Investing in Commercial Woodland: What you Need to Know

For lots of land investors, commercial woodland and forests investment is becoming increasingly popular by the day. Forestry investment itself is not a new idea as such but attracts significant investor interest because it is considered to be one of the most tax-efficient ways to invest in land in the United Kingdom. The UK is known for its beautiful outdoors, rolling hills, and vast forests and woodland areas, this is one of the many things that makes this country so striking.

It is little wonder that a lot of land investors increasingly want to own some land to add to their personal investment portfolios – and in turn, make a profit at the same time. UK land investments have always been highly popular with investors and with demands outstripping supply. Nevertheless, it is still possible to buy land, commercial woodlands and managed forests as an investment. It may not be common knowledge that the likelihood of a successful investment outcome is improving all the time.

Investing in Commercial Woodlands

When you research the necessary detailed financial mechanisms around investment in land and property you will find out that one of the most tax-efficient systems of doing so is to invest in the commercial woodlands and forests, which can be found up all over the country, but mostly based in the north of England and Scotland. Currently, there are tax incentives for investors in commercial woodlands and forestry investments ranging from an income tax, capital gains tax and inheritance tax perspective.

Forestry Investment Fund

Lots of investors will be aware that investing in land, particularly commercial forestry does not always come cheap, nevertheless, lots of private investors who recognise the benefits of forestry investment are now investigating alternative opportunities such as indirect investment. This includes forestry investment funds.

In the UK, forestry investment funds provide an opportune way for investors to access commercial woodland investment opportunities without the considerable financial outlay associated with the direct investment approach.

This sort of indirect investment approach to forestry investment is pretty straight forward. Forestry investment funds operate formal investment vehicles that are based on commercial forestry opportunities, similar to real estate investment trusts known as REITS. Such forestry funds provide their investors’ exposure to and the management of commercial forestry opportunities that have investment potential.

Here at Woodland Creation Scotland, we provide a VAT administration service to our clients as part of our comprehensive woodland management service. We can deliver a complete service for your woodland creation project. Get in touch with our knowledgeable team today to find out more about the services we offer. We’d be happy to help!

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