Corporation Tax Act 2009 section 268A

Under-used holiday accommodation: letting condition not met

Section 268A allows a company to elect that a furnished holiday let property continues to qualify as holiday accommodation for up to two further accounting periods, even if it fails to meet the 105-day letting condition in those later periods.

• A property that qualified as furnished holiday accommodation in a previous accounting period may still be treated as qualifying even if it does not meet the letting condition of 105 days in a later period.
• The company must make an election in the first accounting period in which the letting condition is not met, and this election can cover up to two consecutive accounting periods.
• The election cannot be made if an averaging election under section 268 has already been made for the same accounting period.
• The election must be submitted within two years of the end of the accounting period to which it relates, and it applies only to the specified accounting period.