Forestry

Forestry

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Can anyone give me some insight into how to deal with client who has purchased a forest and who is now selling timber from it. I understand this is not taxable? Does the client have to complete a corporation tax return or how are HMRC advised of the profit and losses for this business? Its been all losses up until this year....

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By User deleted
07th Sep 2012 20:33

Commercial woodlands ...

... profits are not taxable (and losses not allowable). But sales of felled timber are generally subject to VAT.

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Replying to emanresu:
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By k whyte
07th Sep 2012 21:00

Yes I have the prepared the VAT but its the corporation tax return - do I NOT complete one ? Is there a form I should report on this to HMRC?

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By User deleted
07th Sep 2012 21:19

If ...

... the company has no other source of income whatsoever, you could write to HMRC and ask them to confirm that no CT600 is required. My experience is that thay will want one filed - but the computation should be very simple!

Profits £x

Less exempt profits £x

PCTCT £nil

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Replying to Portia Nina Levin:
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By k whyte
07th Sep 2012 21:24

Thank you so much for the confirmation......

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