The 2026 amending regulations also took effect on that date. [1][2]
Which schemes can be charged?
The levy has its own definition of major residential development: ten or more new dwellings, or 30 or more new purpose-built student-accommodation bedspaces. The works must create chargeable residential floorspace and the client must not be an exempt person. All the charging conditions must be considered together. [1]
A building-control application for fewer than ten homes can still be within scope when those homes form part of a larger planning development. Separate small applications are not a basis for ignoring the wider permission. The assessment includes the relevant exempt dwellings when establishing the development's size, even though their own exempt floorspace is not charged. [1]
New residential floorspace can arise from a non-residential conversion as well as a new building. The government guidance gives office-to-flat conversion as an example. Ordinary descriptions such as “conversion” or “low rise” therefore do not settle liability. [1]
Exemptions and calculation
The regulations provide exemptions for specified residential uses and people. The government guidance identifies non-profit registered providers of social housing, and their wholly owned subsidiaries, as exempt persons. Do not assume a commercial developer qualifies merely because part of the scheme provides affordable housing. [1]
The charge uses the applicable local-authority rate and chargeable residential gross internal area. A reduced rate applies to qualifying previously developed land, subject to the statutory site test and supporting evidence. This is not the CIL system of deducting qualifying existing floorspace. [3]
For a dated local example, Epping Forest's October 2026 guidance publishes £46.18 per m² at the standard rate and £23.09 per m² for qualifying previously developed land. The discount requires at least 75% of the relevant site to meet the statutory definition. These are Epping Forest rates, not a London-wide tariff. [4]
Information is required even where the charge is zero
For the applicable building-control routes, new-dwelling or student-accommodation proposals must supply the prescribed levy information, including where an exemption is claimed. Epping Forest explains that missing information can lead to rejection. Its council is the collecting authority for relevant work in the district even where a registered building control approver oversees the project. [4]
The developer guidance distinguishes application-stage information, commencement-stage information and later update notices. Allocate responsibility for each submission rather than assuming the private approver handles every levy obligation on the client's behalf. [5]
When payment is due
Where a charge applies, it must be paid before the earlier of first occupation and building-control completion or final certification. The completion process checks payment or the authority's confirmation of no charge. Build this into the handover programme rather than leaving the levy until after residents move in. [4][5]
Transitional cases and proposed procedure changes
The levy does not generally apply to qualifying applications submitted before 1 October 2026, including relevant later variations. A rejected application resubmitted on or after that date can, however, come within the new regime. Retain the original submission and decision history when claiming transitional treatment. [1]
MHCLG's 10 September 2026 circular also discusses a proposal to require full-plans approval for all work creating dwellings or student accommodation. That proposal is separate from the levy already in force. Check the final implementing provisions before treating a universal full-plans rule as enacted. [6]