The Income Tax (Construction Industry Scheme) (Amendment) Regulations 2015

Amendment of the Income Tax (Construction Industry Scheme) Regulations 2005

2.—(1) The Income Tax (Construction Industry Scheme) Regulations 2005(1) are amended as follows.

(2) In regulation 4 (monthly return)(2) omit paragraphs (10) and (11).

(3) At the end of regulation 56(5) (application of sums deducted under section 61)(3) insert—

“but this paragraph does not apply to a qualifying sub-contractor within paragraph (5A).

(5A) A qualifying sub-contractor is within this paragraph if—

(a) that sub-contractor is subject to a winding-up under Part 4 of the Insolvency Act 1986(4), and

(b) that sub-contractor has—

(i) ceased trading,

(ii) permanently ceased making payments to which section 61 of the Act(5) applies in its capacity as a contractor, or

(iii) ceased trading and permanently ceased to make any payments within sub-paragraph (b)(ii).

(5B) Where a qualifying sub-contractor is within paragraph (5A), the Commissioners for Her Majesty’s Revenue and Customs may repay any sum deducted under section 61 of the Act to that sub-contractor during the tax year in which the deduction was made.”.

(1)

.S.I. 2005/2045 (the principal Regulations) relevant amending instruments are S.I. 2011/2391 and 2013/620.

(2)

Regulation 4 has been amended by article 3 of S.I. 2011/2391.

(3)

Regulation 56(5) has been amended by regulation 4 of S.I. 2013/620.

(4)

1986 c. 45.

(5)

“The Act” is defined in regulation 2 of the principal Regulations as meaning the Finance Act 2004.