Julie Butler considers the commercial and tax strategy of woodland
Woodlands are currently potentially more profitable than they have been previously, possibly more so than they have been in ‘living memory’. It is essential therefore for all tax advisers to understand their tax position. HMRC’s approach to woodlands HMRC has been looking very closely at how woodlands are used for inheritance tax (IHT) purposes at many levels. HMRC is perhaps taking advantage of the fact that woodlands are often used for lifestyle activities and are ‘forgotten’ about by the farm and woodland tax advisers at a time when farm woodland should be used to make a contribution to the overall farm’s profitability, as well as being closely reviewed for tax purposes.