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wingrovebuyer
wingrovebuyer, Senior Solicitor
Category: Property Law
Satisfied Customers: 737
Experience:  Bachelor of Laws (Honours); PG Diploma in Law; Member of ALA; 9 years' experience
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I understand that the acquisition of woodland can be passed

Customer Question

I understand that the acquisition of woodland can be passed on to my heirs tax-free if arranged properly. Is this so and if so what is meant by "arranged properly"?
I have already asked this question on or about 21 February (and paid £28.00) but cannot trace having received your reply thus far.
Regards.
Alan Drake
Submitted: 1 year ago.
Category: Property Law
Expert:  wingrovebuyer replied 1 year ago.
Hello. This is correct. Woodland benefits from 100% inheritance tax relief provided that it is commercially managed and provided that you owned it for two years before your death. By "commercially managed", HMRC is looking for the woodland to have been actively managed with a view to making a profit from the timber. Entering a Woodland Grant Scheme, for example, would probably qualify. You'd need to contact the Forestry Commission about joining a qualifying scheme. Planting trees with a view to growing them for harvest would also assist. Incidentally, timber income is also from of income tax. Best, WB
Expert:  wingrovebuyer replied 1 year ago.
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