Subject of story gone on vacation (5)
I believe the answer is:
liege
'subject' is the definition.
(I've seen this before)
'story gone on vacation' is the wordplay.
'story' becomes 'lie' (story can mean a fabrication).
'gone on' becomes 'gone' (going is a kind of going on).
'vacation' says to hollow out the word (remove centre letters) (middle letters vacate the word).
'gone' with its middle taken out is 'ge'.
'lie'+'ge'='LIEGE'
'of' is the link.
(Other definitions for liege that I've seen before include "A person holding land under feudalism" , "Old sovereign" , "Loyal vassal" , "old lord" , "European province" .)