Chapter CISR14190
| Published date | 16 April 2016 |
| Record Number | CISR14190 |
| CISR14600 | Action guide contents |
FA04/S74 (2)(b) says that the following operations are within the scope of the Construction Industry Scheme
- ‘construction, alteration, repair, extension … of any works forming … part of the land, including … industrial plant’
This provision relates to industrial plant founded directly on the land rather than located in a building. The plant referred to includes
- petrochemical installations
- chemical plant
- external conveyer systems
- storage tanks
- silos
- pylons
- cranes or derricks
- pumps
- sewage farms
- water filtration plants
- mining winding gear.
Often there is no clear division between what can be considered to be ‘works forming part of the land’ (FA04/S74(2)(b)) on the one hand or ‘structures’ (FA04/S74 (2)(a)) on the other. The effect of these provisions, in combination with the other provisions of Section 74, is to bring within the Scheme all construction forming a normal part of the building and civil engineering industries.
CIS legislation does not seek to define ‘industrial plant’ but mentions it as an example of ‘work forming part of the land’ to which the Scheme applies. The purpose of citing it is to indicate that, if you are considering an installation founded on the land and which, by common understanding, is industrial plant, it is ‘works forming part of the land’ and its construction is caught by CIS.
It is not crucial whether an installation under consideration is strictly ‘industrial plant’ as defined in the construction or any other industry or, indeed, in the Taxes Acts. The important question is - does the installation being considered fall within the description ‘works forming part of the land’? If the answer is ‘Yes’ that is sufficient to bring the operation within the scope of the Scheme. If the installation happens to fulfil an industrial purpose you might reasonably conclude that it is ‘industrial plant’ but that is incidental.
Externally located industrial plantAs regards the repair of externally located industrial plant, this refers to structural repair only, for example, patching of a chemical retort or replacing a section of pipe-work. In contrast the repair or replacement of mechanical components, for example, work on valves in pumps, is not within the Scheme.
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Industrial plant installed in buildingsThe reference to industrial plant in FA04/S74 (2)(b) relates to industrial plant founded directly on the land as described above, that is, externally...
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