Scottish Building Safety Levy: technical consultation
Consultation on the operation of the Scottish Building Safety Levy and changes to its scope, including floorspace methodology, exemptions and reliefs, and payment arrangements.
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53 days to respond
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5. Payment flexibilities for build to rent (BTR) and purpose-built student accommodation (PBSA)
The SBSL will be introduced on 1 April 2028 and from this date, all completions that fall within scope will be liable to payment of the Levy. Following the publishing of indicative rates in July 2026, this gives industry more than 22 months' advance notice to prepare ahead of introduction of the SBSL and the associated costs.
The Scottish Government is aware that a small number of BTR and PBSA developments commenced construction prior to the introduction of primary legislation in June 2025, and are not expected to complete until after commencement of the SBSL in April 2028. As BTR and PBSA developments are not contingent on revenue from sales post-completion (which other developers could utilise the pay any levy liabilities) and instead are based on a long-term revenue stream from rents, stakeholders have submitted that the costs arising from the SBSL could be more challenging to pay in these circumstances.
In recognition of the funding models used in these sectors, the Scottish Government proposes to provide a level of payment flexibility to completed BTR or PBSA units where a building warrant has been granted before 5 June 2025. This is the date on which the Building Safety Levy (Scotland) Bill was introduced to the Scottish Parliament. Development falling under these criteria would still be liable for the SBSL, but those responsible for paying the levy would be given an increased length of time to pay the levy.
Under the Scottish Government’s proposal, payment would be due at the end of each quarterly accounting period. For those PBSA and BTR developments meeting the above criteria, eligible taxpayers would have the option of paying their liability over a period of up to three years, on a schedule to be agreed with Revenue Scotland. Any interest accrued during the payment flexibility would remain payable.
The Scottish Government believes this is a fair approach to reflect the particular circumstances of these BTR and PBSA developments, whilst also ensuring that the tax is applied equally across the sector.
Question 13: Do you agree that BTR and PBSA developments that have been granted a building warrant before 5 June 2025 should be given the option to make payments over a period of up to three years?