Wayleaves - taxable as income?

Beenie · 16 February 2018 at 1:23PM

We have been told that we are eligible for an annual wayleave payment from the utility company. This is in respect of a telegraph pole in our front garden.

The payment is £40 a year.

Should this be classed as taxable income and declared to HMRC?

My gut reaction is that it is more akin to compensation for disturbance to our plants when contractors come along to do maintenance, but it would be nice to know what the law thinks.

agrinnall · 16 February 2018 at 1:40PM

In this example (electric line) it appears that the wayleave is treated as rental income and would therefore be taxable. Whether HMRC would ever bother you for £40 a year I don't know.

http://www.legislation.gov.uk/ukpga/2005/5/part/3/chapter/9/crossheading/charge-to-tax-on-rent-receivable-for-uk-electricline-wayleaves/enacted?view=plain

Pennywise · 16 February 2018 at 1:45PM

It is taxable as rental income but will be covered by the new "airbnb" tax allowance.

Beenie · 16 February 2018 at 2:01PM

I didn't know about the airbnb tax relief.

Is that in addition to the Rent-a-Room relief?

We don't rent rooms or anything, I'm just interested in the new reliefs that seem to come along.

Pennywise · 16 February 2018 at 4:15PM

Rent a room is for people having lodgers etc in their home as part of the family. The new relief is for the occasional AirBNB's renting out their entire house for a few weeks (whilst they move out), for say Wimbledon or a Golf competition, or their drive for parking, etc. The latter wouldn't qualify under rent a room relief, hence the new relief.

realaledrinker · 17 February 2018 at 12:53AM

Think the HMRC have slightly bigger fish to fry than this!

We get £12/yr. Afraid I have my cake and eat it on this one.

Wayleaves - taxable as income?

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