1999 No. 2159

INCOME TAX

The Income Tax (Sub-contractors in the Construction Industry) (Amendment No. 2) Regulations 1999

Made

Laid before the House of Commons

Coming into force

The Commissioners of Inland Revenue, in exercise of the powers conferred on them by sections 560(2)(ea), 562(2A), 564(2A) and (2B), 565(2A) and (2B) and 566 of the Income and Corporation Taxes Act 19881, hereby make the following Regulations:

Citation and commencement1

1

These Regulations may be cited as the Income Tax (Sub-contractors in the Construction Industry) (Amendment No. 2) Regulations 1999.

2

These Regulations shall come into force on 1st August 1999.

Interpretation2

In these Regulations “the principal Regulations” means the Income Tax (Sub-contractors in the Construction Industry) Regulations 19932 and “regulation” and “Schedule” mean a regulation, or Schedule, as the case may be, of those Regulations.

Amendments to the principal Regulations

3

In regulation 2(2) the reference to “construction contract payments”3 shall be omitted.

4

1

Regulation 21C3 shall be amended as follows.

2

In paragraph (1)(c) for the words from “contract payments” where they first appear to “evidence of” where they secondly appear there shall be substituted the words “relevant payments and”.

3

In paragraph (2)–

a

in the words preceding sub-paragraph (a) after “21D” there shall be inserted “, 21E”.

b

in sub-paragraph (a) for the words from “to any person” to the end there shall be substituted the words “referred to in section 562(2B)”; and

c

in sub-paragraph (b) for the words from “contract payments” to the end there shall be substituted the words “relevant payments”.

5

In regulation 21D(1)(c)4 for the words from “contract payments” where they first appear to “evidence of” where they secondly appear there shall be substituted the words “relevant payments and”.

6

In regulation 21E4

a

in paragraphs (1)(a) and (b) and (2) for the words “construction contract payments” wherever they occur there shall be substituted the word “turnover”;

b

in paragraph (1)(c) for the words “construction contract payments” there shall be substituted the words “relevant payments”; and

c

in paragraph (2) before the word “cost” the word “direct” shall be inserted.

7

In regulation 23A(4)4 for “2” there shall be substituted “(2)”.

8

In regulation 41(4B)4

a

for the words “contract payments, or of construction contract payments” there shall be substituted the words “relevant payments”; and

b

the words “, or costs of materials” to the end shall be omitted.

9

In Schedule A14 (which specifies the bodies designated as those to which subsection (2) of section 560 of the Income and Corporation Taxes Act 19885 applies) there shall be added at the end (as additional bodies so designated)–

3

Health and Social Services trusts established under Article 10 of the Health and Personal Social Services (Northern Ireland) Order 19916

10

In Schedule 17

a

in the form designated CIS24, on Pages 1 Face to 3 Face, the words “number aside” shall be omitted and the words “[space for name of Contractor]” and “[space for name of Subcontractor]” shall be substituted for each other;

b

in the forms designated CIS25(E), CIS25(I) and CIS25(M) for the words “Card holder” there shall be substituted the words “Card number”.

Nick MontaguS C T MathesonTwo of the Commissioners of Inland Revenue

(This note is not part of the Regulations)

These Regulations further amend the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 (S.I.1993/743, as amended by S.I.1995/217, 448, 1996/981, 1998/2622 and 1999/825) (“the principal Regulations”). The main effect of these Regulations is to mirror the changes in primary legislation made by section 53 of the Finance Act 1999 (“section 53”), by broadening the scope of the “turnover tests” in regulations 21A to 21E of the principal Regulations, to allow sub-contractors to count all of their construction income (net of materials) for the purposes of the turnover tests. These Regulations therefore replace existing references to “construction contract payments” and “contract payments” (where relevant) with references to “relevant payments” (as defined in section 53) and “turnover”.