(1) Subject to this section, the income accruing to any person from the construction and sale by him or her, or on his or her behalf, of residential accommodation in Saint Lucia shall be exempt from tax.
(2) Exemptions under subsection (1) shall not apply unless—
(a) the construction is in an approved sub-division as certified by the Minister of Finance and Planning;
(b) the cost of construction of such residential accommodation does not exceed $200,000 per unit of housing or such other sum as may be prescribed;
(c) the number of houses constructed and sold in any income year is not less than 5;
(d) the houses are sold within a period of 10 years after completion of construction.
(3) Any rental income accruing to the person referred to under subsection (1) from the leasing of such residential accommodation during a period of 10 years after completion of construction shall be exempt from tax provided the amount of rental does not exceed $500 per month or if higher, the proportion that $500 bears to the total monthly rental.
(4) In ascertaining the income which is exempt under this section, any capital allowances to which the owner would have been entitled under Part 2 of Schedule 2 shall be taken into account in the same manner as if the income were chargeable to tax.
(5) In ascertaining the income which is exempt under this section, sections 37 and 38 shall apply.
(Substituted by Act 11 of 1998)