Discussion
insurance_jon said:
www.woodlands.co.uk/
I think you will find this helps!
Been there already
. It is about owning woodland for the enjoyment of using it for leisure purposes...I want to know about owning woodland for the money 
There was a tax dodge some years ago that made woodland attractive - I recall mention of Steve Davis having put a lot of money into it for that reason. Not being a tax expert I am a bit hazy on the details but it was something about choosing to have it taxed based on the income while the trees were growing (income being zero at that point) and then changing the basis of taxation just before the timber was felled and sold so that tax was calculated on land value.
I think they closed it off some time ago but I would guess that one of the accountants on this forum could fill in the specifics.
I think they closed it off some time ago but I would guess that one of the accountants on this forum could fill in the specifics.
Who said LICENSE?
Regarding Forestry (or Woodlands as the Inland Revenue call it - tax collectors have hated the word "Forest" since the days of Robin Hood).
Profits on woodland derived income are tax free (yipee). However, no loss relief or allowances for costs incurred during the initial phase of planting are available .
The is no Capital Gains Tax charged either on the sale of trees - felled or otherwise (double yipee). However, there might be a Capital Gain on the disposal proceeds relating to the "land" element of the original purchase. Therefore, having an accurate split of the original purchase cost between "Land " and "Wood" would be important.
Selling wood and wood related produce derived from a "Short Rotation Coppice" type development falls outside the normal "Woodland" tax exemptions.
Regarding Forestry (or Woodlands as the Inland Revenue call it - tax collectors have hated the word "Forest" since the days of Robin Hood).
Profits on woodland derived income are tax free (yipee). However, no loss relief or allowances for costs incurred during the initial phase of planting are available .
The is no Capital Gains Tax charged either on the sale of trees - felled or otherwise (double yipee). However, there might be a Capital Gain on the disposal proceeds relating to the "land" element of the original purchase. Therefore, having an accurate split of the original purchase cost between "Land " and "Wood" would be important.
Selling wood and wood related produce derived from a "Short Rotation Coppice" type development falls outside the normal "Woodland" tax exemptions.
I have a close friend who works for one of the big forrestry agencies. He has complained recently that they are srtuggling to make money. It is particularly difficult to make money out of smaller plots. It is true that money earned from forrestry is tax free, but I believe that the main dodge is buying large forrests and passing them on to relatives to avoid inherritance tax.
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