Commentary on Sections Overview Overview Section 326: Under-used holiday accommodation: averaging elections
1344.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 325(3) is met. It is based on section 504(6) to (8) of ICTA.
1345.Subsection (1) introduces a new term to denote this accommodation: “under-used accommodation”.
1346.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 tax year to the relevant period (as defined in section 324). See Change 77 in Annex 1.
1347.Subsection (5) prevents the same accommodation from being used more than once in an averaging calculation.
1348.Subsection (6) reflects the rewrite approach to aligning time limits with the Self Assessment cycle.