Citation and commencement

1. These Regulations may be cited as the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2007 and shall come into force on 26th March 2007.

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

2. Amend the Income Tax (Construction Industry Scheme) Regulations 2005( 3 ) as follows.

3. —(1) Amend regulation 10 (return and certificate if amount may be unpaid) as follows.

(2) In paragraph (1) for “A or B” substitute “A, B or C”.

(3) After paragraph (3) insert—

“ (3A) Condition C is that—

(a) the contractor has made a return under regulation 4 showing the amount which the contractor is liable to pay under regulation 7 for that tax period, but

(b) the contractor has not paid the full amount shown in the return. ” .

(4) In paragraph (4) at the beginning insert “If condition A or B is met”.

(5) In paragraph (5) for “If the notice extends to two” substitute—

“ If—

(a) the notice extends to, or

(b) condition C is met in,

two ” .

(6) In paragraph (6) after “(4)” insert “or if condition C is met”.

4. In regulation 19 (work carried out on land owned by the person to whom payment is made), in paragraph (2)(a) after “Act” insert “applies”.

5. —(1) Amend regulation 20 (reverse premiums) as follows.

(2) In paragraph (1) at the end insert “or section 99 of the Income Tax (Trading and Other Income) Act 2005( 4 ) (reverse premiums)”.

(3) In paragraph (2) for “does” substitute “and section 100(1) of the Income Tax (Trading and Other Income) Act 2005 (excluded cases) do”.

6. In regulation 22 (payments in respect of property used for business), in paragraph (2)(a) after “let” insert “(except where the sale or letting of that property is purely incidental to the business of that person)”.