Tax free investments * avoiding Inheritance Tax * investing in woodland to avoid paying IHT * CGT * income and corporation tax * Forestry offers come of the best tax free investment opportunities

Take returns from Trees tax free and mitigate IHT

Timing is everything in investment, and for many of you, now may be the right time to have a good part of your portfolio invested in trees.

You don't need to own your own forest to make money, and tax free money at that, from growing trees. You can achieve the same result by investing in a forestry fund which offers you a share in several forests which they manage for you and its other investors.

Take a look now at what has been happening to returns from forestry investment compared to other main sectors for UK investment in the last 3 to 5 years.

During that period returns from UK Forestry investments have caught up and overtaken returns from the previous favourites, equities and commercial (and residential) property. Yes, equities and property have had a good run recently, but it is time now if you haven't already done so, to question whether they have now run out of steam?

Astute investors think so and are looking elsewhere to continue making high returns. Current sentiment is that Forestry is far more likely to provide high and sustainable returns over the next five years.

Figures from Investment Data Bank, IPD, clearly show what has been happening:

Long term performance to December 2006
  3 years 5 years
Total return 20.6 14.67.8
Timber price change 13.811.61.0
Other Assets 
Equities 16.817.28.5
Gilts -
Commercial Property 18.118.515.1

IPD Research director Malcolm Frodsham said, "Forestry returns have richly rewarded their investors in 2006, out performing equities, gilts and commercial property. The combinations of a range of investor types that have been keen to buy into the sector, rising agricultural land values and rising timber prices have all contributed to the return and show no signs of abating in 2007".

Tax free investment in woodland
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