Readers’ Forum: Construction industry scheme

My client and his wife are property investors using companies to buy residential property with their own capital and bank finance and letting them to unconnected parties on a long term basis.

For commercial reasons and preferences of lenders the couple have ended up with three companies all of which undertake this activity with two to three properties owned by each company.

A NewCo has now been set up by the couple for the acquisition of a small hotel to be converted into a number of residential apartments. Cost of £1m are anticipated for the demolition and conversion of the building.

I am now considering NewCo’s position as far as CIS registration is concerned. I am wondering whether the other entities owned by the couple which are in my view clearly property investments are relevant to the odd project where they will be...