Section 2: Levy rates and calculations
Source: gov.uk (2025-07-10)

This section sets out the levy rates in each local authority and explains details such as the previously developed land levy rate.

Chapter 4. How the Building Safety Levy is calculated

4.1 How the Levy rates work

The government has set and listed levy rates (the ‘applicable area rate’) for each local authority area in Schedule 3. This is the rate that is charged per square metre of chargeable floorspace (see chapter 4.3 (#chapter4-3)) in a chargeable development (see regulation 20). In addition, the government has set levy rates for each local authority for development being constructed on previously developed land, sometimes known as brownfield land (see regulations 20 and 21 as discussed in chapter 4.2 (#chapter4-2)). The previously developed land levy rate is half that of the standard levy rate, recognising that the costs of building on this type of land are often higher.

The levy rates per square metre for each local authority area are laid out in Schedule 3 (see chapter 5 (#chapter5).

The levy rate for each building is the levy rate for the local authority area in which that building is located (regulation 20).

If a building spans more than one local authority area, the levy rate for that building is the levy rate for the local authority area in which the greater part of the building is situated (regulation 4(2)).

The Levy applies to England only. If a development spans the border between England and Wales or Scotland, the buildings which are wholly situated within England will be subject to the levy charge, and the levy rate for those buildings is the levy rate for the local authority area in which those buildings are situated (regulation 20). A building which spans the border of England and either Wales or Scotland is not subject to the levy charge.

The Scottish Government has announced that it plans to introduce its own, separate, Scottish Building Safety Levy from 1 April 2027. For more information, please visit Building Safety Levy - Taxes (https://www.gov.scot/policies/taxes/scottish-building-safety-levy/)

4.2 Previously Developed Land

Chargeable developments which are constructed on previously developed land (PDL), sometimes known as brownfield land, will be charged using a 50% discounted levy rate (see regulations 20 and 21), to reflect the often higher cost of developing this type of land.

All chargeable development where planning permission is granted through permitted development rights will be charged using the PDL discounted rate (see regulation 20). When is permission required? - GOV.UK (https://www.gov.uk/guidance/when-is-permission-required#What-are-permitted-development-rights)

For other types of development, for the purposes of charging the levy, PDL is defined as land which either has a building on it, or had a building on it at any point on or after the 1st July 1948 (see regulation 21). However, land is not PDL if:
- the building on the land is used for agriculture or forestry,
- the building that was most recently on the land was used for agriculture or forestry,
- the land has been developed for minerals extraction, or
- the land has been developed for waste disposal by landfill.
The definition of ‘agriculture’ and that of ‘building’ is that used by the Town and Country Planning Act 1990.

In order to qualify for the PDL discounted rate, at least 75% of the land within the redline boundary of the development (as specified by the planning permission) in which the works are being constructed must meet the definition of PDL set out above – this is known as a ‘previously developed site’. This is judged on the date the planning permission is granted (or if earlier the date development was begun). Where works in an application for building control approval form part of a wider development, it is the area of the planning permission for the wider development which is relevant to qualifying for the PDL rate. For example:
- On Site A, 80% of the land within the planning permission redline is PDL. A building control approval application with full plans is submitted for twenty houses (“application A”), constructed on the 20% of the land, which is not previously developed. Application A is charged at the discounted PDL rate, as more than 75% of the land within the planning permission redline is PDL.
- On Site B, 60% of the land within the planning permission redline is PDL. A building control approval application with full plans (“application B”) is submitted for twenty houses, constructed on the 60% of the land which is previously developed. Application B is charged at the standard levy rate, as less than 75% of the land within the planning permission redline is PDL.
4.3 Chargeable floorspace

Chargeable floorspace is the new residential floorspace that will be created as a result of the works in the application, or notice being carried out (see regulations 17 to 19). New residential floorspace (defined in regulation 10) is the floorspace of new dwellings, new PBSA and new chargeable communal areas (in whole or in part) (see regulation 11 and chapter 4.4 (#chapter4-4)), and is not the floorspace of social housing or supported housing. The floorspace of any exempt accommodation contained within the application or notice (see chapter 3.5 (https://www.gov.uk/guidance/building-safety-levy-guidance/section-1-introduction#chapter3-5) on exemptions) is not chargeable floorspace.

Floorspace should be measured using gross internal area (GIA) (see regulation 12). For guidance on how this should be measured and what areas of a building should be included in the GIA, please see the Royal Institution of Chartered Surveyors’ Code of Measuring Practice, 6th Edition (https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/real-estate-standards/code-of-measuring-practice)

4.4 Communal areas

The floorspace of communal space for residents which is for the (whole or partial) benefit of the occupants of chargeable dwellings or PBSA is chargeable (see regulations 11, 18, and 19). For example, in a block of all chargeable flats, all communal areas in the building are chargeable. This includes stairways, lobbies, landings, service areas of the building such as plant rooms, and any other areas which are solely for the use of occupants. For example, a gym within a block of all chargeable flats which is only for the use of occupants is chargeable floorspace. A gym with members who are not resident would not be in scope of the levy as areas that are for use by the general public are not chargeable (regulation 11(3)).

Communal areas which are intended to be used only by exempt dwellings, or other excluded areas (e.g. a landing on a floor of flats all classed as social housing, or a staff entrance to a retail space on the ground floor of a block of flats) are not chargeable.

Where communal areas are intended to be used by both exempt units (i.e. exempt dwellings, and other exempt units such as a retail or office space) and chargeable units (i.e. chargeable dwellings or PBSA) on the development, a proportion of the floorspace of that communal area is chargeable. This proportion of the communal floorspace is equivalent to the floorspace of the chargeable units as a percentage of the total floorspace of exempt and chargeable units using the communal area (see regulations 11, 18, and 19). The chargeable percentage of communal floorspace should be determined by considering the proportion of exempt and chargeable units that use the communal area across the whole development for which there is planning permission (see regulation 11 (4)), not just those in the building containing the communal area.

Example 1: A building control application is submitted for a block of flats. A lobby in the block of flats provides access to both chargeable dwellings and exempt dwellings. The floorspace of the chargeable dwellings (FCD) is 500m2, the floorspace of the exempt dwellings (FED) is 200m2, and the floorspace of the lobby is 50m2 (FL). Divide the floorspace of the chargeable dwellings by the floorspace of the chargeable and exempt dwellings combined. Then multiply this by the floorspace of the lobby, to obtain the total chargeable floorspace of the lobby (CFL). The chargeable floorspace of the lobby is 35.71m2:

Example 2: A building control application is submitted for block of flats A within a wider development for blocks A, B, and C. Block A and block B consist of chargeable dwellings, and block C consists of exempt dwellings. Block A contains a residents’ car park in the basement, which will be used by residents of all of blocks A, B, and C. When calculating the chargeable floorspace of the car park, the floorspace of flats within blocks A, B, and C should all be taken into account. The total floorspace of the flats within block A (FA), which is 1200m2, and the total floorspace of the flats within block B (FB), which is 1500m2, should be added together. This figure should then be divided by the total floorspace of the flats within block A, block B, and block C (FC, which is 1900m2). This figure should then be multiplied by the total floorspace of the car park (FCP), which is 40m2, to obtain the total chargeable floorspace of the car park (CFCP). The chargeable floorspace of the car park is 23.47m2:

The chargeable floorspace for each building in an application or notice should be calculated separately (using the steps in regulations 16 – 19) and then added together to give the total levy charge for an application or notice. If the total chargeable floorspace for a building is a negative number, the chargeable floorspace for that building is treated as nil.

Communal areas which form part of a building which does not itself contain dwellings or PBSA is not levy chargeable even if used by residents of other chargeable parts of the development, e.g. a bin store for the use of occupants of dwellings, which is in a building which does not contain dwellings.

4.5 Conversions and reconfigurations

Building work which results in new residential floorspace is chargeable, subject to satisfying the levy charging conditions (see regulations 15 and 17 as discussed in chapter 3.4 (https://www.gov.uk/guidance/building-safety-levy-guidance/section-1-introduction#chapter3-4)). This includes changes of use (‘conversions’) of buildings which were previously used for other purposes.

For example, when converting an existing office building into a block of 12 levy-chargeable flats, the floorspace of those flats and any communal space (see regulations 18 and 19) which serves them is chargeable, as new residential floorspace has been created, even if there is no change to the overall footprint of the building.

Where works are carried out to a building which is already used for a levy-chargeable residential use, only new residential floorspace created as a result of those works is chargeable, subject to satisfying the levy charging conditions (see regulations 15 and 17, as discussed in chapter 3.4 (https://www.gov.uk/guidance/building-safety-levy-guidance/section-1-introduction#chapter3-4)). For example, if works are carried out to refurbish a block of levy-chargeable flats and add additional storeys (and the new storeys contain 10 or more new levy-chargeable flats) the floorspace of the new flats and any new communal areas (see regulations 18 and 19) which serve them will be chargeable. The floorspace of existing flats is deducted from the proposed total floorspace of flats to give the chargeable flats floorspace. The floorspace of existing communal areas is deducted from the proposed total floorspace of communal areas to give the chargeable communal floorspace.

If a client is reconfiguring a building already used for residential use which would attract a levy charge, and removing some existing residential floorspace whilst adding new residential floorspace elsewhere, the net additional residential floorspace is chargeable (subject to satisfying the levy charging conditions – see chapter 3.4 (https://www.gov.uk/guidance/building-safety-levy-guidance/section-1-introduction#chapter3-4)). Calculate the net additional chargeable dwelling/PBSA floorspace (see regulation 17) and the net additional chargeable communal floorspace separately (see regulations 18 and 19).
- To obtain the total chargeable dwellings/ PBSA floorspace, calculate the total floorspace of the dwellings/PBSA upon the completion of the works in the application, and subtract the total floorspace of the original dwellings/PBSA (i.e. before the works have begun).
- If communal areas are not shared with non-chargeable units, calculate the total floorspace of the communal areas upon the completion of the works in the application, and subtract the total floorspace of the original communal areas (i.e. before the works have begun).
- If use of existing or proposed communal areas is shared between chargeable and non-chargeable units, then the total chargeable proportion of the existing communal areas should be deducted from the total chargeable proportion of the total proposed communal areas in order to give the net chargeable communal areas.
Then, add the net additional dwelling floorspace and the net additional communal floorspace to obtain the total chargeable floorspace for the building.

Chapter 5: Table of levy rates by local authority