Taxes Consolidation Act 1997 section 372Z

Provisions supplementary to sections 372X and 372Y

Section 372Z sets out the definitions, qualifying conditions, anti-avoidance rules and procedural provisions that underpin the offshore islands residential accommodation reliefs in sections 372X and 372Y.

• Defines the core terms (certificate of reasonable cost, house, total floor area) and requires premises to meet the Minister for the Environment's construction and services standards.
• Imposes anti-avoidance rules denying relief where a lease allows a below-market buy-out or where a connected person occupies the house on non-arm's-length terms.
• Limits qualifying expenditure to construction work actually carried out in the qualifying period and disregards any amount met by the State or a public authority.
• Prevents double relief, applies section 555 so that deductions and deemed rent feed into the capital gains computation, and provides a right of appeal to the Appeal Commissioners.