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Policy

Taxes

From
Deputy First Minister and Cabinet Secretary for Finance and Local Government, +1 more … Minister for Public Finance
Directorate
Financial Management Directorate, +1 more … Public Spending Directorate
Topic
Economy, Money and tax, Public sector, +1 more … Scottish Budget
Policy actions  7 of 9

Building Safety Levy

The Scottish Building Safety Levy is a new national devolved tax that will be paid by developers of new-build residential properties. It is broadly equivalent to the UK Government’s Building Safety Levy for England. The levy will help fund Scotland’s Cladding Remediation Programme.

The Building Safety Levy (Scotland) Act 2026 completed its passage through the Scottish Parliament and received Royal Assent on 13 May 2026. We intend to introduce the levy in April 2028, giving industry time to prepare.

Technical consultation and indicative rates

We have published a technical consultation on the practical operation of the Scottish Building Safety Levy, including arrangements for registration, tax returns, payment and reliefs. The consultation will close on 9 October 2026. Indicative levy rates were published alongside the consultation to give developers more than 20 months’ advance notice of Levy liabilities.

Feedback from the consultation will help inform the secondary legislation and administrative arrangements needed to implement the levy.

What the money will be used for 

We would expect the Levy to raise between £360 million and £450 million over its 15 year period. This will provide funding for Scotland’s Cladding Remediation Programme.  

Find out more about the Cladding Remediation Programme. 

Who will pay 

Under our plans, developers would pay the Levy when they build: 

  • new homes to sell 
  • student flats and build-to-rent properties 
  • homes created from converting other buildings 

Some builds would not have to pay, including social housing, affordable housing, and homes built on islands. Developers will be able to build up to 29 units per year without paying the Levy.

Engagement with Revenue Scotland and other bodies is ongoing to ensure that Revenue Scotland can administer the tax effectively following implementation.

How we got here

In 2024, we asked for views on our plans for the Levy. Responses helped inform the development of the legislation and the design of the levy. Before that, we worked with the UK Government to get the powers we needed to create a Scottish Levy. Read the joint consultation response on GOV.UK. 

We also set up an Expert Advisory Group to give us advice on the Levy.

Following the passage of the Building Safety Levy (Scotland) Act 2026, we continue to engage with stakeholders on the operation of the levy to help inform secondary legislation.

Impact assessments 

We looked at how the Levy might affect different groups. You can read our assessments on: 

Progress in Parliament 

The Building Safety Levy (Scotland) Bill was introduced to the Scottish Parliament in June 2025. The Bill completed Stage 1 in January 2026, passed Stage 3 in March 2026 and received Royal Assent on 13 May 2026, becoming the Building Safety Levy (Scotland) Act 2026.

The Act provides the legal framework for the levy, with further regulations to be developed ahead of implementation in April 2028.

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