Forestry Investment Management‘s (FIM) latest trust has sucessfully closed with more than £2.4m subscribed.
The company said it had acquired or agreed terms on seven forests which will see its Timber Growth Fund fully invested.
Colin Lees-Millais, FIM director, said the fund showed a significant increase in two types of investors – those who think timber prices will go up from the current low point, and those using the investment to mitigate a potential inheritance tax liability.
Timber revenue is exempt from income and capital gains tax, and after two years of ownership qualifies from 100% inheritance rax relief.
FIM has more than £90m invested in 48,000ha of commercial timber in the UK.
