CISR17215 | The Scheme: Secondary legislation: Regulation 20A

This regulation deals with payments under a construction contract made by a landlord to a tenant or a prospective tenant. A payment made under a construction contract is not a contract payment if the following conditions are met —

• the payment is made by or on behalf of the landlord (as defined in SI2005/2045 Regulation 20A(2)(b))

• the person receiving the payment is a tenant/sub-tenant or prospective tenant/sub-tenant of the landlord

• the payment is for construction operations agreed in connection with a lease or an enforceable agreement to enter into a lease

• the tenant that occupies or will occupy the property will carry out the construction operations itself, or a third person will carry out the construction operations under a contract with the tenant

• the payment is for construction operations relating to works intended primarily for the benefit and use of the tenant that occupies or will occupy the property under the lease

ENABLING PROVISION – FA04/S60 (7)