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A landlord will sometimes make a payment to a tenant in connection with a lease.Ìý Many ofÌýthese payments are now treated as falling outside the definition of a contract payment either un»å±ð°ùÌýSI2005/2045 Regulation 20´¡Ìý(CISR14048)Ìýor Regulation 20 (seeÌýCISR14040).Ìý Not all payments made by landlords to tenants for construction operationsÌýfall outside the scope of CIS because both RegulationsÌý20 and 20A have strict conditions needed to be met for them to apply.Ìý

Prior to 6 April 2024,Ìýpayments made by commercial landlords to tenants were within the scope of theÌýCIS for building works that are the responsibility of the landlord. Others were exempt, principally those directly for the tenant’s benefit paid as an inducement to enter a lease (reverse premiums)Ìýunder Regulation 20.ÌýGuidance on Regulation 20 can be found atÌýCISR14040.Ìý

Regulation 20A does not replace Regulation 20 but rather,ÌýsupplementsÌýit.ÌýRegulation 20A does not require the payment to be made as an inducement for the tenants to enter a lease. It can apply to building works that are the responsibility of the landlord and where the landlord also benefits from the works if the conditions are met.

If all ofÌýa payment meets the conditions of Regulation 20A or Regulation 20Ìýit will not be a contract paymentÌýunder the CIS.ÌýHowever, if only part of a payment qualifies, or if none of the payment qualifies under either provision, then the payment will be a contract payment under the CIS.