Investment

Overview

The Investment Division of Scottish Woodlands has a personal approach to forestry investment advice, and our principal strength is the ability to tailor our services to the requirements of our clients; whether they are individuals, corporate or institutional investors.

We realise that investment can be a very personal matter, often involving many other external factors, and we aim to respond effectively to the needs of every client.
With our extensive network of staff and contacts throughout rural land businesses and professional advisors in the UK, we have an excellent knowledge of upcoming opportunities with existing forests or new planting land.

Working closely with our Forest Management and Timber Harvesting teams across our network of offices in Scotland and the wider UK we can react quickly to these opportunities and can assess and appraise individual assets, giving an insight into local and national influences. This approach provides our clients with confidence to invest in the asset class.

As your understanding of the asset class and the drivers for investment are crucial to your decision to invest, we like to meet with all prospective investors on a one-to-one basis to discuss these objectives and to determine how we can help you to realise those objectives.

To arrange a no obligation meeting please contact us.

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Investment and Acquisition Services

In addition to the acquisition of forestry land, we also provide a wide range of additional professional services aimed at the forest or estate owner. These assist our clients to streamline their property management.

Additional services are outlined below:

  • Market Analysis and Review
  • Site Assessment and Inspection
  • Investment Appraisal
  • Valuation
  • Technical Reporting
  • Purchase and Sale Due Diligence
  • Portfolio Management Valuation


Valuation

  • Valuation by RICS "Registered Valuer" of; forests, farms, estates
  • Timber Valuation and Inventory

Estate and Land Management Services

  • Property Management
  • Holiday/Short Term Letting
  • Business Planning 
  • Client Accounting and VAT Services
  • Staff, Agriculture and Sporting Management

Professional Services

  • Planning and Development
  • Rural Business Consultancy
  • Project Management 
  • Renewables 
  • Site Identification and Scoping 
  • Way Leave and Compensation Negotiations

Forestry Taxation

In order to stimulate the planting and management of commercial forestry in the UK, providing much needed raw materials for the processing sector and creating employment in fragile rural areas, the UK government has had a very favourable approach to the taxation of forestry for a prolonged period. This makes a forestry asset investment attractive for a range of reasons;

Income Tax

Income received from the sale of timber or from the occupation of commercial woodlands (or land being prepared for forestry) is exempt from income tax. Forestry Grants received for the planting of land in the UK are not subject to Income Tax, however, where payments are made in lieu of agricultural income these may be subject to tax at your current rate.


Inheritance Tax

Commercial woodland currently attracts 100% BPR from Inheritance Tax (IHT) provided you owned the woodlands for two years.

Woodlands are treated as commercial if they are managed on a commercial basis with a view to the realisation of profits. Evidence will need to be retained to substantiate such a claim, for example, accounts and records should be kept showing historic details of any profits and losses made.

Capital Gain Tax

For commercial woodlands, there is no capital gains tax (CGT) liability arising from the sale of any standing or felled trees. However, any gains resulting from the sale of the land (i.e. the solum or prairie value) on which the trees are situated on is liable to CGT.

It is important that separate valuations for the value of the timber and land are obtained on any acquisition or disposal of woodlands. Otherwise, an apportionment will be made on a just and reasonable basis between the value of the land and the timber/trees.

More detail on the above exemptions and further measures available for forestry and rural land can be found in our Taxation of Woodlands document. 

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Investment contacts

David Robertson

Head of Division - Investment

Andrew Kennedy

Regional Manager (Investment & Business Development)