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Forestry Investment News
Tax breaks attract people to invest in forests and woodland
08/06/2009
People are increasingly looking to invest their money in areas of woodland in order to reap the benefits of growing and selling wood.
In the UK especially, investors are buying their own patch of woodland or investing in funds that are align to the international sustainable forestry industry as an alternative investment. Investors are now often looking for an environmentally sound investment with the potential for real profits that will not be taxed to high-heaven.
It is the tax benefits associated with forestry investment that is particularly attractive during these tough economic times. Once a patch of woodland has been owned and actively managed for more than two years, it is no longer liable for inheritance tax. No capital gains tax, income tax or corporation tax is owed on profits made on the wood itself, only on any increase in value of the land the trees grow on.
Companies that sell woodland claim the appetite for the investment has grown since the beginning of the credit crunch as people want to invest in something risk-adverse and tangible. Woodland investment has also held up against the collapse of the property market and industry is likely to carry on booming as recover sets in.
In the UK especially, investors are buying their own patch of woodland or investing in funds that are align to the international sustainable forestry industry as an alternative investment. Investors are now often looking for an environmentally sound investment with the potential for real profits that will not be taxed to high-heaven.
It is the tax benefits associated with forestry investment that is particularly attractive during these tough economic times. Once a patch of woodland has been owned and actively managed for more than two years, it is no longer liable for inheritance tax. No capital gains tax, income tax or corporation tax is owed on profits made on the wood itself, only on any increase in value of the land the trees grow on.
Companies that sell woodland claim the appetite for the investment has grown since the beginning of the credit crunch as people want to invest in something risk-adverse and tangible. Woodland investment has also held up against the collapse of the property market and industry is likely to carry on booming as recover sets in.
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