21(1)Section 503 of that Act (letting of furnished holiday accommodation), except so far as it applies for the purposes of corporation tax, shall have effect with the following modifications.
(2)Subsection (1) shall have effect as if for “380 to 390, 393, 393A(1), 401” there were substituted “ 379A to 390 ” and as if the following paragraph were substituted for paragraph (a)—
“(a)any Schedule A business, so far as it consists in the commercial letting of furnished holiday accommodation in the United Kingdom, shall be treated as a trade the profits or gains of which are chargeable to tax under Case I of Schedule D; and”.
(3)The following subsection shall be deemed to be substituted for subsection (2)—
“(2)In its application by virtue of subsection (1) above section 390 shall have effect as if the reference to the trade the profits of which are chargeable to tax under Case I or II of Schedule D were a reference to the Schedule A business so far as it is treated as a trade.”
(4)Subsection (5) shall be deemed to be omitted.