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It has been widely reported that holiday pay does continue to accrue during periods of absence, and that the accrued amount can be carried over into the next leave year.
However this is all in relation to the Employees statutory entitlement, and not any other additional contractual leave that the employer may offer.
In a recent case, it was discussed if additional annual leave is also automatically carried over as well. The Employment Appeal Tribunal ruled that it was not, and that any additional leave over and above the Employees statutory entitlement can only be carried over if it has been mutually agreed between the parties. In the absence of any agreement, the additional holiday will not carry over.