60% of landowners less likely to plant trees after IHT reforms

Inheritance tax changes are threatening the future of tree planting in the UK, with a majority of landowners now less likely to invest in new woodland.

A new survey shows 60% of woodland owners, estate managers and land agents are less inclined to create woodland following reforms to Agricultural Property Relief and Business Property Relief introduced in April 2026 — raising concerns for net zero, biodiversity and timber supply targets.

The findings, from Confor, the Country Land and Business Association (CLA) and the Royal Forestry Society (RFS), suggest the changes are already influencing behaviour, particularly among mixed estates and farm businesses where woodland forms part of wider land use and diversification.

Many respondents said they are considering earlier timber harvesting, selling woodland or scaling back long-term investment, signalling a shift towards shorter-term decision making.

Only around a third said they expect no impact, while nearly half anticipate being affected, highlighting widespread uncertainty across the sector.

Stuart Goodall, chief executive of Confor, said the survey provides “compelling evidence” that woodland owners expect negative consequences.

He warned that reduced planting and changes in management could “undermine delivery of government's own policies on nature recovery, carbon, timber supply and the rural economy”.

The findings point to a growing tension between tax policy and environmental ambition, with industry leaders warning that reforms designed to improve fairness could have unintended consequences for long-term land management.

Gavin Lane, president of the CLA, said woodlands risk becoming “unintended casualties of the government’s inheritance tax changes”.

He warned that reduced planting, earlier felling and land sales could put legally binding environmental targets at risk, adding: “This evidence suggests those goals are now in danger.”

Christopher Williams, chief executive of the RFS, said key national objectives are “all threatened by the changes to inheritance tax”.

He added that “tree planting is under threat, trees are being felled prematurely, and some woods are being sold off”, describing the outcomes as unintended but significant.

The survey, based on 204 responses from across the UK, also highlights the distinct challenges of forestry compared with other sectors.

Woodland is managed over long timescales, often spanning generations, while income can be limited and reinvestment is required after felling. This means owners can face tax liabilities on assets they are obliged to recreate, increasing the risk of decisions that prioritise short-term cashflow over long-term sustainability.

The potential impact extends beyond individual estates, with implications for timber supply, carbon storage, nature recovery and the resilience of farm businesses that rely on woodland as part of their income.

While industry bodies welcomed the government’s decision to increase the threshold for full relief to £2.5 million per person, they said the survey indicates woodland owners remain more exposed than headline figures suggest.

The organisations are calling for further engagement with government to ensure the full impact is understood and to avoid undermining progress on tree planting and environmental targets.

Without changes, the sector warns that investment in new woodland could continue to decline — putting long-term climate, biodiversity and farming sustainability goals at increasing risk.