17 August 2021 
Andrea Marshall, Tax Specialist
Ministry of Housing Communities and Local Government Consultation on the Building Safety Levy
This consultation document can be found here. It closes on 15 October 2021.
The Building Safety Levy relates to England only and is due to be introduced in 2022.
It will apply to new high-rise residential buildings, care homes, and hospitals which are 18 metres or more in height, or at least seven storeys (“higher-risk buildings”). It will also apply to conversions, such as office to residential conversion
Higher risk buildings applying for building control approval will be subject to the new levy, unless excluded by regulations. Exclusions from the levy include Affordable Housing and Hospitals. (It does not appear that student accommodation is excluded.)
It is proposed that the Client of a project will be responsible for paying, or ensuring payment of, the levy. By “Client” we mean any person or organisation for whom a construction project is carried out, including as part of their business. Therefore, universities or development companies will be responsible for paying the levy.
The government is seeking views on two options for the basis for calculating the levy, either:
There may be different schedules of levy rates depending on geographical area.
The levy will be administered and paid to the Secretary of State, or a body designated to undertake these functions. It will be used for the purpose of meeting the government’s building safety expenditure (such as providing assistance for the purpose of removing unsafe cladding).
Andrea will be collating a response on behalf of BUFDG, HEPA and AUDE. Please send your comments to her by 1 October.
