How the levy works
The Building Safety Levy is a tax on new residential buildings. The income raised from the levy will contribute to fixing building safety defects across England, ensuring residents are safe.
From 1 October 2026, the levy applies to all residential development in England, unless exempted. You’ll find Building Safety Levy guidance on GOV.UK.
The levy is charged on relevant building control applications and notices. The following will need to include information for the purpose of the levy:
- building control full plans applications
- initial notices
- Higher risk building (HRB) applications for works providing at least one dwelling or a bedspace in purpose-built student accommodation (PBSA)
Failure to provide the relevant information may result in your application being rejected.
Further information for levy calculation will be provided at commencement notice stage.
The levy rates
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 on GOV.UK.
Exemptions
Affordable housing, supported housing and any housing built by non-profit registered providers (and their wholly-owned subsidiaries) is exempt from the charge.
How the levy charge will be collected
The levy charge is calculated by collecting authorities following provision of information and evidence at commencement notice stage. Payment must be made before occupation and completion and must be made to the local authority acting as collecting authority (the local authority where the proposed buildings are located).
Appeals and disputes
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.
If you don't pay the levy
Failure to pay the levy will mean the building control authority will withhold the completion certificate or reject the final certificate.
Regulations
The Building Safety Levy (England) Regulations 2025, set out how the Building Safety Levy will operate.