Commentary on Sections Overview Overview Section 268: Under-used holiday accommodation: averaging elections
961.This section allows accommodation that would be “qualifying holiday accommodation”, were it not simply for insufficient actual letting, nevertheless to qualify if, on average, the letting condition in section 267(3) is met. It is based on section 504(6) to (8) of ICTA. The corresponding rule for income tax is in section 326 of ITTOIA.
962.Subsection (1) introduces a new term, “under-used accommodation”, to denote this accommodation.
963.Subsection (4) introduces a change. This changes the period over which lettings are averaged for the purpose of treating infrequently let property as qualifying holiday accommodation from the accounting period to the relevant period (as defined in section 266). See Change 52 in Annex 1.