Part 3Income tax, corporation tax and capital gains tax

Chapter 3Construction industry scheme

Registration of sub-contractors

64Requirements for registration for gross payment

1

This section sets out the requirements (in addition to that in subsection (1) of section 63) for an applicant to be registered for gross payment.

2

Where the application is for the registration for gross payment of an individual (otherwise than as a partner in a firm), he must satisfy the conditions in Part 1 of Schedule 11 to this Act.

3

Where the application is for the registration for gross payment of an individual or a company as a partner in a firm—

a

the applicant must satisfy the conditions in Part 1 of Schedule 11 to this Act (if an individual) or Part 3 of that Schedule (if a company), and

b

in either case, the firm itself must satisfy the conditions in Part 2 of that Schedule.

4

Where the application is for the registration for gross payment of a company (otherwise than as a partner in a firm)—

a

the company must satisfy the conditions in Part 3 of Schedule 11 to this Act, and

b

if the Board of Inland Revenue have given a direction under subsection (5), each of the persons to whom any of the conditions in Part 1 of that Schedule applies in accordance with the direction must satisfy the conditions which so apply to him.

5

Where the applicant is a company, the Board may direct that the conditions in Part 1 of Schedule 11 to this Act or such of them as are specified in the direction shall apply to—

a

the directors of the company,

b

if the company is a close company, the persons who are the beneficial owners of shares in the company, or

c

such of those directors or persons as are so specified,

as if each of them were an applicant for registration for gross payment.

6

See also section 65(1) (power of Board to make direction under subsection (5) on change in control of company applying for registration etc).

7

In subsection (5) “director” has the meaning given by section 67 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1).