Borough sets out plans for Docklands office levy

Developers of office schemes in the section of London's Docklands that is home to Canary Wharf would be required to pay a levy of £125 per square metre of floorspace under plans for a new planning tax unveiled by an east London Borough.

Docklands: proposed CIL rates for area published by London Borough of Tower Hamlets
Docklands: proposed CIL rates for area published by London Borough of Tower Hamlets
The London Borough of Tower Hamlets has published a Community Infrastructure Levy (CIL) preliminary draft charging schedule for a six week consultation ending on 2 January 2013.

The consultation document says that a CIL rate of £125 per square metre for office developments in North Docklands – home to Canary Wharf - and the City Fringe along the western edge of the borough "could be levied without adversely impacting on development viability".

But it proposes not to ask developers of office developments elsewhere in the borough, including in the South Docklands, to pay the levy as "at current rent levels, base appraisals indicate that no CIL could be levied on office development".

The preliminary draft charging schedule also proposes three charging zones for residential developments.

Under the proposals, residential developments in a zone covering the north bank of the Thames and a portion of the Docklands would face a charge of £200 per square metre.

A levy of £65 per square metre would apply to residential schemes in a zone covering the centre of the borough, while a charge of £35 per square metre would be levied on schemes in a zone along the western edge of the borough.

The preliminary draft charging schedule also proposes a rate of £425 per square metre for hotel and student housing developments across the entire borough.

Large retail developments with more than 280 square metres of floorspace would be charged at £200 per square metre across the entire borough, under the council’s plans.

A charge of £100 per square metre would apply to smaller retail developments in the North Docklands and City Fringe. A CIL charge would not be levied elsewhere in the borough.

Property firm BNP Paribas Real Estate produced a viability study for the London borough.

The preliminary draft charging schedule is available here.

jamie.carpenter@haymarket.com


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