Sarah Bradford outlines the potential tax advantages for those considering an investment in commercial woodlands.
Once upon a time in a land where there was a schedular system of income tax, the commercial occupation of woodlands was charged to tax under Sch B. However, Finance Act 1988 consigned Sch B to the history books, repealing Sch B and taking profits and gains arising from commercial woodlands outside the scope of both income tax and corporation tax.
Woodlands continue to benefit from tax privileges, including income and corporation tax exemptions, an exemption from capital gains tax (CGT) and the possibility to benefit from business property relief (BPR) or agricultural property relief (APR) for inheritance tax (IHT) purposes.
Income tax and corporation tax
The commercial
