Key takeaways
Levy in force 1 October 2026
The levy will apply where building control applications made on or after 1 October 2026 meet three charging conditions.
Application and exemptions require careful assessment
Whether the levy applies depends on the nature of the development, client status and exemptions.
Payment affects project completion
Unpaid levy may prevent issue of completion or final certificate.
The Building Safety Levy came into force on 1 October 2026.
It is a mandatory tax on new residential buildings which is payable by the named client and collected by local authorities. The levy applies in England only. The income from the levy will contribute to the cost of fixing building safety defects across England.
The rules around the operation, assessment and payment of the levy require careful consideration by the party who may be liable to pay the levy (i.e. the developer) on a project-by-project basis.
A brief summary of the key points are as follows:
The Building Safety Levy (England) Regulations 2025 sets out how the levy will operate together with The Building Safety Levy (Amendment) (England) Regulations 2026 which recently clarified how previously developed land is to be addressed and also refined the administration of the levy. Government guidance is available at Building Safety Levy: Guidance - Guidance - GOV.UK.
The levy applies to building control applications made on or after 1 October 2026 where three charging conditions are met. The charging conditions are (1) creation of residential floorspace; (2) be part of a major residential development; and (3) client is not exempt. Residential floorspace means an ordinary residential dwelling, purpose-built student accommodation (PBSA) or communal space for residents. The definition of ‘ordinary residential dwelling’ excludes social housing, supported housing and specific categories of exempt accommodation. A major residential development means resulting in at least 10 dwellings or at least 30 bedspaces in a PBSA.
The levy does not apply to existing applications submitted before 1 October 2026. It does not apply to a variation application or commencement notice given on or after 1 October 2026 if they relate to an application made before the commencement date. However, if an application is rejected for failing to meet the required standard and resubmitted on or after 1 October 2026 the levy will apply. Note that building control approval on new building work lapses automatically after three years in respect of any work which has not commenced.
The named client (usually the person for whom the works is carried out and identified in the application for building control approval) is responsible for paying the levy. This will often be a developer. The basis of the calculation of the levy is set out in the Regulations. There are rates per square metre for each local authority set out in Schedule 3 of the Regulations.
The levy is paid after works have commenced and before the earlier of completion of the works or occupation. If the levy is not paid the relevant building control authority must refuse to issue any completion certificate or final certificate in respect of the works.
For further information on the Building Safety Levy please contact our Construction team.
