Taxes Consolidation Act 1997 section 338

Provisions supplementary to sections 334 to 337

Section 338 provided the supplementary rules — definitions, anti-avoidance conditions, timing rules and procedural provisions — that supported the operation of the residential accommodation reliefs in sections 334 to 337.

The section underpinned the rented residential reliefs in four main ways:

• It defined the core terms — "certificate of reasonable cost", "house", "lease", "premium", "rent" and "total floor area" — used throughout sections 334 to 337.
• It contained anti-avoidance rules denying qualifying status where the lessee could acquire the house at an undervalue, or where a connected person occupied the house on non-arm's length terms.
• It imposed building standards and inspection requirements, and set out what construction, conversion and refurbishment work could be taken into account.
• It fixed the date on which expenditure was deemed to be incurred, excluded grant-funded expenditure, applied a CGT rule, and provided a right of appeal to the Appeal Commissioners.