UK FORESTRY INVESTMENT 

MAINTENANCE COSTS - are around 2.0% to 3.0% per annum of capital value and most plantations will show a negative cashflow until well into the second half of the growing cycle. All ‘running’ costs are taken into account in assessing investment performance.

INCOME - is likely to be spasmodic rather than ‘regular’ except from the larger forests. However, the timing of harvesting is often at the discretion of the owner and can be scheduled to suit market conditions.

FORESTRY TAXATION

Commercial forestry in the UK is exempt from Income and Corporation taxes.

Capital Gains Tax does not apply to growing Timber

Inheritance Tax is relieved at 100% after two years of ownership

VAT is charged on forestry work and timber sales. Its effect is neutral.

Government grants are received tax free.