Tax-break woodland investments draw scrutiny in UK
13 reported1 unconfirmed
A single-source report from The Guardian examines how wealthy investors are using commercial forestry to reduce inheritance tax liabilities, with a focus on a contested site in the Scottish Borders. At Todrig, a 580-hectare property, plans by the £11bn investor Gresham House to clear land and plant commercial tree saplings have been temporarily halted after a legal challenge citing the vulnerable northern brown argus butterfly. The local environmental regulator was forced to carry out additional checks. Gresham House bought the land for £12m in 2022, six times its price three years earlier. Industry calculations cited in the report suggest woodland values have roughly doubled over the past decade. The report notes that commercial forests can qualify for business property relief after two years of ownership, and investors pay no income or corporation tax on growing timber and no capital gains tax when trees are felled. Campaigners warn that rising demand for such tax-break trees is putting strain on natural grassland and forests across the UK.
What’s reported
Todrig is about 580 hectares (1,433 acres) on the English-Scottish border.
Gresham House, a London-based investor, bought Todrig for £12m in 2022, six times its price three years prior.
The northern brown argus butterfly’s “vulnerable” status halted forestry plans after a legal challenge forced more checks.
Camilla Fowler chairs the local Lilliesleaf, Ashkirk and Midlem community council and opposes the forestry plan.
David Lintott, a barrister, led the legal campaign via his company Restore Nature.
Industry calculations suggest woodland values have roughly doubled over the past decade.
Commercial forests can qualify for business property relief after two years of ownership.
Investors in woodland do not pay income or corporation tax on growing timber, and no capital gains tax when trees are felled.
The UK inheritance tax rate is 40% above certain thresholds; most married couples can pass down £1m tax free.
Gresham House’s Forestry Partnership has net assets of £162m, with investors including the late Lord Rothschild, Jeremy Darroch, Nicholas Ferguson, the Marquess of Linlithgow, and the family of Reo Stakis.
Gresham House denied being one of the largest private landowners in Scotland, arguing the land is ultimately owned by its investors.
A Gresham House spokesperson said most investors in its funds are institutional and do not consider inheritance tax benefits.
The spokesperson added that Todrig’s current design includes a commitment to retain about 40% of the site as open ground.
Open questions
The article does not specify the outcome of the legal challenge or whether Gresham House will proceed with its forestry plan after the re-determination.
Key figures
Camilla Fowler, chair of Lilliesleaf, Ashkirk and Midlem community council
David Lintott, barrister and campaigner via Restore Nature
Anton Baskerville, of Woodlands.co.uk
Dr Josh Doble, director of policy and advocacy at Community Land Scotland
Guy Hands, private equity tycoon, and Julia Hands, hotelier
Anders Povlsen, billionaire Danish retail magnate
Apithanny Bourne, researcher at Butterfly Conservation
Gresham House (company)
True North Real Asset Partners (company)
Sources: The Guardian
