It is all too easy for landlords and tenants not to realise that
their deal can fall foul of the Construction Industry Scheme (CIS)
requiring contractors to withhold tax from sub-contractors,
designed to make sure that sub-contractors income tax is paid.
How does this happen? – A landlord can be deemed
to be a contractor when they spend over an average of
£1,000,000 a year for three consecutive years on construction
What constitutes a construction operation? – This
is quite wide and includes all usual construction works and even
painting and decorating etc.
What are the implications for landlords and tenants?
– Where an agreement for lease provides for the tenant
to carry out works at the landlord's cost, the arrangement
could fall within the CIS if the landlord is a contractor (e.g.
because of its history of spending money on construction
operations). In those circumstances, the tenant would be a
sub-contractor for the purposes of the CIS. For the tenant to
receive its money gross the parties need to comply with the CIS,
and we have written a longer client alert on this which you can
read by following
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The Technology and Construction Court (TCC) decided that the costs of claims consultants assisting in adjudication enforcement proceedings can be recovered as disbursements, assuming that those consultants acted in the adjudication.
The requirements of a valid payment notice issued under a construction contract were considered in a previous update: "A Payment Notice? Be Clear?" with reference to the case of Surrey and Sussex Healthcare NHS Trust v Logan Construction (South East) Ltd  ("Surrey and Sussex") a decision of the English High Court.
VL's appeal was against a decision by LBC on a review of an earlier refusal to provide VL and her family with housing on the grounds that she was not homeless, or threatened with homelessness, finding she had accommodation available to her in Portugal.
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