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HMRC internal manual

Construction Industry Scheme Reform Manual

The Scheme: secondary legislation: regulation 22

This regulation deals with the arrangements for businesses involved in construction projects for their own use - known informally as ‘own-build’.

  1. A payment under a construction contract is not a contract payment if it is made by a person covered by FA04/S59 (1)(l) in respect of premises to be used for the purposes of the business of
  • the person making the payment: SI2005/2045 reg 22(1)(a).
  • another company within the same group, or another company in which the business holds at least 50% of the shares: SI2005/2045 reg 22(1)(b).
  1. For the purposes of (1) -
  • own-build provisions cannot be applied where the property involved in the construction operation is for sale or let, except where the sale or letting of that property is purely incidental to the business of that person, or is held as an investment: SI2005/2045 reg 22(2)(a).
  • in determining whether a property is used for the purposes of a business, incidental use of that property by others can be disregarded,: SI2005/2045 reg 22(2)(b).
  • ICTA88/S413 (3)(a) determines whether two companies are within the same group: SI2005/2045 reg 22(2)(c).