FAQ’S

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Carbon sequestration – Forests of Sitka spruce absorb 161 tonnes of Carbon per hectare

Improving air quality – Trees absorb, transport and decompose many air pollutants

Providing outdoor recreation – 350 million recreational visits a year are made to UK forests

Supporting Biodiversity – Forests provide sheltered habitats for wildlife, often supporting endangered species

Regulating water supply & quality – Forests nurture the soils that are key to water retention, filtering & quality

Produces renewable and energy efficient construction materials – As forests are harvested, the trees are replanted to begin the next forest cycle. Timber also has a much smaller carbon footprint than other materials such as steel and iron

superior

Source: Gresham House calculations using Bloomberg data, IPD All Property and UK Commercial Forestry, MSCI World / Emerging Markets index, Matterley (Charles Stanley plc) – data up to 31st Dec 2014.

positioning

Source: Mercer Capital Markets UK Capital Market Assumptions 31 Dec 2015 Asset class forecasts & Gresham House Forecast and Calculations for UK Forestry

Tax free income – Proceeds from UK timber sales are tax-free whether the asset is held personally or by a company

Tax free capital gains – Increase in value of standing timber is exempt from capital gains tax (excluding increase in underlying land values)

Capital gains roll-over – Proceeds from the sale of capital assets can be reinvested in UK commercial forestry land to defer the capital gains

No Inheritance tax – Qualifies for Business Property Relief after two years of ownership