Inheritance tax changes ‘threaten’ UK tree planting

The report suggests landowners may be less likely to plant trees due to the policy shift, with more than 200 woodland owners, estate managers and agents taking part in the study.

The survey was conducted by the Country Land and Business Association (CLA), the Confederation of Forest Industries (Confor), and the Royal Forestry Society (RFS).

Gavin Lane, president of the CLA, said: “A drop in tree planting, earlier felling, land sales – these are the warnings from the UK’s forestry sector, as woodlands risk becoming unintended casualties of the government’s inheritance tax changes.

“We know these reforms are hurting family-owned businesses across the UK, but their impact on forestry has received far less attention.”

Mr Lane said: “The government has legally binding environmental targets and ambitions to accelerate tree planting.

“This evidence suggests those goals are now in danger, undermining the sector and the investment made to date.”

Just one third of respondents in the survey said they believed they would not be affected by the tax changes.

Almost 60 per cent said they were now less likely to create new woodland, directly conflicting with government woodland creation ambitions.

In response to the policy changes, many landowners are now considering earlier timber harvesting, woodland sales or adjusting succession plans. Others said they may be reducing future investment in woodland management.

The survey highlights that while forestry can represent significant capital value, it often yields low income and long-term, irregular returns.

Family-owned woodlands and mixed estates are seen as especially vulnerable, facing risks of fragmentation, earlier felling and reduced long-term management.

Such trends could carry serious consequences for domestic timber supply, carbon storage, nature recovery and continuous cover forestry.

The evidence is being sent to the Treasury and Defra, with the CLA also writing to MPs and other industry stakeholders highlighting the concerns of our members.