TAXATION OF WOODLANDS IN SCOTLAND. 117 



affecting woodlands, as it is found in practice that proprietors do 

 not feel justified, in consequence of the present onerous burdens 

 on this class of property, in proceeding with planting schemes. 



The creation in the near future of a Forest Authority for the 

 United Kingdom, and the urgent national necessity for the 

 replanting of felled areas and the afforestation of additional land, 

 present a favourable opportunity for arriving at a proper method 

 of assessment for Imperial taxation in the case of woodlands 

 managed on a commercial basis, and with this in view the 

 following suggestions are submitted : — 



1. That in respect there is no other class of property, so far 



as known, which is treated both as capital and also as 

 income for the purpose of taxation, the present practice 

 of levying Death Duties on the capital value of the 

 timber should cease, and that Imperial taxation should 

 be limited to Income Tax on the net profits derived. 



2. That in respect woodlands are not suited in any way for 



letting, either on yearly tenancy or even on lease, and are 

 invariably and necessarily in the occupation of the owner, 

 the profits obtained from the ownership and occupation 

 thereof are one and indivisible and should be assessed 

 under a single schedule. 



3. That in respect on most estates old woods predominate in 



area a special allowance should be made, prior to assess- 

 ment, on account of the accumulated amount of Income 

 Tax paid in the past under both Schedules A and B. 



4. That in respect the present method of assessment under 



Schedule B is based upon too limited a period, the net 

 profits should be ascertained over an extended period 

 and the system of calculating the same substantially 

 modified and put upon an equitable basis. 



With the view of effecting the above the following scheme, 

 which is necessarily in rough outline and without elaboration of 

 ■details, is submitted : — 



1. Any owner of woodlands to have the right to elect to be 



charged to Income Tax under Schedule D in place of 

 Schedule B. 



2. Any owner electing to be assessed under Schedule D, as 



aforesaid, to furnish the National Forest Authority with 

 a schedule showing the total acreage of the woodlands 



