Draft legislation: Building Safety Levy (Scotland) Bill

The ATT has responded to the Scottish Parliament's Finance and Public Administration Committee's call for views on the Building Safety Levy (Scotland) Bill.  

The Committee is considering the Bill to introduce the new Scottish Building Safety Levy, which will charge a levy on the construction of residential property in Scotland and is similar in nature to the Building Safety Levy being introduced in England.

The Scottish Building Safety Levy will be introduced in April 2027 and will partly fund the Cladding Remediation Programme in Scotland, which is estimated to cost £1.7 billion over a 15 year period. Unlike the Building Safety Levy in England, it will be administered by Revenue Scotland rather than local councils.

In our response, we consider the potential impact that a new levy may have on demand for new residential property, as well as the possibility that it could incentivise some developers to carry out works to pre-existing buildings instead.

We also draw attention to practical aspects of the Levy-free allowance, including how this is shared between connected parties and the need to ensure there is no requirement for a property developer to register with Revenue Scotland if all developments are covered by the Levy-free allowance.