Building safety levy

The Building Safety Levy, is a tax on new residential buildings. The levy will be collected by local authorities, as local guardians of the building control process who have tax collection expertise. The income raised from the levy will contribute to fixing building safety defects across England, ensuring residents are safe.

On 10 July 2025 the Government laid its draft Building Safety Levy regulations before Parliament setting out how the levy will operate: Legislation - The Building Safety Levy (England) Regulations 2025. These draft regulations are subject subject to Parliamentary approval. The levy will come into operation on 1 October 2026.

  • From 1 October 2026 the levy will apply to all residential development in England, unless exempted. Please see the draft levy regulations and guidance:
  • The levy is charged on relevant building control applications and notices. Building control full plans applications, initial notices and higher-risk building (HRB) applications for works providing at least one dwelling or a bedspace in purpose-built student accommodation (PBSA) will have to include information for the purpose of the levy. If not included their application may be rejected (or in the case of initial notice must be rejected). More information for levy calculation will be provided at commencement notice stage.
  • Local authorities with building control responsibility will act as levy collecting authorities. Rates vary by local authority and whether the development is on previously developed land, please see the rates table GOV.UK - Building Safety Levy: Guidance - Section 2: Levy rates and calculations.
  • Affordable housing supported housing and any housing built by non-profit registered providers (and their wholly-owned subsidiaries) is exempt from the charge.
  • The levy charge is calculated by collecting authorities following provision of information and evidence at commencement notice stage. Payment must be made prior to the earlier of occupation and completion stage and must be made to the local authority acting as collecting authority (the local authority where the proposed buildings are located).
  • If a residential developer wishes to dispute the levy charge, a refund amount or the decision not to issue a refund, they can request a review by the collecting authority within 28 days. If a developer remains in dispute they can appeal the matter to the First Tier Tribunal.
  • Failure to pay the levy will mean the building control authority will withhold the completion certificate or reject the final certificate.

For more information on the levy please see the following publications by the UK Government.

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