The Nature Restoration Levy Regulations 2026
Established the procedures for calculating, paying, and enforcing the Nature Restoration Levy for English development projects.
These Regulations establish the administrative framework for the Nature Restoration Levy in England and Wales under the Planning and Infrastructure Act 2025.
The document authorizes Natural England to collect payments from developers, set levy rates based on environmental impact, and enforce payment through surcharges, interest, and stop notices.
It applies to developers who request to pay the levy to discharge environmental obligations, and potentially to landowners if a developer defaults or fails to assume liability.
Arguments For
The regulations state that the levy funds conservation measures to offset negative environmental impacts of development.
Proponents argue the levy provides a standardized mechanism for developers to discharge environmental obligations via an Environmental Delivery Plan (EDP).
The document specifies that levy rates are based on the actual and expected costs of delivering, managing, and monitoring conservation measures.
The order asserts that administrative expenses, including the operation of shared systems between multiple EDPs, are reasonably attributable to the levy funds.
Arguments Against
Legal scholars may question the complexity of the inflation-adjustment formula and its impact on long-term development budgeting.
Property owners have raised concerns regarding regulation 19, which allows Natural England to impose joint and several liability on landowners if no developer assumes liability.
Civil liberties groups might challenge the scope of stop notices, which can halt all development activities (except health and safety works) for non-payment of the levy.
Affected parties may find the 28-day window for requesting reviews of levy calculations and apportionments to be a restrictive timeframe for complex developments.
Part 1
INTRODUCTION
Citation, commencement and extent
- -(1) These Regulations may be cited as the Nature Restoration Levy Regulations 2026.
- (2) These Regulations come into force on the day after the day on which they are made.
- (3) These Regulations extend to England and Wales.
Interpretation
- -(1) In these Regulations- [...definition list including 'the 2025 Act', 'adjusted payment amount', 'assumption of liability notice', 'levy amount', 'liable person', 'material interest', 'planning permission', and 'relevant development'...] (2) Where liability has been apportioned under regulation 19... any reference... to a relevant amount is to such amount... for which the liable person is liable. (3) ...any reference to a 'consent, permission or other authorisation' includes... planning permission [and] approval of reserved matters...
Giving and sending notices and documents
- -(1) Where a notice or document is to be given or sent... it may be given or sent by... delivering it by hand... leaving it at the person's proper address... sending it by post... sending it by email... [or] other appropriate electronic means. [...] (6) A notice or document sent... by email... is to be treated as having been given or sent at 9am on the working day immediately following the day on which it was sent.
This part defines the legal terms used throughout the regulations and sets the start date for the new rules.
It establishes that the regulations apply to England and Wales.
It also provides specific procedures for how Natural England and developers must exchange legal notices, including rules for electronic service.
Part 2
LIABILITY TO PAY THE LEVY
Chapter 1
Requirements before commencement of development
When development begins
4 In these Regulations, a development begins when development would be considered to begin for the purposes of the enactment under which it is authorised...
Pre-commencement condition of development
- -(1) A public authority granting planning permission for a relevant development must impose the condition of development specified in paragraph (4). [...] (4) The condition is that development must not begin before either- (a) liability to pay the levy is discharged, or (b) if the levy is to be paid by instalments, liability to pay the first instalment is discharged.
Notification of discharge of pre-commencement condition
- -(1) Natural England must notify the relevant authority... where- (a) a condition of development has been imposed... and (b) the applicable condition... has been met. [...]
This section prohibits development from starting until the developer pays either the full levy or the first installment.
Planning authorities must include this payment requirement as a formal condition when granting planning permission.
Natural England is responsible for notifying the planning authority once the developer has met these financial obligations.
Chapter 2
Liable persons
Standard liability for general consents
- -(1) This regulation applies where levy liability arises... for a relevant development which is authorised by a general consent. (2) The committed developer is a liable person.
Assumption of liability
- -(1) A person may agree to assume levy liability by giving notice in writing (an 'assumption of liability notice') to Natural England. [...] (4) An assumption of liability notice takes effect when it is received by Natural England. [...]
Transfer of liability
- -(1) A liable person ('the transferor') may transfer their levy liability to another person by giving notice in writing (a 'transfer notice') to Natural England. [...] (4) When Natural England receives a transfer notice- (a) the transferor ceases to be a liable person; (b) every person who is named in the transfer notice... becomes a liable person...
These regulations identify who is responsible for paying the levy.
While the developer is typically the liable party, individuals or companies can formally assume liability by notifying Natural England.
Liability can also be transferred to a new party, provided they agree to the transfer in writing, though the original party remains responsible for any payments that were already overdue at the time of the transfer.
Chapter 3
Effect of liability
When liability to pay arises
10 Levy liability arises... (a) planning permission, when Natural England- (i) receives an assumption of liability notice, or (ii) imposes levy liability on the owners... (b) a general consent- (i) if the relevant development is subject to prior approval, when approval is given...
Payment by instalments
- -(1) When levy liability arises... Natural England may allow the levy to be paid by instalments. [...]
Liability notice
- -(1) Natural England must give a notice (a 'liability notice') to each liable person after levy liability arises. (2) A liability notice must include... the levy amount... the date on or before which the levy amount must be paid... [and] the possible consequences if the levy is not paid...
Amendment of liability notices
- [...] (2) Natural England must amend a liability notice where- (a) a person becomes a liable person, (b) Natural England imposes levy liability... (c) the levy amount is recalculated...
Natural England must issue a 'liability notice' to all responsible parties once the duty to pay is triggered.
This notice must specify the total amount due, payment deadlines, and inflation adjustments.
Natural England has the discretion to allow payment in installments and must update the notice if the amount is recalculated or if the liable parties change.
Chapter 4
Imposition of liability
Failure to assume liability
- -(1) Natural England must impose levy liability on the owners of the land where- (a) the relevant development is authorised by planning permission, (b) Condition A or B applies, and (c) no person has assumed levy liability... (2) Condition A is that- (a) when Natural England accepted the request to pay, the relevant development had not begun, and (b) the relevant development has now begun. [...]
Default of payment
- -(1) Natural England may impose levy liability on the owners of the land where- (a) there is an overdue relevant amount, and (b) Natural England has made reasonable efforts to recover the amount... (2) Natural England may impose levy liability notwithstanding that all liable persons are insolvent.
Owners of relevant land: apportionment of liability
- -(1) Where levy liability is imposed on the owners... Natural England must- (a) apportion liability between each material interest... (2) The amount... for each owner... is [calculated by the owner's interest value divided by total value of all interests, multiplied by the outstanding amount].
If no one voluntarily assumes liability or if the primary liable person fails to pay, Natural England is directed to impose the debt on the landowners.
In these cases, Natural England must divide the total debt among different owners (such as freeholders and long-leaseholders) based on the market value of their respective interests in the land.
This liability remains even if the original developer becomes insolvent.
Part 3
AMOUNT, PAYMENT AND USE OF THE LEVY
Chapter 1
Levy amount
Charging schedules
- -(1) When setting the rates... Natural England must have regard to the actual costs incurred, and costs expected to be incurred... in the delivery, management, maintenance and monitoring of the conservation measures... [and] the administration... connected with the EDP... (3) A charging schedule may- (a) operate by reference to... the total area... number of buildings... [or] number of units... (b) provide for differential rates... for different zones... [or] different descriptions or purposes of development...
Calculation of the levy amount
- -(1) The levy amount must be calculated in accordance with this regulation. [...] (4) [Calculation formula involving index figures for inflation]. (5) ...the index figure... is- (i) the figure in the RICS CIL Index... (ii) if the RICS CIL Index is not so published, the... consumer prices index including owner occupiers' housing costs...
Levy rates are set by Natural England based on the costs of environmental conservation and administration.
Rates can vary depending on the location, type, and size of the development (e.g., number of units or total area).
The final amount is adjusted for inflation using the RICS CIL Index or the Consumer Prices Index (CPIH).
Chapter 2
Payment of the levy
Inflation-adjusted payment amount
- -(1) The adjusted payment amount is to be calculated by applying the following formula- [Formula provided]... (5) This regulation does not apply to payments made for a surcharge... or interest...
Request to transfer payments between developments
- -(1) A liable person may make a request... for payments made against... 'development A' to apply to... 'development B' where- (a) the relevant land... for development A is the same as... development B... and (d) no developer intends to proceed any further with development A.
Refund of overpayments
- -(1) Natural England must repay an overpayment... as soon as practicable... (3) But paragraph (1) does not apply if- (a) Natural England is satisfied that the amount... is less than the reasonable administrative costs... (b) the overpayment does not come... to Natural England's attention before the end of... 10 years... (6) Where a person is entitled to a repayment... Natural England must pay... interest [at 0.5% or Bank of England base rate minus 1%].
Payments are adjusted to maintain their value against inflation between the time liability is established and the time of payment.
If a developer stops one project to start another on the same land, they may request to transfer their levy payments to the new project.
Natural England is required to refund overpayments larger than their administrative costs, plus interest, if claimed within ten years.
Chapter 3
Use of the levy
Requirements on use of levy funds
- -(1) Natural England must spend levy funds... to fund conservation measures which- (a) are listed in the EDP... and (b) relate to the identified environmental feature for which the levy was charged... (2) ...spending on- (a) the delivery, management, maintenance and monitoring... (b) administrative expenses... including... (iii) the administration and collection of the levy, including appeals... (6) Levy funds may be- (a) used to reimburse expenditure already incurred; (b) reserved... for expenditure that may be incurred in the future; (c) used beyond the EDP end date...
This chapter mandates that all money collected through the levy must be spent on the specific environmental conservation measures identified in the relevant Environmental Delivery Plan.
Funds may also cover the costs of running the levy system, including enforcement and appeals.
Natural England is permitted to save funds for future projects or reimburse themselves for work already completed.
Part 4
ENFORCEMENT
Chapter 1
Surcharges and interest
Surcharge for failure to assume liability
- -(1) Natural England may impose a surcharge where it imposes levy liability under regulation 16... (3) The amount... is the greater of- (a) 2% of the levy amount, or (b) £300.
Surcharge for late payment
- -(1) Natural England may impose a surcharge where a liable person does not discharge their liability... (3) The specified periods are- (a) 30 days; (b) 6 months; (c) 12 months... (5) The amount... is the greater of- (a) 5% of the outstanding amount... or (b) £300.
Interest on late payment
- -(1) A liable person must pay interest on an overdue relevant amount... (2) Interest... is calculated... (c) at an annual rate of 2.5 percentage points above the Bank of England base rate.
Natural England is authorized to penalize non-compliance with financial surcharges.
Penalties apply for failing to assume liability (2% of the levy), late payments (up to three separate 5% surcharges based on the duration of the delay), and failing to report changes to a development.
Additionally, interest is automatically charged on late payments at 2.5% above the Bank of England base rate.
Chapter 2
Stop notices for non-payment
Warning notice
- -(1) Natural England may issue a... 'warning notice' of its intention to impose a stop notice... where- (a) there is an overdue relevant amount, and (b) Natural England considers it expedient that development should stop... (4) The period... must be... (a) no less than three days, and (b) no more than 28 days...
Issue of stop notice
- -(1) Natural England may issue a... 'stop notice' prohibiting specified activities... (5) A stop notice does not prohibit any works... which are necessary in the interests of health and safety.
Injunctions for breach of stop notice
- -(1) Natural England may apply to the court for an injunction restraining any actual or apprehended breach of a stop notice...
If a levy payment is overdue, Natural England may issue a warning notice followed by a stop notice. A stop notice legally halts specified development activities until the debt is cleared, though it cannot stop essential health and safety work.
Natural England can ask the High Court or county court for an injunction to enforce these orders if a developer continues to work.
Part 5
REVIEWS AND APPEALS
Review of levy amount
- -(1) A liable person may make a request... that it review the calculation of the levy amount... (2) ...must- (a) be made before the end of... 28 days... (4) ...Natural England must review the calculation.
Appeal against levy amount
- -(1) A liable person may appeal to the Secretary of State against the levy amount. (2) ...only... after completion of a review under regulation 50.
Appeal against surcharge or interest
- -(1) A liable person may appeal to the Secretary of State against- (a) a surcharge... or (b) the accrual of interest...
Appeal against warning or stop notice
- -(1) A liable person may appeal to the Secretary of State against a decision... to issue a warning notice... or a stop notice... (3) A warning notice or stop notice which is subject to an appeal continues to have effect.
Liable persons have the right to challenge Natural England's decisions.
They must first ask Natural England for an internal review of levy amounts or how liability was split between owners.
If dissatisfied with the review, they can then appeal to the Secretary of State.
Surcharges, interest charges, and stop notices can also be appealed, although a stop notice remains in force while the appeal is being considered.
Part 6
CROWN APPLICATION
Crown application
- -(1) These Regulations bind the Crown. (2) But regulations 35 to 38 [surcharges] do not apply to the levy liability of persons responsible for administering property belonging to His Majesty in His private capacity. [...]
These regulations apply to government-owned land and the Crown.
Special provisions allow the Duchy of Lancaster and the Duchy of Cornwall to pay the levy from specific funds, and certain surcharges are waived for the King's private property.
Related
The Air Navigation (Restriction of Flying) (Mayflower Park, Southampton) Regulations 2026
Established a temporary restricted airspace for unmanned aircraft at Mayflower Park, Southampton, during the 2026 International Boat Show.
Read MoreThe Air Navigation (Restriction of Flying) (Millbrook, Bedfordshire) Regulations 2026
Restricted the operation of unmanned aircraft in the vicinity of Millbrook, Bedfordshire, on 16 and 17 September 2026.
Read MoreThe Individual Savings Account (Amendment) (No. 2) Regulations 2026
Introduced a £12,000 cash ISA limit for under-65s and a tax charge on interest from cash held in investment ISAs.
Read MoreThe Licensing Act 2003 (Mandatory Licensing Conditions) (Amendment) Order 2026
Authorized the use of digital identification for age verification in licensed premises across England and Wales.
Read More