Taxes Consolidation Act 1997 section 564

Woodlands

Section 564 provides that when an individual disposes of woodland, the value of trees and any related insurance proceeds are excluded from the capital gains tax computation.

• On a disposal of woodland by an individual, the part of the sale proceeds attributable to trees growing on the land is excluded from the CGT calculation, as are any insurance proceeds received for the destruction of or damage to the trees.
• The cost of acquisition must also be reduced by the amount attributable to trees growing on the land at the time of purchase, so that both sides of the computation reflect land value only.
• References to trees include saleable underwood, which is treated on the same principles as standing timber for CGT purposes.
• The relief applies only to individuals — it does not extend to companies or other bodies of persons.