Building Safety Levy

The Building Safety Levy (the levy) is a tax on new residential buildings. The levy will be collected by local authorities, and the income raised from the levy will contribute to fixing building safety defects across England, ensuring residents are safe.

The levy is a charge that developers must pay on certain building control applications / notices before completion of the building work or occupation of the building (whichever is earlier).

The Building Safety Levy (England) Regulations 2025 will come into operation on 1 October 2026. From this date, the levy will apply to all residential development in England.

The Building Safety Levy (England) Regulations 2025

The levy is charged on relevant building control full plans and building notice applications / initial notices / high rise building applications and works providing at least 1 dwelling or a bedspace in purpose-built student accommodation.

Applications will have to include information for the purpose of the levy, if levy information is not included, applications may be rejected (or in the case of initial notices, will be rejected).

Local authorities with building control responsibility will act as levy collecting authorities. Levy rates vary by local authority and whether the development is on previously developed land.

Building Safety Levy rates and calculations

The published rates for TWBC are:

• Previously Developed Land levy rate: £19.62 per square meter
• Non-Previously Developed Land levy rate: £39.25 per square metre

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 the commencement notice stage. Payment must be made prior to the earlier of occupation and completion stage and must be made to the collecting local authority (the local authority where the proposed buildings are located).

If a residential developer wishes to dispute either 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 further information on the levy please see the following links:
Levy guidance
Building safety levy process (with variations) – flow chart