Glossary · UK
What is Woodland Relief?
An Inheritance Tax relief that can defer tax on the value of growing timber on qualifying woodland.
Full Definition
Woodland relief is an Inheritance Tax relief that allows the value of trees or underwood (though not the underlying land) on qualifying commercial woodland to be left out of a deceased person's estate on first death, deferring the tax charge until the timber is eventually sold or given away. It is narrower than Agricultural Property Relief or Business Property Relief, applies only to the timber itself rather than the land value, and any deferred tax becomes due (based on sale proceeds) when a disposal happens.
See Also
Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.