Did you know that there are considerable tax advantages
- The income and profits from timber sales in woodlands managed commercially are free from both Income and Corporation Tax.
- The gain in value of standing timber, whether from the physical growth of the trees or rises in timber prices, is entirely free from tax.
- The entire value of commercial woodland, including both the land and the trees, attracts Business Property Relief, currently at 100%, once it has been owned for two years. Provided this condition is met, there is no Inheritance Tax liability.
Its ethical and sustainable. It even has good returns for example http://www.forestryinvestments.co.uk/ claim that they are suitable for SIPPs and claim to have a 22% IRR return.
In a Moneywise article they say returns have been around 19% but in the long term 5% is more realistic