Readers' forum: Alternative basis

11 September 2018

Issue: 4663 / Categories: Forum & Feedback

Wayleave payments for business property.

A new client receives wayleave payments from electricity installations on his business property. He is self-employed and has previously included these receipts with his self-employment income (see HMRC’s Property Income Manual at here). However with the introduction of the property income allowance can he now separate out the wayleave ‘rent’ and not pay any tax on it? The amount of the wayleave income falls within the £1 000 allowance and he has no other rental income. I look forward to hearing from readers.

Query 19 229– Energetic.

Reply by ANA

ITTOIA 2005 s 346 provides an alternative basis of charge.

Rent received for a UK electric line wayleave is normally taxed as property income under ITTOIA 2005 s 344. However ITTOIA 2005 s 346 provides an alternative basis of charge at the option of the taxpayer. This provides that rent...

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