The Building Safety Levy is a tax on new residential buildings. The levy will be collected by local authorities, and income raised from the levy will contribute to fixing building safety defects across England, ensuring residents are safe.
The Building Safety Levy (England) Regulations 2025, setting out how the Building Safety Levy will operate, have been approved by parliament and were made on 19 November 2025. Draft regulations, the Building Safety Levy (Amendment) (England) Regulations 2026, were laid before Parliament on 2 July 2026 and will make minor changes, subject to parliamentary approval.
The levy will come into operation on 1 October 2026.
How the levy will work
From 1 October 2026, the levy will apply to all residential development in England, unless exempted. Please see The Building Safety Levy (England) Regulations 2025 and the government’s Building Safety Levy: Guidance.
The levy is charged on relevant building control applications and notices. Building control full plans applications; initial notices; HRB applications for works providing at least one dwelling or a bed space in PBSA will have to include information for the purpose of the levy, otherwise their application may be rejected (or in the case of initial notice must be 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 at Building Safety Levy: Guidance – Section 2: Levy rates and calculations.
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 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).
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.