Corporation Tax Act 2009

268 Under-used holiday accommodation: averaging elections

(1) This section applies if during an accounting period a company lets both—

(a) qualifying holiday accommodation, and

(b) accommodation that would be qualifying holiday accommodation if the letting condition (see section 267(3)) were met in relation to it (“under-used accommodation”).

(2) The company may make an election for the accounting period specifying—

(a) the qualifying holiday accommodation, and

(b) any or all of the under-used accommodation.

(3) The under-used accommodation so specified is treated as qualifying holiday accommodation for the accounting period if the average of the number of let days for the accounting period of all the accommodation specified in the election is at least 70.

(4) “The number of let days” for an accounting period of any accommodation is the number of days during the relevant period for which it is commercially let by the company as holiday accommodation to members of the public.

(5) Qualifying holiday accommodation may not be specified in more than one election for an accounting period.

(6) An election for an accounting period must be made within the period of two years beginning at the end of the accounting period.