Taxes Consolidation Act 1997 section 329

Provisions supplementary to sections 325 to 328

Section 329 set out supplementary definitions and operational rules for the rented residential accommodation reliefs in sections 325 to 328, which had provided income tax relief for expenditure on the construction, conversion or refurbishment of houses let under qualifying leases in certain designated areas.

The section did four main things, summarised below:

• Defined the key terms used across sections 325 to 328, including "certificate of reasonable cost", "house", the lease-related terms and "total floor area".
• Imposed anti-avoidance restrictions which disqualified leases containing buy-out clauses and houses occupied by connected persons under non-arm's-length terms.
• Required compliance with building standards set by the Minister for the Environment and Local Government and permitted ministerial inspection of the houses.
• Provided the operational mechanics, including timing of expenditure, exclusion of grant-aided amounts, capital gains tax interaction with the deductions, and appeal rights.