Finance Act 1988

4 (1) Where this paragraph applies in relation to a person’s occupation of any commercial woodlands—

(a) that person; or

(b) in the event of his death, any other person who occupies them by virtue of any disposition (whether effected by will, under the law relating to intestacy or otherwise) of property comprised in his estate immediately before his death,

may elect to be assessed and charged to tax in respect of them under Schedule D; and the reference in this sub-paragraph to a disposition includes a reference to a disposition as varied under section 142 of the [1984 c. 51.] Inheritance Tax Act 1984.

(2) This paragraph applies in relation to a person’s occupation of any commercial woodlands if—

(a) he had entered into a contract or made arrangements before 15th March 1988 for his occupation of them;

(b) he was occupying them on that date; or

(c) he is or was occupying them after that date and the requirements of sub-paragraph (3) below are satisfied with respect to the land which comprises them;

and in this sub-paragraph and sub-paragraph (3) below “arrangements” does not include arrangements which are not evidenced by an instrument or other document made before that date.

(3) The requirements of this sub-paragraph are satisfied with respect to any land which comprises commercial woodlands if, before 15th March 1988, the person who is or was occupying them after that date—

(a) had entered into a contract or made arrangements for the afforestation (including the replanting) of the land; or

(b) had made an application for a grant under section 1 of the [1979 c. 21.] Forestry Act 1979 or section 2(1)(e) of the [1953 c. 2 (N.I.).] Forestry Act (Northern Ireland) 1953 with respect to the land;

and for the purposes of paragraph (b) above an application shall be treated as made when it was received by the Forestry Commissioners or, in Northern Ireland, by the Department of Agriculture.

(4) Subject to sub-paragraph (5) below, an election under sub-paragraph (1) above—

(a) shall be made by notice in writing given to the inspector not later than two years after the end of the chargeable period to which the election relates;

(b) shall have effect not only in relation to that period but also, so long as the person by whom it is made continues to occupy the woodlands, in relation to subsequent chargeable periods; and

(c) shall extend to all woodlands on the same estate.

(5) An election made under sub-paragraph (1) above in respect of any commercial woodlands shall not have effect in relation to any chargeable period if before the beginning of that period a relevant grant has been made with respect to any land which comprises woodlands on the same estate.

(6) For the purposes of sub-paragraphs (4) and (5) above, woodlands shall be treated as being on a separate estate if the person occupying them so elects by notice in writing given to the inspector not later than two years after the time when they are planted or replanted.

(7) An election under section 111 of the Taxes Act 1970 made before 15th March 1988 in respect of any commercial woodlands by a person who, on that date, was occupying those woodlands shall have effect as if made under sub-paragraph (1) above.

(8) In this paragraph and paragraph 5 below “relevant grant” means a grant under section 1 of the Forestry Act 1979 or section 2(1)(e) of the Forestry Act (Northern Ireland) 1953 which—

(a) is made on terms and conditions first published after 15th March 1988; and

(b) is not made by way of supplement to a grant made on terms and conditions first published before that date.

(9) This paragraph shall be deemed to have come into force on 15th March 1988 and shall cease to have effect on 6th April 1993.