At the present time, income from commercial woodlands (i.e. selling felled trees that have been prepared for removal from the land) is outside the scope of income tax. Does that mean that it is simply not reported in the Self-Assessment return? Left out completely?
Part of me can't quite believe it.
Andy
-- Edited by AICB on Friday 16th of September 2011 02:34:08 AM
From what I recall, Bill, it was the age of wooden warships et al (c. Henry VIII) that actually ushered in the days of general income taxation - to pay for them all! What we have now originated in March 1988 (for Henry VIII, read Mrs Thatcher) when owners of commercial woodlands - and the investors who came along behind - were handed this tax exemption. I can remember the furore drummed up by the papers (the media not yet having been invented) over the likes of Terry Wogan ploughing millions into forestry and so avoiding income tax. So nothing has changed much - the Government makes the rules and the media castigates investors for playing by them.
Nevertheless, with the Government's (all Goverments') mania for financial statistics, I am surprised that they don't want to know everything about all the money that people earn, even if they don't collect tax on it. How else can they decide when to rescind the regulations to their advantage? Perhaps they collect the stats through CT returns - but that wouldn't work where the owner isn't incorporated. Bookkeeping certainly leads us into strange byways!
I'd feel the same, and would cover myself by mentioning that income on the SA white space and/or seeking technical guidance from HMRC.
The Gov't would get a cut from the VAT and perhaps there is some way they gather statistics through those Returns, or perhaps a declaration to the Forestry Commission.
, and needed every stick to build ships of the line)
