The appeal judges allowed her appeal and quashed her conviction following criticism of the trial judge's summing up.
Newland was sentenced in November, as she disguised her voice and had the complainant blindfold herself so she couldn't identify Newland as a woman.
In the previous trial, the court heard the defendant accuse Newland of creating a fake Facebook profile under the male alias "Kye Fortune", so Newland could build an intimate relationship with her.
They spent many hours on the phone and 100 hours in each other's company in hotels and the complainant's flat. The accuser still believing Newland was a man.
The pair had sex about 10 times until the complainant ripped off her mask and in disbelief saw Newland wearing a prosthetic penis.
Newland claimed her accuser, always knew she was pretending to be a man as they engaged in role play while struggling with their sexuality.
She said no blindfold was used and she did not strap bandages to her chest and wear a woollen hat and swimsuit.