Autumn Budget 2025: Woodlands and Inheritance Tax Benefits

The Chancellor has cleared the way for individuals and couples to buy woodlands in a tax efficient way. 

Changes to the inheritance tax relief on commercially managed woodlands have made it easier for couples to shelter their assets from inheritance tax (IHT). Specifically, the £1m IHT allowance per person is now transferable between spouses.

Chancellor Reeves has reinforced and extended the allowances for individuals and couples seeking to benefit from HMRC’s favourable tax treatment of woodland ownership. These allowances ensure the future of Family Forestry, enabling the transfer of woodlands between generations.

This endorsement of forestry investment emphasises the role that they can play in estate planning, combined with stewardship and enjoyment of UK woodland.

Government changes to the UK tax framework over the course of the last year have led to an increasing public awareness and interest in owning woodland in order to reduce the inheritance tax payable.

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’s National Manager, Dan Sharp, highlights the welcome continuity to the taxation of woodland and forestry following Chancellor Reeves’ budget today: “The Government has reaffirmed stability in the tax treatment of commercially managed woodland, supporting long term planning.”

Sharp adds, “Legacy Forestry continues to offer an end-to-end service, allowing potential purchasers not only the opportunity to benefit financially from owning woodland but also giving investors the opportunity to create a meaningful and positive legacy for future generations to enjoy.”

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

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

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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.

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.