• 100% IHT relief after 2 years ownership (as qualifying business property relief applies to both land and crop values)
  
• No Income Tax on timber harvesting revenues
  
• No CGT on the increase in crop value
  

• Forestry land at circa £300 - £600 per acres is by far the cheapest land available in the UK but prices continue to appreciate steadily.

• Returns will vary over time.  IPD 15 year returns are just over 7% per annum. 
  
• One part of the return comes from the biological growth of the trees representing  2 – 3% per annum (like an index linked gilt).
  
• The second element of the return comes from timber commodity appreciation.

• Biological growth means that crop values appreciate over the medium term. 
  
• For Spruces a total rotation length is 35-40 years. A crop which costs circa £500 to establish may generate £2,500 per acre at harvest.
  
• In reality most own a property for 10-15 years, selling their wood on the open market with the benefit of an established growing plantation.

A Commodity Investment
At larger diameter sizes, UK logs are used for construction whilst at smaller sizes for pulp, chipwood and fuel wood.  Demand for the latter is increasing rapidly to meet UK energy needs. Prices rise and fall but a reasonable expectation of future appreciation may be 3-5% per annum on average.

Enjoyment
Woods in the south of England can provide scope for easy access for sporting and conservation interests. Plantations in the uplands may be situated in some of the most wonderful landscapes in the UK offering a wide range of recreational opportunities in their vicinity.