This information is for generalised information only – please refer to the Regulations and Government Guidance shown at the links at the end of this page for full details and information
Introduction
From 1 October 2026, a new Building Safety Levy will be charged on residential developments in England.
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.
Who is affected
The levy will be charged on certain applications for works that result in:
- 10 or more new dwellings
- 30 or more new bedspaces in purpose-built student accommodation (PBSA)
This includes change of use to residential purposes.
Exemptions
Building work of any kind is exempt if it is built by an ‘exempt person’.
An exempt person 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.
Required information from developers
From 1 October 2026, levy information must be provided with relevant:
- Full Plans applications
- Higher-Risk Building applications
- Initial Notices
- Other applications prescribed by the Regulations
Where the required levy information is not provided, applications may be rejected.
Initial Notices that do not contain the required levy information must be rejected.
Payment timing
The levy must be paid on or before the earlier of the completion notice date and the first date of occupation.
A levy notice will be issued setting out the amount payable and payment arrangements.
Collection and enforcement
Levy rates vary by local authority and on whether the development is on previously developed land.
The Government has set Building Safety Levy rates for each local authority area in England. For developments within South Ribble Borough, the rates from 1 October 2026 are:
- £20.13 per square metre of chargeable floorspace for development on non-previously developed land.
- £10.06 per square metre of chargeable floorspace for development on qualifying previously developed land.
Local authorities with building control responsibility will act as Levy Collecting Authorities and transfer the funds to central government.
Enforcement
The Building Safety Levy is a statutory requirement. Failure to pay the levy may result in:
- A completion certificate not being issued; or
- A final certificate being rejected, where applicable.
Developers should ensure that levy liabilities are settled in accordance with the Regulations to avoid delays in project completion.
Disputes and appeals
If a developer disagrees with:
- The levy charge;
- A refund amount; or
- A decision not to issue a refund,
they may request a review by the Council within 28 days of the relevant decision. If they remain dissatisfied following the review, they may appeal to the First-tier Tribunal.
Further information
You can read the regulations here - Building Safety Levy (England) Regulations 2025.
For Building Levy Guidance, methodology and the levy rates table,visit the GOV.UK site - Building Safety Levy - Guidance.