Paragraph 46

United Kingdom

(1)

This paragraph applies where—

(a)

work is carried out under a construction contract,

(b)

as a result of the work, material undergoes a F1... disposal,

(c)

the contract makes no provision as to the disposal of such material, and

(d)

the contract was made on or before 29th November 1994 (when the proposal to create tax was announced).

(2)

In such a case the amount of any payment which falls to be made—

(a)

under the construction contract, and

(b)

in respect of the work,

shall be adjusted, unless the contract otherwise provides, so as to reflect the tax (if any) chargeable on the disposal.

(3)

For the purposes of this paragraph a construction contract is a contract under which all or any of the following work is to be carried out—

(a)

the preparation of a site;

(b)

demolition;

(c)

building;

(d)

civil engineering.

Annotations

F1: Word in Sch. 5 para. 46(1)(b) omitted (with effect in accordance with s. 42(2), Sch. 12 para. 29(1) of the amending Act) by virtue of Finance Act 2018 (c. 3), Sch. 12 para. 16(7)

C1: Sch. 5 extended (19.3.1997) by 1997 c. 16, s. 50(1), Sch. 5 Pt. I para. 4(3)