development.
What is the charge?
In Havering, the CIL charge is £20 per square metre. Subject to indexation, the final sum payable may go up or down. This charge is non-negotiable and applies to certain planning applications approved after 1 April 2012.
We are responsible for collecting these monies on behalf of the Mayor.
How is it calculated?
The total CIL charge is based on a simple formula which relates to the size of the development. CIL applies to the net increase in gross internal floor area (GIA) after allowing for any demolition and is payable on most developments over 100sq.m or where a new dwelling is created.
Charges on floor space contained in existing and/or demolished buildings will usually be deducted from the total CIL liability of a development. This is to ensure that charging CIL does not discourage the redevelopment of sites.
However, to qualify for this discount the legislation requires the existing and/or demolished floor space to have been in continuous lawful use for at least six months during the three years preceding the day on which planning permission is granted. The onus will be on the applicant to demonstrate that this criteria has been met before qualifying for a CIL discount.
In order for us to be able to calculate the amount which is payable, information must be provided by applicants/agents about the GIA of buildings before and after development, when a planning application is first submitted.
To help make this information easier to supply, the Planning Portal has produced a Community Infrastructure Levy information requirements form which must be submitted with every application.
The completion of this form is required by our Local Validation Lists.
If this form does not accompany the planning application, it will be treated as being invalid.
What happens if my application is liable?
If a CIL payment applies, the Council will calculate the total amount payable and show this on a Liability Notice which will be issued along with the Decision Notice.
Responsibility to pay the levy runs with the ownership of the land, unless another party has assumed liability.
Liability may be transferred at any time before commencement of the development. In such cases the following form should be completed:
If the Council is unable to recover CIL from a party that has assumed liability, the liability defaults to the owners of the land.
Exemptions from the charge
Some types of development are exempt from the charge. These include:
- Buildings into which people do not normally go or only go in to perform maintenance or inspection
- Affordable housing in the form of Social Housing and Shared Ownership Housing
- Development by charities for charitable purposes
- A nil CIL rate applies to development providing medical or health services (unless the premises are attached to the residence of the consultant or practitioner) and development providing education as a school or college (under the Education Acts) or as a institution of higher education
- Householder extensions or annexes under 100 square metres
- Self-build housing projects
In order to benefit from the exemptions listed, you must apply for exemption before commencing your development. Failure to do so will forfeit your right to exemption. Exemption can be sought via a formal application, the forms for which are available on the Planning Portal website.
Payment of CIL
Once a Liability Notice has been issued, the person(s) or company liable to pay the charge must submit a Commencement Notice confirming the start date of the development. This should be received by the Council no later than a day before development is due to commence.
We will then issue Demand Notice reminding liable parties how much they owe and by when. The payment will be due in full at the end of 60 days after the development has started. In the event of non-payment, there are strong enforcement powers and penalties.
Relationship with the Mayor of London's Supplementary Planning Guidance: Crossrail Funding, Use of Planning Obligations and The Mayoral Community Infrastructure Levy March 2016
The Mayor has a planning obligations policy for the funding of Crossrail of £16 per square metre for retail development and £31 per square metre for office development within the borough of Havering within a 1km radius outwards from Romford, Gidea Park and Harold Wood railway stations.
The final amount payable is subject to indexation.
The per square metre rate is payable in respect of retail and office developments exceeding 500 square metres, with a net increase in floor area of the relevant use. For more information please see the Mayor's website.
The Mayor is able to charge both his CIL and require a Crossrail contribution in tandem but has indicated he will a) treat CIL payments as a credit towards any payment sought under the Crossrail S106 planning obligations policy, should the former be less than the latter and b) not to seek a S106 contribution at all should the obverse be the case.
Payment of the Crossrail contribution is secured via a Section 106 Legal Agreement. Payment of the CIL is secured as detailed above.