City break at Butlin's, taking time out (8)
I believe the answer is:
istanbul
'city' is the definition.
(Istanbul is an example)
'at butlin's taking time out' is the wordplay.
'taking' suggests deleting specific letters.
'time' becomes 't' (abbreviation).
'out' is an anagram indicator (out can mean wrong or inaccurate).
'at'+'butlins'='atbutlins'
'atbutlins' with 't' taken out is 'abutlins'.
'abutlins' with letters rearranged gives 'ISTANBUL'.
'break' is the link.
I am not very happy about this link. It may belong to another bit of the clue.
(Other definitions for istanbul that I've seen before include "Nail bust in the Turkish city" , "Stub nail in Turkey" , "Modern Byzantium" , "Eurasian city" , "Modern name of Constantinople" .)