Corporation Tax Act 2009 section 45

Payments for wayleaves

Section 45 allows a trading company that receives wayleave payments on land where it carries on its trade to include those payments in its trading profits instead of treating them as property income.

• Where a company trades on land over which a wayleave has been granted, and the only property-type income from that land is the wayleave rent, the company can elect to treat the wayleave rent and related expenses as part of its trading profits.
• This option applies whether the wayleave rent would otherwise be taxed as part of a property business or under the separate charge on UK electric-line wayleaves.
• A wayleave covers any easement, servitude or right over land connected with electric, telegraph or telephone wires and cables (including poles and pylons), pipes, or related apparatus.
• Rent is broadly defined to include not just formal rent payments but any receipt in the nature of rent connected with the wayleave.