Woodland Purchases Encouraged By The Government With An Extra £600,000 Tax Boost

The Government's U-turn on Agricultural Property Relief means that woodland buyers may save up to £600,000 extra in tax relief. The inheritance tax free band for a couple owning commercial woodland has been increased from £2 million to £5 million. Following sustained pressure from the farming and rural business community, ministers have announced that the threshold for full 100% relief under Business Property Relief (BPR) and Agricultural Property Relief (APR) will rise from £1m to £2.5m per individual from April 2026, with reliefs transferable between spouses.

This change to inheritance tax relief on commercially managed woodlands has made it easier for couples to protect their assets from inheritance tax (IHT). Increasing the allowances available to individuals and couples seeking to benefit from favourable tax treatment of woodland ownership will help ensure the future of Family Forestry, enabling the transfer of woodlands between generations.

“Woodland ownership has long been compelling on environmental and lifestyle grounds. This reform, announced via the Christmas U-turn, reinforces the position of woodland and forestry as a serious long-term asset that can benefit from material IHT relief, says Legacy Forestry’s National Manager Dan Sharp.

Legacy Forestry continues to be uniquely placed in offering appropriately sized commercial woodlands to individuals and couples seeking to benefit from the current UK inheritance tax regime.

Legacy Forestry invites financial editors, investment analysts, and journalists specialising in personal finance, wealth management and sustainability to engage with Legacy Forestry directly.

For detailed insights, additional data on woodland and forestry ownership, and to arrange interviews, please contact the Legacy Forestry press team at Quick Brown Fox PR: victoria@quickbrownfoxpr.com or richard@quickbrownfoxpr.com or on +44 (0)7799873714

NOTE: Woodland investment is not covered by the Financial Services Compensation Scheme (FSCS). Legacy Forestry does not offer tax, legal or accounting advice, and is not regulated by the Financial Conduct Authority (FCA). The value of woodland investments and the income from them may fluctuate. Tax reliefs are subject to change and dependent on individual circumstances. Please see https://www.legacyforestry.co.uk/about for further Legal Information.

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Editors notes

Legacy Forestry is a UK woodland and forestry specialist with over 40 years’ experience in managing and selling commercial woodlands. The woodlands we sell are carefully sized to fall within HMRC’s 0% inheritance tax band, and always include a UK Forestry Standard-compliant management plan in Forestry Commission format. We own all land that we sell and do not act as agents, ensuring that the buying process is clear, efficient and straightforward. Our buyers receive personalised end-to-end guidance through the process. Legacy Forestry’s turn-key solution ensures that buyers who wish to benefit from HMRC’s favourable tax treatment of forestry investment can do so in tandem with sustainable woodland stewardship across the UK.