The Income Tax (Construction Industry Scheme) Regulations 2005

Work carried out on land owned by person to whom payment is made

19.—(1) A payment under a construction contract is not a contract payment if—

(a) the conditions prescribed in paragraph (2) in relation to the person making the payment are satisfied, and

(b) the conditions prescribed in paragraph (3) in relation to the payment are satisfied.

(2) The conditions prescribed in relation to the person making the payment are that—

(a) the person is one to whom section 59(1)(a) of the Act, and

(b) the person has been approved by the Commissioners for Her Majesty’s Revenue and Customs for the purposes of this regulation.

(3) The conditions prescribed in relation to the payment are that the payment—

(a) is made to a body or person in respect of construction operations carried out by that body or person in relation to—

(i) property owned by that body or person, or

(ii) agricultural property of which that body or person is a tenant, and

(b) is not one made under a construction contract in respect of which the total payments so made (excluding the direct cost of materials) exceed or are likely to exceed £1000.

(4) For the purposes of paragraph (3)(a)(ii) “agricultural property” means—

(a) agricultural land or pasture,

(b) woodland or any building used in connection with the intensive rearing of livestock or fish if the woodland or building is occupied with agricultural land or pasture and the occupation is ancillary to that of the agricultural land or pasture,

(c) cottages, farm buildings and farm houses, together with the land occupied with them, as are of a character appropriate to the property, and

(d) land and buildings used for breeding and rearing horses on a stud farm and grazing of horses in connection with those activities.