http://www.legislation.gov.uk/uksi/2000/921/note/madeThe Income and Corporation Taxes Act 1988, Section 559(4A), Order 2000Income taxTaxKing's Printer of Acts of Parliament2013-02-06INCOME TAX This Order sets the rate of deduction which a contractor in the Construction Industry has to make, from payments which he makes to sub-contractors to which section 559 of the Income and Corporation Taxes Act 1988 (“the Taxes Act”) applies. This excludes a sub-contractor who holds a sub-contractor’s tax certificate, with the result that section 561 of the Taxes Act applies (This note is not part of the Order)

This Order sets the rate of deduction which a contractor in the Construction Industry has to make, from payments which he makes to sub-contractors to which section 559 of the Income and Corporation Taxes Act 1988 (“the Taxes Act”) applies. This excludes a sub-contractor who holds a sub-contractor’s tax certificate, with the result that section 561 of the Taxes Act applies

The rate of deduction may not exceed the basic rate of income tax for the year of assessment in which the payment is made. This Order sets the deduction rate at eighteen per cent.