
Guidance
The Value of Woodland Ownership
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Strategic Estate Planning
Buying woodland should be part of a strategic long-term plan around inheritance tax

Tax-Efficient Ownership
Early planning allows woodland ownership to be integrated into an estate planning strategy, potentially benefiting from a 0% IHT rate where applicable

Beyond Wealth Transfer
While woodland ownership may principally serve as a strategy for wealth transfer, it also offers personal, health, and sustainability benefits
Business Property Relief
Discover how qualifying woodland investments can benefit from Business Property Relief, offering up to 100% relief from Inheritance Tax as part of a strategic estate plan

Eligibility
Woodland may benefit from inheritance tax (IHT) exemption through business property relief. This relief makes woodland an attractive investment as, together with long-term capital appreciation, it can also eliminate or very much reduce IHT liabilities.

Business Property Relief
BPR provides up to 100% relief from IHT for qualifying business assets, which include commercial forestry. To quality, the woodland must have been owned for at least 2 years before the owner’s death, the land must be managed for commercial purposes (such as timber production) and there must be proven business activity (e.g. evidence of forestry operations, such as harvesting, planting or timber sales).

Changes to the 100% IHT relief
From 6 April 2026, Business Property Relief will continue to be 100% relief for commercial forests under £1m in value.
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How long will it take to buy?Your lawyer should be able to do it within 4 weeks but it sometimes takes up to 8 weeks. There are several things you can do to speed up the process. The main ones are to give your lawyer the purchase money early, specifically ask them to process the purchase speedily and regularly “check in” with them on current progress.
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Are there any annual charges to pay?Generally the answer is no, there are no annual charges: woodlands do not attract council tax or business rates or any other similar charge. The two exceptions to the rule of no annual charges are both small and rarely arise - where there are ground rents or drainage rates to pay. In the unusual cases where we are selling a long leasehold woodland there will be a small annual payment to the freeholder as these long leases were mainly set up in the 1950s and 1960s. The typical charge is under £10 per year. In a few circumstances there are local agricultural land drainage charges to pay but these are generally very small (less than £50 per year is typical) and in return one actually gets something useful in return - a local internal drainage board keeping the rivers and drains working. This usually only applies to woodlands adjoining rivers and marshland and even so, there are many riverside woodland properties which are not within the area of an Internal Drainage Board. Main rivers are managed by the Environment Agency and so these do not attract any charges for the neighbouring owners.
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Do I need insurance?Many people do not insure their woodlands but if you feel more comfortable insuring against third party risks there are a number of providers we know of, such as Beech Tree Insurance (https://thebeechtree.com/)
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Can I build a house on my woodland?Almost certainly not in the immediate future: you will not get planning permission. Even in the exceptional cases of owners gaining permission to build houses in their woods these have occurred only where people worked their woodlands for many years and shown that this was their main source of income.
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Trees and tree felling: what is allowed?The Forestry Commission is the relevant authority in England and Scotland, and in Wales it is Natural Resources Wales. Unless your wood is covered by a Tree Preservation Order, or lies in a Site of Special Scientific Interest, the Forestry Commission rules allow most of the routine cutting you are likely to want to do. In particular, they only count as trees those that are above 8cm in diameter at breast height. Beyond that, you can, without permission, cut five cubic metres of timber in any one calendar quarter for private use. The volume of a tree can be calculated from its diameter and height (generally ignoring the branches); the Forestry Commission have a summary table to show how many trees represent 5 cubic meters. So for example, every three months you would be able to cut down 70 trees that are 4m tall and of 15cm diameter in the middle, giving plenty of scope for management and glade/path creation. It is now generally seen as desirable to have some glades or clearings in woodland so you will not have problems if your cutting is sensible. If you want or need to fell more trees, you will need a felling licence from the Forestry Commission. This is issued by your local FC officer, who will probably meet you in your wood to discuss it, and also possibly a management plan covering the whole of your wood for several years. Grants may be available if you need to do a substantial amount of work. In our experience the Forestry Commission is an extremely helpful organisation and the individuals at the local office are keen to help and are increasingly promoting objectives that do not just relate to growing timber. There is no charge for their visit. You will get lots more information from the Forestry Commission advice on tree felling. The Forestry Commission controls tree felling by issuing felling licences. Felling trees without a licence, where one would have been required, is an offence. Anyone can apply for a one, but it must be issued in the name of the owner or lessee of the property. There are exemptions as some felling does not require a licence, including a personal allowance. In any calendar quarter, you may fell up to 5 cubic metres (m3) of growing trees on your property, without a felling licence, as long as no more than 2m3 are sold. 5m3 is a volume roughly equivalent to a standard sized builders skip. Other exemptions include trees of a small diameter and the felling of a tree necessary for the prevention of danger or the prevention or abatement of a nuisance (please check the detailed wording as it is quite specific).
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What grants are available?If you are planning extensive work in your woodland, you may consider applying for grant aid to assist with the cost of the work. A key source of grants is the Forestry Commission, with grants designed to cover between 25% and 75% of the cost of having work done, at commercial rates. Even if you are doing the work yourself, the grant can be claimed. In order to apply for grant assistance, you will need to have a formal management plan. This will normally be prepared by an experienced planner, and there is grant assistance available for the production of the plan. The grant schemes managed by the Forestry Commission are devolved to the three British governments, so there are different schemes, and different levels of grant are available in England, Scotland and Wales.
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What Woodland Organisations exist?Small Woodland Owners' Group The Small Woodland Owners' Group (SWOG) is an informal on-line network throughout Britain, formed so that owners can make contact with each other and the wider woodland scene. SWOG helps woodland owners share their knowledge and experience with each other through a monthly on-line newsletter, and an on-line forum. Members arrange meetings, usually in their own woods, sometimes with a speaker. As well as being informative, these meetings give an opportunity for owners to meet others like themselves face to face. Membership is not restricted to actual owners, and is free. Small Woods Association The Small Woods Association promote the responsible management of woodlands. Members receive an introductory pack and copies of a regular magazine that is useful to woodland owners. They also have a helpline, run courses and put on regional and national events and conferences. Royal Forestry Society Since 1882, The Royal Forestry Society has shared knowledge on the art and science of woodland management so that the accumulated wisdom and experience of landowners, foresters, arborists and others is transferred from one generation to another. The RFS has a broad membership and is open to all. As a member you will receive their Quarterly Journal of Forestry, which is definitely worth reading. The RFS also organises walks, talks, study tours in the UK and overseas and woodland meetings. It’s worth noting that members will gain eligibility to apply for exclusive grants and bursaries. New woodland owners who’ve joined through woodlands.co.uk can request free membership of the Society for a year by emailing membership@rfs.org.uk. Forestry Commission The Forestry Commission is a large government organisation, which is split into two parts – the one dealing with their own forests and the one that advises private owners. It is the latter which can help the woodland owner with free advice, grants and useful information. The FC have recently become much more supportive of owners of smaller woodlands, and the focus has gradually changed from exclusively timber production to include a very strong commitment to encouraging biodiversity, and recreational use. British Trust for Conservation Volunteers The British Trust for Conservation Volunteers (BTCV) is a national voluntary organisation whose main objective is to enable volunteers to work on conservation projects. Many of our purchasers began by joining in with the local BTCV volunteers to get a feel for how to look after a woodland, and to meet like-minded people. The organisation also runs useful courses and publishes excellent handbooks. Wildlife Trusts Each county or group of smaller counties has its own semi-independent Wildlife Trust, part of a national network. The Wildlife Trusts are dedicated to protecting and improving the natural environment by educating the public, and by enabling volunteers to take an active part in conservation projects. Often they run local courses on specific subjects of general interest. Natural Resources Wales Natural Resources Wales was created by bringing together the Forestry Commission Wales, Countryside Council for Wales and Environment Agency in Wales, as well as some other functions of Welsh Government. NRW is the principal adviser to the Welsh Government on the environment, enabling the sustainable development of Wales’ natural resources for the benefit of people, the economy and wildlife, manages their own forests, and also supports private woodland owners with free advice, grants and useful information. Llais y Goedwig Llais y Goedwig is a grassroots network of woodlands community groups & practitioners across Wales. Their activities include supporting knowledge and experience sharing and working to raise the profile of community woodlands with the general public and policy makers. Visit www.llaisygoedwig.org.uk for the latest community woodland news, events and resources, as well as a map of where groups are located, and details on how to join free of charge.
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Could you provide an overview of the legal process (England and Wales)?A step-by-step guide to the legal process for England and Wales 1. You tell us which woodland you want to buy, and you give us the name and address of your lawyer (we have a list of efficient, reasonably priced solicitors recommended by past purchasers.) 2. We take the woodland off the market, i.e. we clearly mark it as sold on our website, and we do not offer it for sale to anyone else. 3. We send your lawyer a letter confirming that we are selling the woodland to you, and giving our lawyer/conveyancer's name and address. You get a copy of this letter with a copy of the plan showing the boundaries of the wood you are buying. 4. You send your lawyer: 10% of the purchase price The name(s) in which you want the wood registered Queries about any matters regarding rights and title that you want checked up on. 5. Our lawyer/conveyancer sends your lawyer a "draft contract" and a copy of our Land Registry title to the land. 6. Your lawyer sends our conveyancer a questionnaire called "pre-contract enquiries" together with the other queries you had (if these have not already been covered by phone). 7. Our lawyer/conveyancer with our help completes the questionnaire and returns it to your solicitor. 8. Meanwhile, your lawyer does a "local search", asking the local authority about planning, rights of way, etc. 9. Your lawyer sends you the contract with an attached plan showing the piece of land you are buying, and the other tracks over which you will have right of way. You sign this and return it to him/her. 10. Our lawyer/conveyancer sends us an identical contract, etc., and we sign and return it. 11. You tell your lawyer that you will have the rest of the money available for the completion on an agreed date and authorise the exchange. 12. The lawyers/conveyancers agree a date up to four weeks ahead for completion. Your lawyer retains the deposit that you have sent them as "stakeholder". 13. The two lawyers/conveyancers exchange the signed contracts. 14. You send your lawyer the balance of the money, also payable to their "client account". Allow time for the transfer to clear well before the completion date. 15. Your lawyer draws up another document, very like the contract. This is called the transfer, and its function is to notify the Land Registry of the transaction, and authorise the issue of a Land Certificate in your name. 16. The transfer is checked by our lawyer/conveyancer, signed by you and witnessed, signed by us, and sent back to your lawyer, who sends it to the Land Registry. 17. On the completion date, your lawyer sends the balance of the money, and the woodland now belongs to you. 18. We send you a key to the gate, and a copy of our book, as well as offering you many other benefits to get you started. We also give you any information you need about local contractors, etc. 19. And, finally, we each pay our own legal costs.
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Could you provide an overview of the legal process (Scotland)?Scottish law is quite different from the law in England and Wales and for your purchase you will need to use a Scottish solicitor. If you do not have a solicitor in mind, we have a list of Scottish solicitors who we know to be effective and reasonably priced for conveying (transferring) woodland and agricultural land. Purchasing woodland could be seen as a step-by-step process. You tell us that you want to purchase woodland or meadow and we write a letter to all parties (you, your solicitor and our solicitor). This letter will set out what you are buying, how much it is costing and who the parties are, and the likely timescale. Your solicitor will then make a formal offer to our solicitor agreeing to buy at the stated price and stating the conditions of that offer. This in effect means the things he/she is going to check up on. A correspondence is then entered into between the solicitors, which is described as “the missives” which are simply formal letters between the lawyers to agree the terms of the contract. When full agreement is reached then a binding legal contract exists (described as “conclusion of the missives”). Part of this exchange of missives includes agreeing a date of “settlement” - when you will pay and “entry” will take place . This is the equivalent in English law of “date of completion” – the date when you take possession of the property. Once “missives are concluded” neither party can withdraw without serious implications, as they are both bound by the contract. Following conclusion of missives your solicitor will examine the title to the property check documentation including property searches and rights of access and he/she will prepare a “Disposition” (equivalent to a “transfer” in English law). This is the formal document which transfers the property into your name. After your solicitor is satisfied that you will be obtaining a clear, valid and marketable title to the property he/she will proceed towards the next stage of the purchase which is Settlement. On the date of entry the ownership of the property transfers to you and your solicitor transfers the purchase money to our solicitor. After the date of entry/settlement your solicitor will register your title at the Register of Scotland, who may take several months to fully process your title. When the title has been processed, the record is kept centrally and you can get a full copy from them by post or download and print your own copy online much more cheaply.
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When is a woodland considered commercial?For a woodland to be considered commercial, there are some key criteria to consider. These include: Intention to make a profit: there must be a clear intention to manage the woodland commercially, but this does not mean the woodland has to be profitable yet. Evidence of active management: a woodland management plan or forestry plan is a strong indicator. Legacy Forestry provides bespoke UK Forestry Standard (UKFS) compliant management plans using the Forestry Commission format. In practical terms, active operations can include thinning, planting, harvesting and pest control. Sale and income: evidence of income from the woodland (e.g. firewood sales) support the commercial nature. Even if income is sporadic, as is common, records of past sales or expect future sales matter. Involvement of forestry professionals: engaging a local forester or land agent shows serious intent and can contribute to formalising operations. Grant applications and subsidies:seeking and securing government schemes can indicate commercial intent. For an overview of woodland grants and incentives, please see this page. When assessing how you, or someone helping you, might look to manage your woodland commercially, a great place to start is looking through the woodland management plan that Legacy Forestry provides to buyers.

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