Taxation of Chargeable Gains Act 1992 section 250

Woodlands

Section 250 provides exemptions from capital gains tax for proceeds from the sale of trees and timber on commercially managed woodlands in the United Kingdom, and sets out how the value of trees is treated when computing gains on disposals of woodland.

• Proceeds from selling trees (standing, felled, or cut) on commercially managed woodlands are excluded from the capital gains computation, provided the seller is the occupier of the woodland
• Insurance payouts for destruction of or damage to trees on such woodlands are similarly excluded from the capital gains computation
• When computing a gain on the disposal of UK woodland, both the cost attributable to trees growing on the land and the portion of the sale proceeds attributable to those trees are left out of the calculation
• References to trees throughout this section include saleable underwood