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The Income Tax (Sub-contractors in the Construction Industry) (Amendment No. 2) Regulations 1999

S.I. 1999/2159 · Made 29 July 1999

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

INCOME TAX

Made 29th July 1999

Laid before the House of Commons 29th July 1999

Coming into force 1st August 1999

The Commissioners of Inland Revenue, in exercise of the powers conferred on them by sections 560(2)(ea), 562(2A), 564(2A) and (2B), 565(2A) and (2B) and 566 of the Income and Corporation Taxes Act 1988f1, hereby make the following Regulations:

Annotations to the whole text

Footnotes

f1

1988 c. 1. Section 560(2)(ea) was inserted by paragraph 2(1)(b) of Schedule 27 to the Finance Act 1995 (c. 4). Section 562(2A) was inserted by paragraph 4(3) of Schedule 27 to the Finance Act 1995. Section 564(2A) and (2B) were inserted by paragraph 6 of Schedule 27 to the Finance Act 1995, and amended by paragraph 3 of Schedule 8 to the Finance Act 1998 (c. 36), and section 53 of the Finance Act 1999 (c. 16). Section 565(2A) and (2B) were inserted by paragraph 7(1) of Schedule 27 to the Finance Act 1995, and amended by paragraph 4 of Schedule 8 to the Finance Act 1998 and section 53 of the Finance Act 1999. Section 566 was amended by paragraph 9 of Schedule 27 to the Finance Act 1995, by section 178(1) of, and Part V(32) of Schedule 41 to, the Finance Act 1996 (c. 8), and by paragraph 6 of Schedule 8 to the Finance Act 1998. Section 566(1) was extended by section 98A(1) of the Taxes Management Act 1970 (c. 9) which was inserted by section 165(1) of the Finance Act 1989 (c. 26).

Contents

  1. 1Citation and commencement
  2. 2Interpretation
  3. 3Amendments to the principal Regulations
  4. 4Amendments to the principal Regulations
  5. 5Amendments to the principal Regulations
  6. 6Amendments to the principal Regulations
  7. 7Amendments to the principal Regulations
  8. 8Amendments to the principal Regulations
  9. 9Amendments to the principal Regulations
  10. 10Amendments to the principal Regulations
  11. Signature
  12. Explanatory note

1Citation and commencement

(1)

These Regulations may be cited as the Income Tax (Sub-contractors in the Construction Industry) (Amendment No. 2) Regulations 1999.

(2)

These Regulations shall come into force on 1st August 1999.

2Interpretation

In these Regulations “the principal Regulations” means the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993f1 and “regulation” and “Schedule” mean a regulation, or Schedule, as the case may be, of those Regulations.

3Amendments to the principal Regulations

In regulation 2(2) the reference to “construction contract payments”f1 shall be omitted.

4Amendments to the principal Regulations

(1)

Regulation 21Cf1 shall be amended as follows.

(2)

In paragraph (1)(c) for the words from “contract payments” where they first appear to “evidence of” where they secondly appear there shall be substituted the words “relevant payments and”.

(3)

In paragraph (2)–

(a)

in the words preceding sub-paragraph (a) after “21D” there shall be inserted “, 21E”.

(b)

in sub-paragraph (a) for the words from “to any person” to the end there shall be substituted the words “referred to in section 562(2B)”; and

(c)

in sub-paragraph (b) for the words from “contract payments” to the end there shall be substituted the words “relevant payments”.

5Amendments to the principal Regulations

In regulation 21D(1)(c)f1 for the words from “contract payments” where they first appear to “evidence of” where they secondly appear there shall be substituted the words “relevant payments and”.

6Amendments to the principal Regulations

In regulation 21Ef1–

(a)

in paragraphs (1)(a) and (b) and (2) for the words “construction contract payments” wherever they occur there shall be substituted the word “turnover”;

(b)

in paragraph (1)(c) for the words “construction contract payments” there shall be substituted the words “relevant payments”; and

(c)

in paragraph (2) before the word “cost” the word “direct” shall be inserted.

7Amendments to the principal Regulations

In regulation 23A(4)f1 for “2” there shall be substituted “(2)”.

8Amendments to the principal Regulations

In regulation 41(4B)f1–

(a)

for the words “contract payments, or of construction contract payments” there shall be substituted the words “relevant payments”; and

(b)

the words “, or costs of materials” to the end shall be omitted.

9Amendments to the principal Regulations

In Schedule A1f1 (which specifies the bodies designated as those to which subsection (2) of section 560 of the Income and Corporation Taxes Act 1988f2 applies) there shall be added at the end (as additional bodies so designated)–

“3

Health and Social Services trusts established under Article 10 of the Health and Personal Social Services (Northern Ireland) Order 1991f3”.

10Amendments to the principal Regulations

In Schedule 1f1–

(a)

in the form designated CIS24, on Pages 1 Face to 3 Face, the words “number aside” shall be omitted and the words “[space for name of Contractor]” and “[space for name of Subcontractor]” shall be substituted for each other;

(b)

in the forms designated CIS25(E), CIS25(I) and CIS25(M) for the words “Card holder” there shall be substituted the words “Card number”.

Signature

Nick Montagu

S C T Matheson

Two of the Commissioners of Inland Revenue

29th July 1999

Explanatory note

(This note is not part of the Regulations)

These Regulations further amend the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 (S.I. 1993/743, as amended by S.I. 1995/217, 448, 1996/981, 1998/2622 and 1999/825) (“the principal Regulations”). The main effect of these Regulations is to mirror the changes in primary legislation made by section 53 of the Finance Act 1999 (“section 53”), by broadening the scope of the “turnover tests” in regulations 21A to 21E of the principal Regulations, to allow sub-contractors to count all of their construction income (net of materials) for the purposes of the turnover tests. These Regulations therefore replace existing references to “construction contract payments” and “contract payments” (where relevant) with references to “relevant payments” (as defined in section 53) and “turnover”.