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HMRC internal manual

Business Income Manual

Farming: receipts from sales of timber etc

S25 Income Tax (Trading and Other Income) Act 2005, S46 Corporation Tax Act 2009

Commercial woodland is not within the statutory definition of farming (see BIM55051). Profits from the sale of timber from commercial woodland are outside tax, although annual payments received by farmers under certain grant schemes in respect of such woodland may be taxable (see BIM55165).

See the comments in De Poix v Chapman [1947] 28TC462 at 470 by Atkinson J on the distinction between woodland and farm land with reference to its permanence of purpose and use.

Receipts from the sale of trees planted on farmland should be included as part of the farm receipts (see, for example, Elmes v Trembath [1934] 19TC72).

For short coppice rotation, see BIM55120