Section 1: Introduction

This section outlines how the levy works and sets out definitions used in the rest of this guidance. It also explains how exemptions from the levy work and should be read by those who need to receive an exemption from the levy.

Chapter 1: Background

1.1 What is the Building Safety Levy?

The Building Safety Levy, (‘the levy’) is a tax on new residential buildings. The levy will be collected by local authorities, as local guardians of the building control process who have tax collection expertise. The income raised from the levy will contribute to fixing building safety defects across England, ensuring residents are safe.

The success of the levy will rely on Government, local authorities, and industry working in partnership. This guidance explains how the levy will work and what those paying and collecting the levy will need to do.

Draft regulations (called The Building Safety Levy (England) Regulations 2025) setting out how the Building Safety Levy will operate were laid in Parliament on 10 July 2025; these regulations remain subject to Parliamentary approval. This guidance should be read alongside the regulations. The levy will come into operation on 1 October 2026.

1.2 Overview of the Building Safety Levy

The Building Safety 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 levy is to be charged on certain applications for works that result in new dwellings and/or new bedspaces in purpose-built student accommodation (PBSA) and change of use to residential purposes. The government has set the levy rates for each local authority area in legislation. The rates have been weighted using average house prices in local authority areas, so that areas with the highest average house prices have the highest levy rates, and those with the lowest average house prices have the lowest levy rates. The amount payable varies depending on the building’s size, use and location.

The levy rates are set per square metre and the charge is calculated on the floorspace of the development. There are exemptions from the levy for certain uses of buildings (see regulations 7 and 8, and Schedules 1 and 2), and a discounted rate for developments on land that meets the definition of previously developed as set out in the regulations.

Central government has designated local authorities as the collecting authorities for the levy. Local authority has the definition in section 126 of the Building Act 1984 (for a full list of collecting authorities see Schedule 3). Collecting authorities are designated in regulation 4. Building control approval applications with full plans made to the local authority building control team or the Building Safety Regulator, and building control approval applications made to the Building Safety Regulator, as well as initial notices submitted by Registered Building Control Approvers, (all of which are referred to as ‘applications for building control approval’ (see chapter 2.2) may need to provide levy information. The local authority in which the development is situated has the legal responsibility for levy administration, even where there is a shared building control service across several areas. Local authorities will transfer levy revenues (net of administration costs) to central government. Levy revenue must be spent on building safety.

The Building Safety Levy applies to England only.

1.3 Who this guidance is for

This guidance is for anyone who:

  • is potentially liable to pay, or receive an exemption from paying the Building Safety Levy, or
  • is involved in the building control process, including private sector Registered Building Control Approvers (RBCAs), and the Building Safety Regulator, or
  • is involved with collecting the levy on behalf of central government.

If new residential floorspace is created by constructing new buildings or extending or changing the use of an existing building, or through any other scenario outlined in regulation 15(1)(a), the levy may be charged.

The guidance also explains the regulations specifying who is exempt from paying the levy, and how they can obtain confirmation of this from the local authority. The guidance is split into sections to help readers find the most relevant information.

For queries concerning this guidance please contact buildingsafetylevy@communities.gov.uk

Chapter 2: Definitions

2.1 References to legislation

This guidance refers to the following legislation in the terms set out below:

Where a regulation reference is given without reference to the legislation, it is a reference to the Levy Regulations (for example, “regulation 5” should be read as “regulation 5 of the Levy Regulations”, unless otherwise stated).

References to the 2010 Regulations, HRB Regulations and RBCA Regulations should be read as reference to those regulations as amended by the Levy Regulations, which, at the date of publication of this guidance, remain subject to Parliamentary approval.

2.2 Definitions used in this guidance

Some terms used in this guidance are defined as follows:

a) Applications for building control approval –

a. applications for building control approval with full plans made to the local authority building control or the Building Safety Regulator,

b. building control approval applications submitted to the Building Safety Regulator (see the definition of “higher-risk building applications” in the Levy Regulations), and

c. initial notices.

b) Chargeable development – a residential or mixed use development where at least some of the proposed floorspace attracts a levy charge. See regulation 15 and chapter 3which explains the conditions for charging.

c) Chargeable dwellings – new dwellings which attract a levy charge. See chapter 3 which explains which types of dwellings are chargeable and which exempt.

d) Chargeable floorspace – residential floorspace which is subject to the levy charge.

e) Client – the client is the person for whom the works are carried out and the client will be identified in the application for building control approval. How the client is defined and how the identity of the client might change is discussed further at chapter 3.1.

f) Collecting authority – local authorities who have statutory building control responsibilities (regulation 4). Chapter 3.6 discusses collecting authorities further.

g) Commencement Stage – the stage that works are regarded as commenced in accordance with:

a. Regulation 46A of the 2010 Regulations, and

b. Regulation 16 of the RBCA Regulations.

h) Exempt dwellings – new dwellings which do not attract a levy charge. See regulation 8 and chapter 3.5 which explains which types of dwellings are chargeable and which exempt.

i) Financial quarter – the period of 3 months ending with the last day of March, June, September or December (see regulation 2).

j) Initial notices – references to initial notices in this guidance refers to initial notices (in the form prescribed by Form 1 to Schedule 1 to the RBCA Regulations) and combined initial notice and plans certificates (in the form prescribed by Form 4 to Schedule 1 to the RBCA Regulations).

k) Levy charge – the amount of levy to be paid for the application for building control approval (see “levy liability amount” in regulation 37(3)). The levy charge/ levy liability amount will be stated in the levy liability notice or revised levy liability notice.

l) Levy liability notice – a notice given by a collecting authority which outlines the levy charge to be paid (see regulation 39 as discussed in chapter 15.11).

m) Levy liability statement – a statement given by the client when notifying the building control authority or RBCA that works are complete or when applying for a completion certificate. The statement will confirm that the levy charge has been paid in full or that a notice of no charge was issued for the application. See regulation 16(4A)(f) of the 2010 Regulations, regulation 18(1)(f) of the RBCA Regulations and regulation 40(1)(g) and 45(2)(j) of the HRB Regulations.

n) Levy update notice – a way of notifying the collecting authority of certain changes to a development which affect levy liability (see regulation 52 as discussed in chapters 10 and 16).

o) LPA – local planning authority.

p) MHCLG – the Ministry for Housing Communities and Local Government.

q) Notice of no charge – a notice given by a collecting authority when there is no levy charge to be paid (see regulation 40 as discussed in chapter 15).

r) Ordinary residential dwelling – dwellings are ordinary residential dwellings if they are not social housing, supported housing, or exempt accommodation, if and so far as the accommodation would otherwise be a dwelling (see regulation 8).

s) PBSA – purpose-built student accommodation (see regulation 9).

t) Permitted development rights – a national grant of planning permission which allow certain building works and changes of use to be carried out without having to make a planning application. For more information, see this guidance and the Town and Country Planning (General Permitted Development) (England) Order 2015, as amended.

u) RBCA – registered building control approver.

v) Residential floorspace – floorspace (in square metres) of certain dwellings, PBSA and certain communal areas, as defined in regulation 10. Chapter 4.3 discusses when such floorspace is chargeable.

w) Revised levy determination notice – this is a notice given by a collecting authority following receipt of a levy update notice (or following other circumstances set out in regulation 54 and 66) confirming the levy charge to be paid or that no levy charge is to be paid (see regulation 67(6) as discussed in chapter 16.5.

x) S91ZB application – an application for building control approval with full plans which is submitted to the Building Safety Regulator because it is subject to a regulator’s notice (under regulations 19A – 19E HRB Regulations).

y) Variation applications –

a. a further application for building control approval with full plans,

b. an amendment notice, or

c. a change control application.

Variation applications are defined in regulation 41.

Chapter 3: Paying the levy and charging conditions

3.1 Who should pay the Building Safety Levy

{#:who-pay-building-levy}

The “client” for an application or initial notice will be responsible for paying the Building Safety Levy where it is due (see Schedule 4).

The “client” is defined in the 2010 Regulations. The client must be identified in the application for building control approval.

The “client” for a building control application with full plans is the person identified in the application as per regulation 14 (1)  of the 2010 Regulations (see Schedule 4, paragraph 1).

The “client” for an initial notice is the person identified in the initial notice (see Schedule 4, paragraph 2).

The “client” for a HRB application is the person named under the HRB Regulations and varies depending on the kind of HRB application made (see Schedule 4, paragraph 3).

Schedule 4 sets out how the “client” may be changed and notified to the relevant building control authority or collecting authority.

3.2 Exempt persons

Building work of any kind is exempt if it is built by an ‘exempt person’ (see regulation 15). An exempt person (defined in regulation 13) is a non-profit registered provider of social housing, such as a housing association, or a wholly owned subsidiary of a non-profit registered provider of social housing. This means that anything developed by these organisations does not incur a levy charge, even if the kind of development would normally be charged were it built by someone else.

Joint ventures are not ‘exempt persons’ unless each party in the joint venture is itself exempt, that is, a non-profit registered provider of social housing, or a wholly owned subsidiary of a non-profit registered provider of social housing.

3.3 Implementation

The Building Safety Levy will come into effect on 1 October 2026. Anyone submitting an application for building control approval relating to the provision of one or more dwellings and/ or one or more PBSA bedspaces on or after that date will be liable to pay the levy, save where an exemption applies. The levy does not apply to existing applications for dwellings or PBSA that were submitted before 1 October 2026. If such existing applications are varied after 1 October 2026 (for example via a further full plans application for the same works, amendment notice or change control application) the levy does not apply to such applications.

3.4 The Levy charging conditions

If a client is submitting an application for building control approval relating to the provision of one or more dwellings or one or more bedspaces of PBSA, the client will need to consider whether the works meet all of the levy charging conditions and will therefore incur a levy charge (see regulation 15).

The levy charging conditions are as follows:

Charging Condition 1: the works must constitute, or form part of, a major residential development.

For the purposes of the Building Safety Levy, a major residential development is a development of 10 new dwellings or more, or 30 new bedspaces or more, if the development is PBSA (see regulation 6). ‘PBSA’ is a building, or part of a building, that is designed or adapted for occupation solely or principally by those undertaking a full-time course of further or higher education at a ‘qualifying institution’, that is, an institution listed in section 11 of the Higher Education Act 2004 (see regulation 9). A development of 10 or more new dwellings is classed as major residential development, regardless of the number of exempt dwellings which that development includes (although exempt dwellings will not themselves incur a levy charge). Developments of fewer than 10 new dwellings or 30 new bedspaces are exempt from the levy charge.

Whether or not the works form part of a major residential development depends on whether the planning permission for the development (s.55 Town and Country Planning Act 1990) is for a major residential development. If the application for building control approval contains fewer than 10 dwellings or 30 bedspaces, but the planning permission (or planning application) is for a major residential development, the application or notice will incur a levy charge (unless subject to another exemption – see regulation 15). This means the levy cannot be avoided by submitting multiple applications for building control approval for fewer than 10 dwellings or 30 bedspaces if the planning permission to which those applications or notices relate is for more than 10 dwellings or 30 bedspaces. If the site for which there is planning permission is a major residential development and is to be built out by multiple clients, applications for building control approval submitted by those clients will be chargeable (subject to any other exemptions).

In the case of a conversion/change of use of a building from a non-residential use to dwellings or PBSA where the works are internal only, the planning permission which is used to establish whether the works are (or form part of) a major residential development is the planning permission for the change of use. For example, if planning permission were in place to change the use of a building from offices into 25 flats, any application for building control approval submitted for works carried out as part of the provision of those flats would be subject to the levy charge.

Charging Condition 2: the works must result in the creation of new residential floorspace

The creation of new “residential floorspace” (as defined in regulation 10) which is floorspace of:

1. new dwellings, other than social housing, supported housing or other exempt uses (see regulation 8 and this chapter),

2. new PBSA, and

3. new communal areas which are intended to be used by chargeable dwellings or PBSA (in whole or in part).

Please see chapter 4.3 on “chargeable floorspace” below for how residential floorspace is identified and measured.

“Creation” of new residential floorspace includes any of the scenarios below (see regulation 15):

  • a new building is being constructed which contains residential floorspace,
  • an existing building which has no residential floorspace is undergoing a change of use or conversion to create residential floorspace (e.g. conversion of an office block into a block of flats),
  • an existing building which has some residential floorspace is having additional floorspace created, either through extension or conversion/change of use (e.g. new storeys are being added to a block of flats).

Charging Condition 3: the client is not an ‘exempt person’

If the client is an exempt person (defined in regulation 13), that is, a non-profit registered provider of social housing (or a wholly owned subsidiary company), all of their works are exempt from the levy charge, whether or not the intended use of the buildings is otherwise classed as exempt (see regulation 15). This is because such providers reinvest profits from housing sold or rented on the open market back into their social housing provision.

Note: In order to be chargeable, the works in the application or notice must meet all 3 charging conditions.

Examples of chargeable and non-chargeable applications for building control approval

  • Example A: Building control approval application with full plans A is submitted to a local authority for the construction of 15 houses for market sale. Building control approval application with full plans A is chargeable, as the works contained within the application are major residential development and result in the creation of new residential floorspace.

  • Example B: Building control approval application with full plans B is submitted to a local authority for the construction of 7 new houses for market sale on an estate for which there is a planning permission for 50 new houses. Building control approval application with full plans B is chargeable, as the works contained within the application form part of a major residential development and result in the creation of new residential floorspace.

  • Example C: Initial notice C is submitted to a local authority for works creating new residential floorspace as part of the conversion of an office block into 12 private build-to-rent flats. Initial notice C is chargeable, as the works contained within the notice are major residential development, and result in the creation of new residential floorspace.

  • Example D: Building control approval application D is submitted to the Building Safety Regulator for works as part of a reconfiguration of an existing block of 10 large private flats into purpose-built student accommodation of 35 bedspaces. The conversion does not create new floorspace. Building control approval application D is not chargeable because, although the works constitute a major residential development (as the development will now consist of more than 30 PBSA bedspaces), no new residential floorspace is created.

  • Example E: Initial notice E is submitted to a local authority for works to an existing building containing a commercial unit and 5 flats. The works will convert the commercial unit into 3 flats and extend the building to create an additional 6 flats. The original 5 flats will also be refurbished. Initial notice E is not chargeable, as, although new residential floorspace has been created, the works have not resulted in the creation of 10 or more new dwellings and therefore do not constitute major residential development.

  • Example F: Building control approval application with full plans F is submitted to the local authority for the construction of 2 new blocks of flats, each containing 20 flats. One block of flats contains social homes, the other contains homes for market-sale. The client is a non-profit registered provider of social housing. Building control application F, which would otherwise be chargeable, is not chargeable, as the client is an exempt person.

  • Example G: Building control approval application G is submitted to the Building Safety Regulator for the construction of a block of 14 flats. Nine of those flats will be social homes, and the remaining 5 will be for market sale. Building control approval application G is chargeable, as the works constitute a major residential development, and new residential floorspace is being created. However, only the floorspace of the 5 market-sale flats, and any communal areas which will be used by the residents of those flats, will be included in the levy charge (see Chapter 2 for how the levy is calculated).

3.5 Exclusions

The Building Safety Levy is chargeable on certain new dwellings and new bedspaces in PBSA constructed in England. As the government does not want to penalise unnecessarily or prevent the development of important community facilities, certain residential developments are exempt from payment of the levy.

The following residential developments are exempt:

  • Social housing (regulation 8 and as defined in Schedule 2 Part 1). This includes:
    • most affordable rent, social rent and intermediate rent dwellings provided by a local authority or registered provider of social housing,
    • shared ownership dwellings,
    • subject to meeting specific conditions, discounted rental properties provided by bodies which are neither a local authority nor a registered provider of social housing,
    • dwellings where the first and subsequent sales are for no more than 70% of their market value (“First Homes”). To be eligible, a planning obligation must be entered into prior to the first sale of the dwelling designed to ensure that any subsequent sale of the dwelling is for no more than 70 per cent of its market value.
  • Supported housing (regulation 8 and as defined in Schedule 2 Part 2) provided by a local authority, housing association, charity, or voluntary organisation.

Applications for building control approval for works that relate to the provision of at least 1 dwelling or at least 1 PBSA bedspace which solely include social housing or supported housing must include levy information and must evidence exemptions at commencement stage (see chapters 7 to 9 and 11). These applications and notices will be provided with a notice of no charge (see chapters 7 to 9 and 15), and applicants will need to confirm levy exemption at completion/ final certificate stage (see chapters 7 to 9 and 18).

Other types of residential development which are excluded from the levy are listed in Schedule 1. For developments excluded under Schedule 1 levy information does not need to be provided as part of an application for building control approval and the collecting authority does not need to issue a notice of no charge. These types of residential development include:

  • school accommodation – meaning residential accommodation provided by a school for the use of its students,
  • accommodation for victims of domestic abuse,
  • hospitals,
  • children’s homes and residential family centres,
  • hotels and hostels,
  • monasteries, nunneries, seminaries, and similar establishments,
  • care homes and hospices,
  • secure residential accommodation such as prisons,
  • almshouses,
  • temporary accommodation for homeless people,
  • accommodation for the armed forces,
  • Ministry of Defence or Crown properties,

Applications for building control approval for works for extensions or improvements to homes that do not create any new dwellings or new PBSA bedspaces do not need to provide levy information and the collecting authority does not need to issue a notice of no charge.

3.6 The collecting authority

The collecting authorities for the Building Safety Levy are local authorities who have building control statutory responsibilities (see regulation 4). This includes district councils, unitary authorities, London boroughs and metropolitan boroughs. Local authorities have collecting authority responsibility for the buildings located within their area even where works are carried out under initial notices submitted by RBCAs or under applications to the Building Safety Regulator. Developers must pay the levy to the relevant local authority for the area in which the buildings are situated regardless of the building control process used - including where RBCAs or the Building Safety Regulator are used.

If a single building is located on the boundary between more than one local authority area, the collecting authority is the local authority in whose area the greater part of the building is situated (regulation 4 (2)).