Question to the HM Treasury:

To ask the Chancellor of the Exchequer, for what reason the application of Capital Gains Tax relief on trees from which private owners of established conifer woodland benefit after the first 10 years.

Where businesses dispose of assets, they may qualify for capital gains tax relief if the proceeds are reinvested in new business assets (known as Business Asset Rollover Relief). Land used for “short rotation coppice” (i.e. cutting back a tree at intervals of less than 10 years to harvest the stems) is defined by statute as land used for farming activities. Forestry businesses on woodland where trees are felled less frequently may still qualify for this relief, where they can demonstrate that the woodland is managed on a commercial basis and with a view to the realisation of profits.