Posted by: davidgarnerconsulting | October 6, 2009

Forestry Investments Provide Inheritance Tax Relief

Inheritance tax (IHT) is not what most people want to leave behind for their loved ones. At 40% on the value of your estate above £312,000 (2008-09 tax year) it’s well worth taking steps now to protect your assets.

Forestry investments offer a unique way to protect your money from incurring inheritance tax. This is because a forestry investment qualifies for business relief, thus shifting the investment outside your estate after two years.

Trees grow slowly, of course, so forestry investments are not for short-term gain: they are long-term investments. Because of this, timber and forestry are excellent investments for occupational pension funds. The investment term – which can sometimes be over 50 years – means the nature of forestry investments sits well with the liability of a pension fund.

A forestry investment is also a good way to pass money down the family line as it produces only a small amount of income to be potentially squandered by feckless beneficiaries. The capital is secure, and will be available for future generations at a later date.

There is no limit to the amount of money that can be held in a forestry investment, and all the money that’s invested qualifies for business relief.


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