(1) Chapter 1 of Part 9 of the Principal Act is amended -

(a) in section 268(13) -

(i) in paragraph (a) by substituting "subject to paragraphs (b) and (c)" for "subject to paragraph (b)",

(ii) in paragraph (b) by substituting "31 December 2006" for "31 July 2006", and

(iii) by inserting the following after paragraph (b):

"(c) This subsection shall not apply as respects expenditure incurred on or before 31 July 2008 on the construction or refurbishment of a holiday cottage if -

(i) the conditions of subparagraph (i), (ii) or (iii), as the case may be, of paragraph (b) have been satisfied,

(ii) subject to paragraphs (a) and (b) of section 270(7) -

(I) the person who is constructing or refurbishing the holiday cottage has, on or before 31 December 2006, carried out work to the value of not less than 15 per cent of the actual construction or, as the case may be, refurbishment costs of the holiday cottage, and