Woods provide more than an escape from modern life, says Kevin Dowling in The Sunday Times. They are also a tax-efficient investment.
Britain is one of the least wooded countries in Europe and half of its ancient woodland has been lost since the 1930s. Today, according to Forestry Commission figures, just 13% of the total UK land area is covered in trees.
But investment or leisure buyers may be able to do something to reverse that trend.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Over the past five years the number of Britons paying up to £60,000 for small woodlands (5-25 acres) has doubled. Many buyers plant new trees, and there are "hard-headed" reasons for doing so. "The price of firewood has risen sharply and is currently around £75 a ton."
Profits from timber sales are free of income tax and there is no capital-gains tax to pay on standing or felled wood. Plus if you own your woodland for more than two years, there is no inheritance tax to pay either.
Woodlands.co.uk is one of a number of companies that specialises in the sale of small woodlands.
-
Barclays begins paying up to £100 compensation to customers after banking outageBarclays will pay up to £7.5 million in compensation to customers after its banking services were disrupted by an IT outage
-
Review: Shangri-La Paris – an ode to the world’s best foodNatasha Langan enjoys fine French and Chinese cuisine at the Shangri-La Paris
