CISR14047 - The Scheme: construction operations: Payments made by landlord to tenant payments – Overview

A landlord will sometimes make a payment to a tenant in connection with a lease.  Many of these payments are now treated as falling outside the definition of a contract payment either under SI2005/2045 Regulation 20A (CISR14048) or Regulation 20 (see CISR14040).  Not all payments made by landlords to tenants for construction operations fall outside the scope of CIS because both Regulations 20 and 20A have strict conditions needed to be met for them to apply. 

Prior to 6 April 2024, a payment from a landlord to tenant for construction operations would only be outside the scope of CIS if it qualified as a reverse premium under Regulation 20. Guidance can be found at CISR14040. 

It should be noted that Regulation 20A does not replace Regulation 20 but rather, supplements it. If all of the payment qualifies under Regulation 20A or Regulation 20 then it will be outside the scope of the CIS.