Joint Statement from Confor, CLA and RFS

An update for our members on the Inheritance Tax and Woodland Ownership Survey

We would like to thank all woodland owners, estate managers and agents who took the time to respond to our recent survey on inheritance tax changes and woodland ownership. 

The survey attracted 204 responses from across the UK, which has painted a clear picture of the specific impacts of inheritance tax changes on forestry and the concerns felt among woodland owners.  

The Confederation of Forest Industries (Confor), the Country Land and Business Association (CLA) and the Royal Forestry Society (RFS) have now finalised the survey report and we are pleased to share the findings with our members.  

Purpose of the Survey

The survey was undertaken to better understand how the April 2026 changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) may affect woodland owners, forestry businesses and mixed estates in practice, and to provide strong evidence to inform discussions with Government. 

While we recognise and welcome the Government’s decision to increase the allowance for 100% APR/BPR from £1 million to £2.5 million per person, the survey evidence suggests that woodland owners and mixed estates remain more exposed than national estimates imply. 

Key findings

The report highlights several themes:  

  • Only around one third of respondents believe they will not be affected by the changes, with almost half expecting to be affected and others remaining uncertain. 
  • Nearly 60% of respondents say they are now less likely to create new woodland, directly conflicting with Government woodland creation ambitions. 
  • Many respondents are considering earlier timber harvesting, selling woodland, altering succession arrangements or reducing future investment in woodland management. 
  • The survey reinforces that forestry is often a high-value but low‑income asset, with standing timber creating capital value but generating irregular and long‑term returns. 
  • Family-owned woodland and mixed estates appear particularly vulnerable, with risks of fragmentation, earlier felling and reduced long-term management. 
  • The evidence suggests potential impacts on domestic timber supply, carbon storage, nature recovery and continuous cover forestry. 
           

          Read the full report

          This report summarises the findings of a joint survey undertaken by Confor, the CLA and the RFS to understand how the April 2026 changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) may affect woodland owners.

          Read the report VisualV1 - ArrowCreated with Sketch.

          Why woodland is different

          A strong message from respondents is that forestry differs fundamentally from most other business assets: 

          • Woodland is managed over multidecadal or multi‑generational timescales. 
          • Income is often insufficient to build reserves to meet future inheritance tax liabilities. 
          • Woodland owners are obligated to restock after felling, meaning they may be taxed on an asset whose value they are obliged to recreate. 

          These characteristics mean that inheritance tax can have disproportionate and unintended behavioural effects in forestry. 

          Engaging with Government

          On behalf of our members, Confor, CLA and RFS are now formally engaging with HM Treasury, with Defra and the Forestry Commission copied into discussions. 

          The survey report has been shared with officials to support a constructive dialogue, building on earlier correspondence and acknowledging the concession already made by Government in raising the APR/BPR threshold. 

          A particular area identified for discussion is whether a reformed Woodlands Relief could be a solution for mitigating unintended impacts on woodland creation, timber supply and nature recovery. The report outlines a potential approach that would treat woodland land and timber as a single asset and defer inheritance tax until woodland is sold, while still ensuring tax is paid if value is ultimately realised. 

          We believe this could be a realistic solution for protecting long-term woodland management and family ownership.  

          Next steps

          Our immediate priority is direct engagement with Government based on the evidence provided by members. We believe this is the most effective approach before any wider public or media discussion of the findings. 

          We will keep you updated on progress with Government discussions and continue to work jointly to ensure woodland, forestry and mixed estates are properly understood within future tax policy discussions. 

          Once again, thank you to all those who contributed evidence. Your input has strengthened our position and our ability to engage with Government constructively on this matter.  

          Confor, CLA & RFS