CGT and forestry shares

CGT and forestry shares

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For cgt purposes do the shares in a forestry company attract business taper relief?
It is unclear from the various manuals and cases whether this is so. Logically the answer is yes but the advice online seems contradictory or non comital. The revenue cannot answer straight away. Can anyone point me to the definitive legislation?

Thank you
Liz Macnab
Elizabeth Macnab

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By User deleted
15th Oct 2007 09:30

What advice?
I grant you forestry (woodlands) has always been a rather peculiar tax animal but, if a company is carrying on this activity on a commercial basis , why should not the shares attract BATR ?
Perhaps the clue here is that you cannot find a specific exclusion so, by inference, the trade is treated like most others.
It might be useful if you could tell us what "advice online" you have been looking at.

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By flurrymc
15th Oct 2007 12:01

exempt forestry activities
Exempt forestry does not count as a trading activity; land used for commercial forestry is not a business asset for BATR. Nor, therefore, would shares in a company engaged in exempt forestry be eligible for BATR.

In the FA 2003 debates the Paymaster General said that the lack of BATR for woodlands would “receive serious consideration from the government in due course.” I don’t think there were any subsequent announcements, and the point is now moot.

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