Income tax is charged on rent receivable for a UK electric-line wayleave.
(1)For the purposes of this Chapter rent is receivable for a UK electric-line wayleave if—
(a)it is receivable in respect of an easement, servitude or right in or over land in the United Kingdom, and
(b)the easement, servitude or right is enjoyed in connection with an electric, telegraph or telephone wire or cable.
(2)The reference to the enjoyment of an easement, servitude or right in connection with an electric, telegraph or telephone wire or cable includes (in particular) its enjoyment in connection with—
(a)a pole or pylon supporting such a wire or cable, or
(b)apparatus used in connection with such a wire or cable.
(3)In this Chapter “rent” includes—
(a)a receipt mentioned in section 266(3), and
(b)any other receipt in the nature of rent.
(1)Rent receivable for a UK electric-line wayleave is not chargeable to tax under this Chapter for a tax year if—
(a)a person carries on a UK property business in relation to some or all of the land to which the wayleave relates, and
(b)receipts (other than rents receivable for UK electric-line wayleaves) in respect of some or all of that land are brought into account in calculating the profits of the business for the tax year.
(2)In such a case, the rent receivable for the UK electric-line wayleave is brought into account in calculating the profits of the person's UK property business.
(3)The rules for determining whether an amount is chargeable to tax under this Chapter also need to be read with section 22(2) (payments for wayleaves if person carries on a trade).
(4)That subsection secures that an amount which would otherwise be chargeable to tax under this Chapter may be brought into account instead in calculating the profits of a trade.
Tax is charged under this Chapter on the full amount of the profits arising in the tax year.
The person liable for any tax charged under this Chapter is the person receiving or entitled to the rent.