Part 3Income tax, corporation tax and capital gains tax
Chapter 3Construction industry scheme
Supplementary
74Meaning of “construction operations”
1
In this Chapter “construction operations” means operations of a description specified in subsection (2), not being operations of a description specified in subsection (3); and references to construction operations—
a
except where the context otherwise requires, include references to the work of individuals participating in the carrying out of such operations; and
b
do not include references to operations carried out or to be carried out otherwise than in the United Kingdom (or the territorial sea of the United Kingdom).
2
The following operations are, subject to subsection (3), construction operations for the purposes of this Chapter—
a
construction, alteration, repair, extension, demolition or dismantling of buildings or structures (whether permanent or not), including offshore installations;
b
construction, alteration, repair, extension or demolition of any works forming, or to form, part of the land, including (in particular) walls, roadworks, power-lines, electronic communications apparatus, aircraft runways, docks and harbours, railways, inland waterways, pipe-lines, reservoirs, water-mains, wells, sewers, industrial plant and installations for purposes of land drainage, coast protection or defence;
c
installation in any building or structure of systems of heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection;
d
internal cleaning of buildings and structures, so far as carried out in the course of their construction, alteration, repair, extension or restoration;
e
painting or decorating the internal or external surfaces of any building or structure;
f
operations which form an integral part of, or are preparatory to, or are for rendering complete, such operations as are previously described in this subsection, including site clearance, earth-moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works.
3
The following operations are not construction operations for the purposes of this Chapter—
a
drilling for, or extraction of, oil or natural gas;
b
extraction (whether by underground or surface working) of minerals and tunnelling or boring, or construction of underground works, for this purpose;
c
manufacture of building or engineering components or equipment, materials, plant or machinery, or delivery of any of these things to site;
d
manufacture of components for systems of heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection, or delivery of any of these things to site;
e
the professional work of architects or surveyors, or of consultants in building, engineering, interior or exterior decoration or in the laying-out of landscape;
f
the making, installation and repair of artistic works, being sculptures, murals and other works which are wholly artistic in nature;
g
signwriting and erecting, installing and repairing signboards and advertisements;
h
the installation of seating, blinds and shutters;
i
the installation of security systems, including burglar alarms, closed circuit television and public address systems.
4
The Treasury may by order made by statutory instrument amend either or both of subsections (2) and (3) by—
a
adding,
b
varying, or
c
removing,
any description of operations.
5
No statutory instrument containing an order under subsection (4) shall be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.