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Does commercial tenant have to register under CIS?

A client needs to pay a substantial amount for roof repairs to their rented premises,

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the landlord has agreed to pay half of these costs. The landlords solicitors want to charge the tenant a fee 'to check there are no stamp duty land tax issues as well as whether Tenant needs to be registered under a Construction Team Industry Scheme (where they could because the payments are being made by the landlord to Tenant for doing works to the roof) which  may necessitate that registration to avoid the landlord deducting tax at source on the payment'.   

Is this usual? The tenant will use an external company to repair the roof, pay the bill and then get half back from the landlord, does stamp duty and CIS become part of the transaction as well?

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By Wanderer
12th Feb 2021 16:52

Construction TEAM Industry Scheme, that's a new one!

1. Is you client in the construction industry?
2. If not does your client spend over £1m per annum on construction work?

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Replying to Wanderer:
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By [email protected]
12th Feb 2021 18:14

Wanderer wrote:

Construction TEAM Industry Scheme, that's a new one!

1. Is you client in the construction industry?
No
2. If not does your client spend over £1m per annum on construction work?

No
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By Paul Crowley
13th Feb 2021 03:13

That demonstrates why solicitors should never get involved in things they do not understand.

Do solicitors ever subscribe to accounts and tax helplines?

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RLI
By lionofludesch
13th Feb 2021 09:25

I vote no.

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Replying to lionofludesch:
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By [email protected]
15th Feb 2021 09:24

I found this on stamp duty site, 'SDLT can also be applied to certain other payments made under the terms of a lease, and also to ‘chargeable considerations’, such as a commercial tenant’s obligations to carry out work or services on a rented property'.

If the value of the repair is below £150,000 would that mean zero SDLT?

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