Regulation 20 Reverse premiumsI1

Subject to paragraph (2), a payment under a construction contract is not a contract payment if the payment is a reverse premium within the meaning of Schedule 6 to the Finance Act 1999^f1 (tax treatment of receipts by way of reverse premium) (see paragraph 1 of that Schedule) F1or section 99 of the Income Tax (Trading and Other Income) Act 2005 (reverse premiums).

Paragraph 5 of Schedule 6 to the Finance Act 1999 (exclusion of receipts taken into account for capital allowances) F2and section 100(1) of the Income Tax (Trading and Other Income) Act 2005 (excluded cases) do not apply for the purposes of paragraph (1).