There is no Capital Gains Tax (CGT) on trees
Capital Gains arising on the sale of woods are exempt from CGT in the hands of the individual. Any gain attributable to the land is included in the computation of CGT; indexation relief may eliminate any chargeable gain. [S. 564 Taxes Consolidation Act, 1997]
Capital Acquisitions Tax - significant relief
Gifts or inheritances of woodlands within the Republic of Ireland can qualify for Agricultural Relief under CAT. This is a complex area of taxation requiring careful assessment of individual circumstances.
Value Added Tax (VAT) may be reclaimable
Forestry, for VAT purposes, is similar to farming activities. Non registered farmers may, in some cases, be able to claim VAT on expenditure on ground preparation and fencing. Claims by Unregistered Farmers for Refund of Value Added Tax should be sent to: Revenue Commissioners, River House, 3rd Floor, Charlottes Quay, Limerick (Lo-Call 1890 252449) or look up the Revenue website [Value Added Tax (Refund of Tax) (No. 25) Order, 1993]
The 1990 Finance Act exempted from stamp duty the value attributable to growing trees, managed commercially, on conveyances or transfers of forestry land by sale or lease. Conditions apply.
Profits from the occupation of woodlands managed on a commercial basis with a view to profit are taken into account when estimating reckonable income for PRSI purposes the relevant Section 8 of the Social Welfare (Miscellaneous Provisions) Act 2008 came into effect on 1 January 2010). This overwrites the provisions of Section 140, TCA 1997
WOODLAND can guide you on forestry taxation matters. As individual circumstances can affect your tax position, we recommend that you refer to your tax advisor, if in doubt, before finalising an investment or disposal or family settlement decision.