BIM51665 - Builders, property dealers & developers: Purchase and sale of woodlands

Where woodlands in the United Kingdom are purchased by a dealer in land under a contract made on or after 1 May 1963, so much of the cost as is attributable to trees (including saleable underwood) growing upon the land is to be disregarded in the computation of profits (ICTA88/S99 (1) for Corporation Tax, ITTOIA/S156(1-3) for Income Tax).

If, when the land is sold, any of the trees the cost of which has been disregarded are still growing on the land, a proportionate part of the amount disregarded is to be deducted from the sale price.