Income Tax (Trading and Other Income) Act 2005 section 11

Commercial occupation of woodlands

Section 11 provides that the commercial occupation of woodlands in the United Kingdom is excluded from the income tax system entirely, meaning no profits are taxed and no losses can be relieved.

• The commercial occupation of woodlands in the UK is not treated as a trade, or part of a trade, for any income tax purpose
• Occupation of woodlands is "commercial" if the woodlands are managed on a commercial basis and with a view to realising profits
• Both profits and losses from commercial woodland occupation are completely outside the income tax system, covering trading income, property income and miscellaneous income
• No trading loss relief can be claimed, and no charge to tax arises under any income tax heading, in respect of commercial woodland activities