BIM51665 - Builders, property dealers & developers: purchase and sale of woodlands

S156 Income Tax (Trading and Other Income) Act 2005, S134 Corporation Tax Act 2009

Where woodlands in the United Kingdom are purchased by a dealer in land, so much of the cost as is attributable to trees (including saleable underwood) growing upon the land is to be disregarded in the computation of profits.

If, when the land is sold, any of the trees the cost of which has been disregarded are still growing on the land, the part of the sale price that is equal to the amount disregarded is also ignored.