What is a UK electric-line wayleave under section 345 of ITTOIA 2005?

Under section 345, a UK electric-line wayleave is an easement, servitude or right in or over land in the United Kingdom enjoyed in connection with an electric, telegraph or telephone wire or cable. This includes rights relating to supporting poles, pylons and associated apparatus such as transformers. Rent received for such a right falls within this definition.

What conditions must be met for a payment to qualify as rent for a UK electric-line wayleave?

Two conditions must be met. First, the payment must be in respect of an easement, servitude or right in or over land situated in the United Kingdom. Second, that right must be enjoyed in connection with an electric, telegraph or telephone wire or cable, including supporting structures and associated apparatus such as transformers.

How broadly is 'rent' defined in section 345 ITTOIA 2005?

Rent is defined broadly under section 345. It includes conventional rental payments, receipts of the kind described in section 266(3) dealing with income from land, and any other receipt that is in the nature of rent. This ensures that differently structured payments are still caught, provided they are essentially rental in character.

Does section 345 apply to payments for transformers or pylons on UK land?

Yes. Section 345 extends to rights enjoyed in connection with supporting structures such as poles or pylons, and any apparatus used in connection with the wire or cable. Transformers are specifically included as apparatus. Payments for such rights over UK land qualify as rent receivable for a UK electric-line wayleave.

Income Tax (Trading and Other Income) Act 2005 section 345

Meaning of "rent receivable for a UK electric-line wayleave"

Section 345 defines what counts as "rent receivable for a UK electric-line wayleave" for income tax purposes, covering payments for rights over UK land used in connection with electric, telegraph or telephone infrastructure.

Rent qualifies as being for a UK electric-line wayleave if it is received for an easement, servitude or right over land in the United Kingdom that is used in connection with an electric, telegraph or telephone wire or cable.
The definition extends to rights enjoyed in connection with supporting structures such as poles or pylons, and any apparatus used in connection with the wire or cable, including transformers.
The term "rent" is broadly defined to include not only conventional rent but also receipts of the kind described in section 266(3) and any other receipt that is in the nature of rent.
The section uses the term "wayleave" to describe the right in question, reflecting common practice, and includes the Scottish legal term "servitude" alongside "easement" to cover all UK jurisdictions.

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