Income Tax (Trading and Other Income) Act 2005 section 22

Payments for wayleaves

Section 22 allows a trader who receives wayleave rent on land used for their trade to include that rent and related expenses in their trading profits rather than treating them as property income.

• Where a trader carries on a trade on land subject to a wayleave and receives rent or incurs expenses in respect of it, the trader may elect to bring both the rent and expenses into the trading profit calculation instead of the property income calculation.
• This option is available provided no other receipts or expenses relating to that land are already being accounted for in any property business of the trader.
• The election applies whether the wayleave rent would otherwise be taxed under the electric-line wayleave rules (Chapter 9 of Part 3) or as part of a general property business.
• A wayleave covers any easement, servitude or right over land enjoyed in connection with electric, telegraph or telephone wires or cables (including supporting poles and pylons), pipes for conveying anything, or apparatus used with such pipes — and the provision applies equally to professions and vocations.