FORESTRY INVESTMENT                              

Demand for wood products has brought upward pressure to bear on wood prices. Commercial forest property continues to exceed supply in the UK.

The latest publication of the annual IPD UK Forestry Index shows that forestry investment returns in the UK remained strong through 2013 and will continue to do so.

The IPD UK Annual Forestry Index is calculated from a sample of private sector coniferous plantations of predominantly Sitka spruce in mainland Britain.

In 2013, the IPD UK Annual Forestry Index showed a total return of 15.8% for the year, a step down from the 18.6% seen in 2012 but continuing the trend for very strong performance by forestry investment in the UK.

The decade to the end of 2013 has seen an excellent performance by UK forestry investments with annualised total returns of 22.2%, 19.7% and 17.9% over 3, 5 & 10 years respectively and no years of negative returns. This performance should be noted for its superiority over commercial property, residential property, equities and gilts in all cases over 3, 5 and 10 years.

Tax Benefits

For UK-based investors, the tax reliefs available for investment in commercial forests have been consistently maintained by successive governments. Here are some facts for potential investors.

Fact 1

There is no income tax on harvested timber

Fact 2

There is no capital gains tax on the growth in the value of the tree crop only on the land value.

Fact 3

An investment in forest property also qualifies for Business Property Relief (BPR) which provides 100% relief against inheritance tax (IHT) after two years of ownership.

Acquisition Services

Investing in forest property requires a specialised and experienced understanding of modern forest management practices and a detailed knowledge of timber production and markets.

Our company has more than 20 years experience in assisting and independently advising clients in identifying appropriate investment opportunities to suit specific investment planning goals.

As part of our service we can prepare detailed reports to form part of a Business Plan prior to acquisition as well as carrying out due diligence and liaising with clients' legal teams.

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