As a result of an imaginative scheme put together by Fountain Forestry, one of the leading forestry management companies in the UK, and the Royal Bank of Scotland, millions of pounds of private investors’ money has been put into the purchase of forestry land and capital works.
Planting and establishment costs rank for tax relief against income from other sources, so forestry provides a means for the investor to create a capital asset out of income. Interest on loans for forest land purchase is regarded as an allowable expense within forest establishment costs, providing relief from CGT and CTT, in addition to producing tangible captal growth.
Bill Dodds, managing director of Fountain Forestry, said: “The Fountain Forestry/the Royal Bank of Scotland loan scheme has been of powerful assistance to forestry investors who have established new forest resources, particularly in Scotland. This afforestation provides a solid support to the Government’s forest policy, which makes clear that the major part of new investment in afforestation should come from the private sector.”
A pamphlet giving details is available from Fountain Forestry, Isla Road, Perth (0738 38425), or from the Royal Bank of Scotland, South Street, Perth (0738 32051).
