Income Tax (Trading and Other Income) Act 2005 section 305

Information about effective duration of lease

Section 305 gives HMRC the power to require any person who holds information relevant to determining the effective duration of a lease to provide that information.

• HMRC can issue a notice to any person who holds information relevant to determining how long a lease effectively lasts.
• The notice requires the person to supply the relevant information within a time period specified in the notice.
• This power supports the rules that tax property income differently depending on the duration of a lease, particularly the premium rules for short leases.
• The power to issue the notice rests with any officer of HMRC, rather than being restricted to a specific grade of officer such as an inspector of taxes.