BIM67701 - Woodlands
S11, S267, S768 Income Tax (Trading and Other Income) Act 2005, S37, S208, S980 Corporation Tax Act 2009
The occupation of woodlands managed on a commercial basis and with a view to the realisation of profits is wholly outside the scope of Income Tax and Corporation Tax. Thus:
- profits arising from the occupation of commercial woodlands are not chargeable;
- no relief is available for losses suffered;
- capital allowances cannot be claimed on capital expenditure incurred on plant or machinery connected with commercial woodlands;
- no relief is available for expenditure incurred on the preliminary clearance of woodland or other preparation of land for forestry purposes.
The owner of a commercial woodland who lets it in return for a rent is, however, chargeable on the profits arising from a property business.
Profits from the sale of trees in commercial woodlands are exempt from Capital Gains Tax, see CG73200 onwards.