Mayoral Community Infrastructure Levy

The Mayor’s current Community Infrastructure Levy (MCIL1) was introduced in 2012 to help finance Crossrail, the major new rail link that will connect central London to Reading and Heathrow in the West and Shenfield and Abbey Wood in the East.

In February 2019 the Mayor adopted a new charging schedule (MCIL2).  MCIL2 will come into effect on 1 April 2019 and will supersede MCIL1 and the associated Crossrail Funding SPG (applicable in central London, the northern part of the Isle of Dogs and within 1km of a Crossrail station for the rest of London). MCIL2 will be used to fund Crossrail 1 (the Elizabeth Line) and Crossrail 2.

Prior to adoption, the MCIL2 charging schedule went through of two rounds of public consultation and an independent Examination in Public (EiP). Further details of the EiP including the Examiner’s report are provided on the MCIL2 EiP webpage.

How MCIL Works

MCIL is calculated on the net additional floorspace, measured in square metres of Gross Internal Area. Note that there are exceptions - for example floorspace for medical or education purposes have a nil charge, and relief and exemptions from CIL are also available for some types of development such as affordable housing, self-build housing and developments by charitable organisations for charitable purposes.

Local planning authorities in London are responsible for calculating the MCIL charge and collecting MCIL payments on behalf of the Mayor. The charge is calculated once a planning application is submitted to the local planning authority.   MCIL is payable when work on the new development commences and for major developments with a large CIL liability, the payment can be made in instalments (see instalments policy below).

MCIL1 set a standard charge for all development across London and in March 2016 the GLA published the Crossrail Funding SPG which explained how MCIL1 and S.106 Crossrail charges work together.

The SPG can be found here:

Crossrail Funding SPG updated March 2016

In contrast, MCIL2 sets a general charge for all development across London as well as specific charges for office, retail and hotel development in Central London and the Isle of Dogs.

MCIL Charging Rates

The MCIL1 and MCIL2 charging rates are set out below in Tables 1-3.  Please note that the below MCIL rates are indexed in accordance with the Royal Institute of Chartered Surveyors ‘All in Tender Price Index’ and therefore they will alter depending on the year planning permission is granted. For further information on the charging schedules please view the documents here:

MCIL1 Charging schedule

MCIL2 Charging schedule 

MCIL1

The MCIL1 charging rates are set out in Table 1 below.  The MCIL1 rates apply to planning permissions granted between 1 April 2012 and the 31 March 2019, with the exception of some phased planning permissions that may be liable under MCIL2. 

Table 1: MCIL1 charging rates

Zone

London boroughs

Rates

(£ per sq. m.)

1

Camden, City of London, City of Westminster, Hammersmith and Fulham, Islington, Kensington and Chelsea, Richmond-upon-Thames, Wandsworth

£50

2

Barnet, Brent, Bromley, Ealing, Greenwich, Hackney, Haringey, Harrow, Hillingdon, Hounslow, Kingston upon Thames, Lambeth, Lewisham, Merton, Redbridge, Southwark, Tower Hamlets

£35

3

Barking and Dagenham, Bexley, Croydon, Enfield, Havering, Newham, Sutton, Waltham Forest

£20

Use

Rate

(£ per sq.m.)

Development used wholly or mainly for the provision of any medical or health services except the use of premises attached to the residence of the consultant or practitioner

Nil

Development used wholly or mainly for the provision of education as a school or college under the Education Acts or as an institution of higher education

Nil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MCIL2

The MCIL2 charging rates are set out in Tables 2 and 3 below.  The MCIL2 rates will apply to all planning permissions granted from 1 April 2019 and may also apply to some phased planning permissions granted before the 1 April 2019.

Table 2: MCIL2 charging rates for all development in London1

Zone

London boroughs

Rates from 1 April 2019

(£ per sq. m.)

1

Camden, City of London, City of Westminster, Hammersmith and Fulham, Islington, Kensington and Chelsea, Richmond-upon-Thames, Wandsworth

£80

2

Barnet, Brent, Bromley, Ealing, Enfield, Hackney,  Haringey,  Harrow, Hillingdon, Hounslow, Kingston upon Thames, Lambeth, Lewisham, Merton, Redbridge, Southwark, Tower Hamlets, Waltham Forest, London Legacy Development Corporation (LLDC), Old Oak and Park Royal Development Corporation (OPDC)

£60

3

Barking and Dagenham, Bexley, Croydon, Greenwich, Havering, Newham, Sutton

£25

Use

Rate

(£ per sq.m.)

Development used wholly or mainly for the provision of any medical or health services except the use of premises attached to the residence of the consultant or practitioner

Nil

Development used wholly or mainly for the provision of education as a school or college under the Education Acts or as an institution of higher education

Nil

1 Except for the rates for office, retail and hotel in Central London and the Isle of Dogs (see Table 2), and for health and education in all of Greater London (see Table 3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 3: MCIL2 charging rates for office, retail and hotel in Central London and Isle of Dogs2

Land use

MCIL2 rate from 1 April 2019

(£ per sq m)

Office

185

 

Retail

165

 

Hotel

140

 

2 Office is defined as any office use including offices that fall within Class B1 Business of the Town and Country Planning (Use Classes) Order 1987 as amended, or any other order altering, amending or varying that Order. Uses that are analogous to offices which are sui generis, such as embassies, will be treated as offices.

 

Retail is defined as all uses that fall within Classes A1, A2, A3, A4 and A5 of the Town and Country Planning (Use Classes) Order 1987 as amended, or any other order altering, amending or varying that Order, and related sui generis uses including retail warehouse clubs, car showrooms, launderette.

 

Hotel means any hotel use including apart-hotels uses that fall within Class C1 Hotel of the Town and Country Planning (Use Classes) Order 1987 as amended.

 

 

MCIL Mapping Tool

To help local planning authorities and developers, we have developed a searchable online map showing the MCIL2 charge rates across London.

The MCIL2 maps and shape files are also available in the GLA Datastore.

Regulation 123 List

The money raised by MCIL is required by law to pay for strategic transport infrastructure needed to support London’s development.

To date, the money raised through MCIL1 has been applied to Crossrail 1 and the Mayor proposes to apply the money raised through MCIL2 to help fund Crossrail 1 and 2.  The Crossrail projects are strategic priorities to support the growth and development of Greater London and lie at the heart of the London Plan and Mayor’s Transport Strategy.

Interaction with other Planning Obligations

MCIL is used specifically to fund Crossrail. It is separate to Borough Community Infrastructure Levies (CILs) which are set and implemented by each authority to raise funds for local infrastructure projects.

Developers may also be required to enter into a section 106 agreement, under which mitigation is sought to offset negative impacts caused by the development. Typical examples include the provision of affordable housing and local transport improvements. More information is available on the Government's Planning Practice Guidance site.

MCIL Instalments Policy

The Mayor introduced a first CIL instalments policy, which was effective from 1 April 2013. From the 1st January 2018, a new instalments policy superseded the first instalments policy.

The new instalments policy lowered the threshold from which instalments can be applied from £500,000 to £100,000. The instalments policy is set out below:

 Mayoral CIL instalments policy

Amount of CIL liability

Number of instalment payments

Amount or proportion of CIL payable in any instalment/time at which payments are due

 

£100,000 or less

no instalments

total amount payable within 60 days of commencement of development

 

£100,001 or more

two

- the greater of £100,000 or half the value of the total amount payable within 60 days of commencement of development

- the remainder within 240 days of commencement of development

CIL Enforcement Procedures

The Community Infrastructure Levy is applied to most forms of development. It would be unfair for some to pay the CIL while others, who should pay, do not.

The CIL Regulations 2010 (as amended) set out the financial and penal consequences of trying to avoid paying the CIL.

A summary of the CIL enforcement procedures can be found below.

CIL Enforcement Procedure 

Reviewing MCIL

In adopting MCIL the Mayor agreed to review it every two years. Since adoption of MCIL, two reviews have taken place in December 2014 and February 2017. These documents can be viewed here:

MCIL Collected to Date

The amount of MCIL money collected by each borough on behalf of the Mayor is recorded in line with Regulation 62 of the Community Infrastructure Levy Regulations 2010 (as amended).

The amount of money transferred to Transport for London (TfL) by each collecting authority is shown in the document below. The total sums shown in the table are after administrative fees have been applied by the collecting authorities.

MCIL Annual receipt update 2012/13 - 2017/18