530A Principal to whom relevant contracts tax applies

Summary

This section sets out the range of principals obliged to operate RCT.

Details

(1) Subject to subsections (2) and (3) the following principals are obliged to operate RCT:

(1)(a) A principal who is a subcontractor in respect of the whole or part of the relevant contract.

(1)(b) A person carrying on a business that include the erection of buildings, the development of land or the manufacture, treatment or extraction of construction materials.

A person carrying on a meat processing business in an approved premises.

A person carrying on a business that includes wood processing and forestry operations.

(1)(c) A person connected with a company carrying on a business mentioned in paragraph (b).

(1)(d) A local authority, a public utility society within the meaning of section 2 of the Housing Act 1966 or a body approved under section 45 of that Act or section 7 of the Housing (Miscellaneous Provisions) Act 1979.

(1)(e) A Minister of the Government.

(1)(f) Any board or body established by or under statute or any board or body established under royal charter and funded wholly or mainly by the State.

(1)(g) A person carrying on any gas, water, electricity, hydraulic power, dock, canal or railway undertaking.

(1)(h) A person who carries out the installation, alteration or repair in or on any building or structure of systems of telecommunications.

(2) A principal shall not be regarded as a person to whom subsection (1)(b) applies, if during the course of their business the only buildings erected, or land developed is for their own use or for the use of their employees.

(3)(a) A principal shall not be regarded as a person to whom subsection (1)(c) applies, if a payment to a subcontractor is made solely in connection with construction operations carried out in or on buildings or land which is for their own use or for the use of their employees, and the person does not carry on a business mentioned in paragraph (1)(b)(i).

(3)(b) Where a principal comes within subsection (1)(c) by reason of the fact that they are connected with a company carrying on a business specified in paragraph (1)(b)(i), paragraph (a) shall only apply where the principal is a company.

Relevant Date: Finance Act 2025