Into the woods

JARLATH McCLOSKEY examines the income and capital gains tax consequences of the commercial occupation of woodlands.

THE CHARGE UNDER Schedule B on the commercial occupation of woodlands will be remembered by those who have been working in tax since the 1980s or earlier. The Finance Act 1988 having repealed Schedule B ITTOIA 2005 now consigns the other Schedules to history except as regards companies where the old legislation and nomenclature remains in force for the time being while retaining the charging provisions under another name. Thus income from the occupation of woodlands remains exempt from income tax as ITTOIA 2005 s 11 (previously TA 1988 s 53(4)) excludes the commercial occupation of woodlands from being treated as a trade for income tax purposes and ITTOIA 2005 s 267(b) (previously TA 1988 s 15(2)) excludes occupation of woodlands as...