Developer contributions

The following do not pay the levy:

• development of less than 100 square metres, unless this consists of one or more dwelling and does not meet the self-build criteria below, in which case the levy is payable (see regulation 42 on minor development exemptions)
• buildings into which people do not normally go (regulation 6(2))
• buildings into which people go only intermittently for the purpose of inspecting or maintaining fixed plant or machinery (regulation 6(2))
• structures which are not buildings, such as pylons and wind turbines
• specified types of development which local authorities have decided should be subject to a ‘zero’ rate and specified as such in their charging schedules

The following can be subject to an exemption or relief where the relevant criteria are met, and the correct process is followed:

• residential annexes and extensions where an exemption has been applied for and obtained prior to commencement of the development
• ‘self-build’ houses and flats, which are built by ‘self-builders’ where an exemption has been applied for and obtained prior to commencement of the development
• social housing that meets the relief criteria set out in regulation 49 or 49A (as amended by the 2014 Regulations), the 2015 Regulations and the 2020 (No. 2) Regulations) and where an exemption has been applied for and obtained prior to commencement of the development
• charitable development that meets the relief criteria set out in regulations 43 to 48 and where an exemption has been applied for and obtained prior to commencement of the development

Where an exemption or relief has been obtained for residential annexes, self-build housing, charitable development or social housing, it is important to note that a commencement notice must be submitted prior to the development commencing. If a commencement notice is not submitted in time, the charging authority must impose a surcharge equal to 20% of the notional chargeable amount, capped at £2,500. 

The charging authority only has discretion to waive the surcharge if it is less than any reasonable administrative costs which it would incur in relation to collecting it. See regulation 83 as amended by the 2019 Regulations.

Where the levy liability is calculated to be less than £50, the chargeable amount is deemed to be zero, so no levy is due.

Mezzanine floors, inserted into an existing building, are not liable for the levy unless they form part of a wider planning permission that seeks to provide other works as well.