Readers' forum : Woodland relief

My client is contemplating the sale of woodland that he has owned since 2001. He regards the plantation as having been managed on a commercial basis. The business is VAT-registered and he has provided copies of the accounts which show profits in some years. However over the years losses have exceeded profits.

Recognising that the sale of timber or standing timber from commercial woodlands is exempt from capital gains tax the client has asked whether in the event of a disposal of the woodlands he would be entitled to claim entrepreneurs’ relief in relation to the disposal of the land on which the trees stand.

My initial research was inconclusive. One commentary suggests that a claim for entrepreneurs’ relief would not be possible on the basis that commercial woodlands must be a trade for income tax purposes to qualify as a business under TCGA 1992...