Introduction of the Building Safety Levy
From 1st October 2026, central government are introducing the Building Safety Levy legislation, a tax on buildings or developments of 10 new dwellings or more and student accommodation with 30 or more bedspaces. Levy calculations are based on the new floorspace being created. The money generated from the Building Safety Levy will be used by central government to address safety defects on existing buildings.
The levy will be collected by local authorities. Information to enable determination of levy liability must be submitted at the time of submission of the Building Regulation application or Initial Notice, if using a Registered Building Control Approver, for new dwellings and student accommodation bedspaces, even if they are not above the threshold for levy charging conditions. Any levy due must be paid to the local authority, as the Levy Collection Authority, by developers before occupation or completion of levy liable new dwellings or student accommodation bedspaces.
Information on the legislation can be found here and more detailed guidance explaining exemptions and levy rates can be found here