Inheritance Tax and Capital Gains Tax Relief for Woodland Owners

Inheritance Tax and Capital Gains Tax Relief for Woodland Owners

HMRC have recently published new guidance explaining the Inheritance Tax and Capital Gains Tax relief which exist for owners of woodland.

Those of our clients who own woodland may wish to read more. 

To be eligible for relief from Inheritance Tax under the Government’s ‘Conditional Exemption Scheme’ you have to own ancient semi-natural woodlands which are, or could be, included on the inventories of such woodland kept by Natural England and Scottish Natural Heritage. HMRC consider each case on the scientific, scenic or historic value of the site. 

A growing timber crop on commercially managed woodlands is exempt from Capital Gains Tax (though the land it is growing on is not). 

Income from the sale of timber from commercially managed woodlands is also exempt from Income Tax and Corporation Tax. 

If you would like any additional information or would like to discuss your tax affairs in more detail please contact our Tax Partners on the details below:

Steve Crompton
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394
email: . 

Chris Barrington
Tax Partner
direct dial: 01942 292505
mobile: 07730 436070


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