The Building Safety Levy is part of the government’s wider approach to ensure industry contributes to the costs of remediating building safety defects, while protecting leaseholders and taxpayers. Revenue raised through the levy will support remediation efforts and help make affected buildings safer for residents.
The Building Safety Levy applies to building control applications and initial notices for all new residential development in England, unless exempted.
The levy is charged on relevant building control applications and notices. Full plans applications, initial notices and high-rise building (HRB) applications for developments providing at least 1 dwelling or a bedspace in purpose-built student accommodation must include levy information. Applications may be rejected if the required information is not provided. In the case of initial notices, local authority building control teams must reject those that do not include the necessary levy information. Developers will also need to provide additional information at commencement notice stage to enable the levy to be calculated.
Local authorities with building control responsibility will act as levy collecting authorities. The levy is charged based on residential floorspace. Rates vary by local authority and whether the development is on previously developed land (which attracts a 50% discount). Rates are published on GOV.UK.
Affordable housing, supported housing and any housing built by non-profit registered providers (and their wholly-owned subsidiaries) are exempt from the charge. Small developments with fewer than 10 units are exempt from the levy charge. The regulations list other types of building that are exempt.
The collecting authority will calculate the levy charge once applicants have provided the required levy information and supporting evidence at commencement notice stage. Payment must be made before occupation or completion, whichever happens first.
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.
Failure to pay the levy will mean the building control authority will withhold the completion certificate or reject any final certificate until full payment has been received.