Regulation 20 Amendments to Part III of the principal Regulations

For regulation 26 the following regulation shall be substituted—

“Validity of sub-contractor’s tax certificate

26

(1)

A sub-contractor’s tax certificate shall be valid, during the period prescribed in paragraph (2), (3), (4) or (5), as the case may be, for the purpose of allowing payments to be made to the user of the certificate without the deduction required by sections 559^f1 and for no other purpose.

(2)

Subject to paragraph (5), where the Board have been satisfied as mentioned in regulation 21B(1), by evidence complying with the six month test, the period prescribed is one year from the date from which the certificate is valid.

(3)

Subject to paragraphs (4) and (5), where the Board have been satisfied as mentioned in regulation 21B(1) or (3), by evidence complying with the main three year test or the alternative three year test, the period prescribed is three years from the date from which the certificate is valid.

(4)

Where a certificate is issued, in the circumstances mentioned in paragraph (3), before 1st September 1999, the period prescribed is the period beginning on the date from which the certificate is valid, and ending 2 years and six months, 3 years or 3 years and six months later (according to the expiry date shown on the certificate) so as to secure an even rate of expiry of certificates.

(5)

Where a certificate has been issued to a partner in a firm, or to a company, which is uncancelled, and an application is made for the issue of a certificate to a new or other partner, or to the company, for use by a new or other director or secretary of that company, the period prescribed is the period from the date from which the certificate is valid, to the date of expiry which appears on all other certificates that are uncancelled, which have been issued to partners in the firm or to the company, as the case may be.”