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HMRC internal manual

Business Income Manual

HM Revenue & Customs
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Particular trades: wayleaves

S22 Income Tax (Trading and Other Income) Act 2005, S45 Corporation Tax Act 2009

If a landowner is using their land for the purposes of a trade, the rent receivable for, and the expenses incurred in respect of, certain wayleaves may be brought into account in calculating the profits of the trade rather than being dealt with under the property income rules. This is at the option of the taxpayer.

The types of wayleave that will fall within this section include payments for allowing a cable or pipe to be run across the property used for the trade. It also includes a payment to allow, for example, the electricity company to install a pole or pylon to carry the cable. For detailed guidance on wayleaves and how they are taxed, see PIM1114 onwards.