Corporation Tax Act 2009 section 980

Exemption for commercial occupation of woodlands in UK

Section 980 provides an exemption from corporation tax for income arising from the commercial occupation of woodlands in the United Kingdom.

• Income from commercially occupied woodlands in the UK is completely exempt from corporation tax under the miscellaneous income rules
• Woodland occupation counts as "commercial" only if the woodlands are managed on a commercial basis and with a view to realising profits
• Because the income is exempt, no loss relief is available for losses from woodland activities, since loss relief requires that any corresponding profit would have been taxable
• This exemption works alongside other provisions in the Corporation Tax Act 2009 so that income from commercial woodlands is effectively ignored for all corporation tax purposes