Section 156 | Purchase or sale of woodlands

(1)This section applies for the purpose of calculating the profits of a trade of dealing in land.

(2)If the person carrying on the trade buys woodlands in the United Kingdom in the course of the trade, the part of the cost of the woodlands which is attributable to trees or saleable underwood growing on the land is ignored.

(3)If—

(a)the woodlands are subsequently sold in the course of the trade, and

(b)any of the trees or underwood are still growing on the land at the time of the sale,

the part of the price that is equal to the amount ignored under subsection (2) for the trees or underwood is ignored.