What is the taxation status of a renewable energy investment? When the renewable energy investment is biomass or woodpellet's in this case. Then the Wood pellets are treated in the same way as a timber product and therefore fall under the same current tax legislation that applies to timber and forestry assets in the UK.
Income generated from commercial forestry is exempt from both income tax and corporation tax
The UK government introduced tax legislation to incentivise the growth and development of forestry and wood based products to encourage the development of the UK timber and forestry industry.
The driving force behind these generous tax breaks is a UK Government commitment to increase the forestry coverage from the current level of 11% to 17% in the UK by the year 2030. These tax breaks are to encourage land owners and private investors alike to plant and maintain commercial forests. The end result will be a higher percentage forestry coverage in the UK and a reduction in the CO2 emissions as a result of making the UK a more eco f