Regulation 22 Payments in respect of property used for businessI1
United Kingdom
A payment under a construction contract is not a contract payment if the payment is made by a person to whom section 59(1)(l) of the Act applies in respect of construction operations relating to property used for the purposes of the business of—
that person, or
another company in the same group or of another company of which that company owns 50% or more of the shares.
For the purpose of paragraph (1)—
property is not used for the purposes of the business of a person if it is for sale or to let F1(except where the sale or letting of that property is purely incidental to the business of that person) or is held as an investment by that person;
in determining whether property is used for the purposes of the business of a person incidental use of that property by any other person is disregarded;
section 413(3)(a) of ICTA applies to determine whether two companies are in the same group.
Annotations
Textual amendments
- F1
Words in reg. 22(2)(a) inserted (26.3.2007) by The Income Tax (Construction Industry Scheme) (Amendment) Regulations 2007 (S.I. 2007/672), regs. 1, 6