Uncovering the wonder of a woodland investment

Posted: November 13, 2019 by Karen Kipling
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In all the media coverage about the climate emergency there is a consistent message about the importance of planting trees, preserving woodland and keeping our existing forests healthy. One way to contribute to this goal is by investing in woodland.

Interest in forestry and the preservation of woodlands is continuing to grow. In Scotland, for example, there is a target of planting 15,000 hectares by 2025 and whilst similar planting targets are missing from Westminster’s rural plans, there is still a buzz about the opportunities in woodland.

Viewed as a long-term investment, purchasing woodland can offer your own private slice of nature, and provide an encouraging return in the process. Over the past two decades, returns on woodland investments have grown to around 9% – that’s higher than the average return on a rental property.

It’s also worth noting that if purchasing woodland to run as a commercial enterprise the income generated from the timber is exempt from both income, capital gains and corporation tax. A fantastic example of this is Langley Forest which offers both a forested area and adjoining meadows which offer the opportunity to extend the forest area.

Our top tips for investing in woodland

  1. Know what you’re buying

Many of the UK’s forests and woodlands are home to a diverse selection of trees, wildlife and flora, many of which may be subject to protection orders or special measures.

  1. Seek specialist advice on management

From thinning to felling to the health of trees and the erection of buildings, maintaining a woodland for optimum return on investment requires specialist advice from experts.

  1. Consider what you want and need from a woodland investment

Whether it’s space for camping getaways, time in nature or wood for the woodburner knowing what you need and want from a woodland will help you make the right selection.

  1. Approach it as a long-term investment

Unlike property investment which can be short term, investing in woodland is a long-term option, but with the tax breaks available it’s an attractive proposition for an investor.

From playing a vital role in the maintenance and preservation of our beautiful woodlands to making a sound financial investment, it’s time to look seriously at forestry and woodland purchases. To enquire about opportunities in this area contact John Coleman on 01748 897627.