1

This Order may be cited as the Finance Act 2004, Section 61(2), (Relevant Percentage) Order 2007 and shall come into force on 1st February 2007.

NOTES
Initial Commencement
Specified date

Specified date: 1 February 2007: see above.

2

2

For the purposes of section 61(1) of the Finance Act 2004 (deductions on account of tax from contract payments) the relevant percentage is—

(a)    20% if the person for whose labour (or for whose employees' or officers' labour) the payment in question is made is registered for payment under deduction, or

(b)    30% if that person is not so registered.

NOTES
Initial Commencement
Specified date

Specified date: 1 February 2007: see art 1.

Signature

Kevin Brennan

Claire Ward

Two of the Lords Commissioners of Her Majesty's Treasury

11th January 2007

EXPLANATORY NOTE

EXPLANATORY NOTE (This note is not part of the Orders)

Chapter 3 of the Finance Act 2004 (c 12) establishes the construction industry scheme which provides for certain payments under construction contracts to be made under deduction of sums on account of tax. This Order specifies the relevant percentage of the payment to be deducted.

This Order imposes no new costs on business.

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