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Forestry Investment

Woodlands can be owned by many types of individuals from those looking for long term capital growth to people who just want somewhere pleasant to walk the dog.

The market in Scotland is dominated by commercial conifer woodlands producing valuable timber  for the well developed home based timber industry. Investments can range in value from £50,000 to many millions. Woodlands are bought and sold just like houses and there is an active market. Over the last 10 years demand has been strong and returns from forestry investment have been very competitive.

Trees grow predictably in both size and value, and in well-managed plantations this will provide a capital growth investment and generate substantial income from the timber harvested. The predictability of growth makes forestry ideal for future income and pension planning. A range of forest management companies exist meaning that assets are professionally managed with little input required from the owner.

The Scottish Government is strongly committed to expanding the nation's woodland area and there are attractive grants for investors who buy farmland and wish to create new woodland.

Significant tax benefits exist for woodland owners with no tax on timber sales, no capital gains tax on the growing timber crop and commercial woods counting as Business Property, thus receiving 100% relief from Inheritance Tax.

Woods can be certified as sustainably managed, making this the ultimate carbon friendly, green investment.


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