My client is not a property developer but holds a large number of rental properties and has been told that there may be a possibility of a need to register under the construction industry scheme (CIS) in respect of work being done on the properties. What are the implications?

There is a possibility that registration would be required under the ‘deemed contractor’ rules.

The legislation is contained at section 59(1) (b) to (l) Finance Act 2004 (FA2004). This brings into the scope of CIS any businesses which spend over a certain amount on construction operations. (It also includes certain public bodies and other specified bodies).