An easement is a right enjoyed by a person over land that they
do not own. Landowners may receive payments for easements from
electricity and gas concerns, or other similar undertakings, for
easements in connection with cables, pylons etc. on or over their
land.
The definition of ‘easement’ in ICTA88/S119 (3)
which is referred to in ICTA88/S120 (5) goes wider than the
ordinary meaning of the word ‘easement’. See the
comments of Uthwhat J at pages 329 and 330 of Mosley v George
Wimpey Ltd [1945] 27TC314.
It is not helpful to use a word that has a particular legal
meaning to describe something else. So in ITTOIA05 the term
‘wayleave’ is used to describe the right in respect of
which the rent is received. In practice this is how most of the
payments are usually described.
If a landowner is using their land for the purposes of a trade,
the rent receivable for certain wayleaves may be taxed as trading
income rather than property income. This is at the option of the
taxpayer.
For detailed guidance on wayleaves and easements and how they
are taxed see:
