Regulation 2 Amendment of the Income Tax (Construction Industry Scheme) Regulations 2005

The Income Tax (Construction Industry Scheme) Regulations 2005^f1 are amended as follows.

In regulation 4 (monthly return)^f2 omit paragraphs (10) and (11).

At the end of regulation 56(5) (application of sums deducted under section 61)^f3 insert—

“but this paragraph does not apply to a qualifying sub-contractor within paragraph (5A).

(5A)

A qualifying sub-contractor is within this paragraph if—

(a)

that sub-contractor is subject to a winding-up under Part 4 of the Insolvency Act 1986^f4, and

(b)

that sub-contractor has—

(i)

ceased trading,

(ii)

permanently ceased making payments to which section 61 of the Act^f5 applies in its capacity as a contractor, or

(iii)

ceased trading and permanently ceased to make any payments within sub-paragraph (b)(ii).

(5B)

Where a qualifying sub-contractor is within paragraph (5A), the Commissioners for Her Majesty’s Revenue and Customs may repay any sum deducted under section 61 of the Act to that sub-contractor during the tax year in which the deduction was made.”.