NOTES AND QUERIES. 217 



NOTES AND QUERIES. 



Taxation of Woodlands. 



The following correspondence has taken place between the 

 Forestry Commission and the Board of Inland Revenue, 



London : — 



Forestry Commission, 



22 Grosvenor Gardens, S.W. i., 



zoth October 1920. 



Sir, — I am directed by the Forestry Commissioners to state 

 that a question has been addressed to them as to the position 

 of an owner who places his woodlands under Schedule D as and 

 when they are felled and replanted. 



They understand that if a woodland is cut and immediately 

 replanted the proceeds of the cut on a three year average will 

 have to be brought into account, and will, subject to deduction 

 of expenditure, be liable to taxation. 



This would undoubtedly be correct when fellings take place 

 after the area has been placed under Schedule D, but it is 

 contended that, in cases where the area is under Schedule B 

 at the time of the felling and has paid tax under that Schedule 

 throughout the period of growth, the proceeds from it should be 

 exempt from further taxation. 



If it is decided that such proceeds are liable to taxation, 

 the result may be that owners will, for the purpose of avoiding 

 the tax, refrain from replanting until three years have elapsed. 



In the opinion of the Commissioners this result should be 

 avoided if possible, as, in the interests of the forest policy, 

 denuded areas should in most cases be replanted without delay. 



I am to state that the Commissioners would be glad to have 

 your opinion on the matter. — I am, Sir, your obedient servant, 



A. G. Herbert. 

 The Secretary, 



Board of Inland Revenue. 



Inland Revenue, 



Somekset House, London, W.C., 



%th November 1920. 



Sir, — With reference to your letter of the 20th ultimo, I am 

 directed by the Board of Inland Revenue to state that where 

 woodlands have been assessed under Schedule B, and the 

 vol. xxxiv. part 11. p 



