Tax Efficiency in Commercial Woodlands

Little girl with backpack holding stick in her hand playing with rock

For a range of reasons, perhaps including the tax changes imposed on landlords, some investors have looked to woodland as a potential investment. Indeed the commercial occupation of woodlands in the UK or EEA benefits from favourable treatment in respect of income tax, corporation tax, capital gains tax and inheritance tax.

To benefit from these tax treatments the woodland must be occupied commercially and there are of course other provisions you must meet. It is therefore important to involve your tax advisors in decision-making and throughout the venture.

It may also be worth mentioning that Christmas tree crops are taxable as they fall within market gardening or farming, and are not exempt woodlands.

For those considering investing in commercial woodlands, it is important to seek advice from both an independent financial advisor and a specialist forestry broker before making any decisions. It is, after all, rather important to ‘see the wood for the trees’.

If you’d like any further information please contact Green & Co on 01633 871122.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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