The Bill introduces a new tax, called the Scottish Building Safety Levy, to be charged on the construction or conversion of residential property developments, with some exceptions. This follows an amendment to the Scotland Act 1998 to include powers for a devolved tax to be charged in relation to certain steps in the building control process.
Money raised through this levy will be used to fund building safety expenditure. An equivalent tax is also being developed in England.
This is a Government bill
The Bill was introduced on 5 June 2025 and is at Stage 1
This Bill is at Stage 1 of the process to decide if it should become an Act.
The Bill creates a building safety levy, which is to be charged in relation to a step in the building control process, and its revenues used to fund improvements to building safety in Scotland.
As with other fully devolved taxes, this levy will be administered by Revenue Scotland.
The Bill sets out at what point in the building control process the levy is to be charged, the types of building which may be taxable, who should pay the levy, and exemptions from the levy.
It explains how the levy should be calculated and gives Scottish Ministers the power to set the rate of levy.
It also creates several penalties, including a penalty for anyone who does not make a tax return and pay tax.
Section 80O of The Scotland Act 1998 allows Scotland to create a tax for the purpose of meeting any building safety expenditure. Section 58 of the Building Safety Act 2022 provides similar powers for UK Ministers.
The Scottish Government intends for the money raised through this new tax to be used to help fund the Scottish Government’s Cladding Remediation Programme.
Building Safety Levy (Scotland) Bill as introduced (2MB, pdf) posted 05 June 2025
Explanatory Notes (264KB, pdf) posted 06 June 2025
Policy Memorandum (331KB, pdf) posted 06 June 2025
Financial Memorandum (350KB, pdf) posted 06 June 2025
Delegated Powers Memorandum (248KB, pdf) posted 06 June 2025
Statements on legislative competence (109KB, pdf) posted 06 June 2025
Explanatory Notes (349KB, pdf) posted 05 June 2025
Policy Memorandum (406KB, pdf) posted 05 June 2025
Financial Memorandum (406KB, pdf) posted 05 June 2025
Delegated Powers Memorandum (281KB, pdf) posted 05 June 2025
Statements on legislative competence (160KB, pdf) posted 05 June 2025
All Bills introduced in the Parliament must be accompanied by specific documents. For most Bills, this includes:
Explanatory Notes: this document provides an overview of what the Bill does, plus a more detailed explanation of individual provisions.
Policy Memorandum: this sets out the objectives of the Bill. It also lists any alternatives considered, details of consultations, and an assessment of the effects of the Bill on a range of areas.
Financial Memorandum: this sets out estimates of costs, savings, and any changes to revenues expected to result from the Bill.
Delegated Powers Memorandum: this is needed if a Bill gives powers to make subordinate legislation or allows Scottish Ministers to issue directions, guidance or codes of practice.
Statements on legislative competence: two short statements, one by the Presiding Officer and one by the Member introducing the Bill. “Legislative competence” means the powers the Parliament has to make law.
The Scottish Parliament's Information Centre (SPICe) prepares impartial research and analysis to assist MSPs in their examination of Bills and other parliamentary business.
A research briefing will be published in due course.
The Bill was introduced on 5 June 2025
At Stage 1, the Bill is given to a lead committee. This is usually the committee whose remit most closely relates to the subject of the Bill. The lead committee will consider and report on the Bill. Other committees may also examine the Bill and report to the lead committee. Finally, there is a debate and vote by all MSPs on the general principles of the Bill. If the general principles are not agreed to, then the Bill ‘falls’ and can’t become law.
The lead committee for this Bill is the Finance and Public Administration Committee.
The lead committee will usually examine the Bill through evidence sessions. This will involve contributions from individuals and organisations, known as 'witnesses', with knowledge of the subject matter. The committee might also discuss the Bill in private sessions.
The Finance and Public Administration Committee has launched a call for views to help inform its examination of the Bill. The Committee is inviting organisations and individuals to submit written views on the general principles of the Bill, including the estimated financial implications.
Read the questions in the call for views and submit your views on Citizen Space.
The call for views closes on Friday 15 August 2025.