Taxation in Relation to Forestry and Woodlands

Income Tax and Corporation Tax

Profits or gains from the occupation of woodland in the State which is managed on a commercial basis and with a view to a profit are exempt from Income Tax and Corporation Tax (but not Universal Social Charge and Pay Related Social Insurance)

Capital Gains Tax

In the case of individuals, the value of the standing timber is not taken into account for CGT purposes. Where an individual disposes of woodlands, capital gains tax is chargeable on the lands only and not on the trees growing on the lands.

What is the position with inheritance tax on my forestry?

Your children for example, can inherit the forestry, subject to valuation and the threshold limits. They must retain it for 2 years before selling it on, but can manage it in the meantime – this can mean they can harvest timber from the forestry.

For full information on taxation of profits from the forestry, please consult the Revenue Operational Manual.