(1)[F1Subject to subsection (1A),] the cultivation of short rotation coppice shall be regarded for the purposes of the Tax Acts and the M1Taxation of Chargeable Gains Act 1992 as farming (and, where relevant, as husbandry or agriculture) and not as forestry; and land in the United Kingdom on which the activity is carried on shall accordingly be regarded for those purposes as farm land or agricultural land, as the case may be, and not as woodlands.
[F2(1A)Subsection (1) does not apply for the purposes of the Income Tax (Trading and Other Income) Act 2005 (in relation to which section 876(3) and (4) makes corresponding provision).]
(2)For the purposes of the M2 Inheritance Tax Act 1984 the cultivation of short rotation coppice shall be regarded as agriculture; and accordingly for those purposes—
(a)land on which short rotation coppice is cultivated shall be regarded as agricultural land, and
(b)buildings used in connection with the cultivation of short rotation coppice shall be regarded as farm buildings.
(3)In subsections (1) and (2) “short rotation coppice” means a perennial crop of tree species planted at high density, the stems of which are harvested above ground level at intervals of less than ten years.
(4)Subsection (1) and subsection (3) so far as relating to subsection (1) shall be deemed to have come into force on 29th November 1994.
(5)Subsection (2) and subsection (3) so far as relating to subsection (2) shall have effect in relation to transfers of value or other events occuring on or after 6th April 1995.
Textual Amendments
F1Words in s. 154(1) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 481(2) (with Sch. 2)
F2S. 154(1A) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 481(3) (with Sch. 2)
Marginal Citations