(1)This Chapter has effect in relation to payments made on or after the appointed day under contracts relating to construction operations.
(2)Where a certificate issued to a person under section 561 of the Taxes Act 1988 is in force immediately before the appointed day, the person is to be treated as if, on the appointed day, the Board of Inland Revenue had registered him for gross payment.
(3)Where a registration card issued to a person in accordance with regulations made under section 566(2A) of the Taxes Act 1988 is in force immediately before the appointed day, the person is to be treated as if, on the appointed day, the Board of Inland Revenue had registered him for payment under deduction.
(4)Subsection (5) applies in relation to the first payment (“the relevant payment”) made after the appointed day by a person (“C”) to a sub-contractor (“SC”) under a contract relating to construction operations if—
(a)before the appointed day, C had made one or more payments to SC under the contract or another such contract,
(b)the last of those payments (“the last payment”) was made in the year of assessment in which the relevant payment was made or in either of the two years of assessment before that,
(c)at the time of the last payment—
(i)a certificate issued to SC under section 561 of the Taxes Act 1988 was in force, or
(ii)a registration card issued to SC in accordance with regulations made under section 566(2A) of that Act was in force, and
(d)on making the relevant payment, C has no reason to believe that SC—
(i)did not become registered for gross payment or (as the case may be) for payment under deduction by virtue of subsection (2) or (3), and
(ii)is not still so registered.
(5)Where this subsection applies, regulations under section 69(1) shall not require C, before making the relevant payment, to verify whether SC is registered for gross payment or for payment under deduction.
(6)Where subsection (5) applies, C shall be entitled to assume, on making any further payments to SC under a contract relating to construction operations, that SC has not subsequently ceased to be so registered, unless notified to the contrary in accordance with regulations made under section 69(3).
(7)In this section “the appointed day” means such day as the Treasury may by order appoint.
(8)The Treasury may by order make such further supplemental and transitional provision and savings as they think fit in connection with the coming into effect of this Chapter.