(1)This section applies if—
(a)during a tax year a person lets qualifying holiday accommodation,
(b)the accommodation is let by the person—
(i)during the next tax year, or
(ii)during the next two tax years,
(c)the accommodation would (apart from this section) not be qualifying holiday accommodation—
(i)during the tax year mentioned in paragraph (b)(i), or
(ii)during both of the tax years mentioned in paragraph (b)(ii),
only because of a failure to meet the letting condition (see section 325(3)), and
(d)there was a genuine intention to meet the letting condition for the tax year within subsection (1)(c)(i) or each of the tax years within subsection (1)(c)(ii) (as the case may be).
(2)If the person makes an election in respect of that accommodation for any tax year in respect of which the failure mentioned in subsection (1)(c) occurs, the accommodation is to be treated as qualifying holiday accommodation for that tax year.
(3)Subsection (2) does not apply for the purposes of section 326 or subsection (1)(a).
(4)If an election is not made for the first of the tax years within subsection (1)(c)(ii), an election may not be made for the second.
(5)An election for a tax year must be made on or before the first anniversary of the normal self-assessment filing date for the tax year.
(6)References in subsection (1)(a) and (c) to qualifying holiday accommodation include accommodation treated as such under section 326.]
Textual Amendments
F1S. 326A inserted (with effect in accordance with Sch. 14 para. 6 of the amending Act) by Finance Act 2011 (c. 11), Sch. 14 para. 2(5)