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Hello, I'm Keith and happy to help you with your question.
It is a key part of the favourable tax treatment which woodland receives is that CGT does not apply to the value of the wood as opposed to the land. Once this element of gain is deducted then the balance remaining is the only bit subject to the tax. There is an Annual Exempt Allowance (AEA) of 11K each available to offset the gain. Thus the gain is 13.3K each so, even if no wood value is excluded, the gain is reduced to 2.3K by the AEA. Gains are taxed at 18% or 28% or a combination of the two rates depending upon the taxpayers' income including the gain in the year of sale, so possible worst case scenario is slightly less than GBP 650 each of tax due.
Any gain may be available as Roll Over Relief and deferred if a reinvestment in woodland is made. Inflation linking for CGT ceased on 30 November 1993. Bank interest paid or received is either available against the trading profit in the former case or included in your income for Income Tax purposes in the latter.
I do hope I have helped you with your question.
Thank you Keith, However how much or how do I value 33 acres of wood/ timber (against the land), for instance would the value of the timber be reasonably priced at £15000.00, against the total value of land & timber, therefore the land sale would only have been £71000.00 & not give rise to CGT am I right ? Thanks.