England and Wales
Woodland management in England and Wales is subject to strict regulation, while at the same time offering ample scope to attract public and private funding through grants and carbon credits.
Rules and legal framework: Woodland owners must comply with the UK Forestry Standard (UKFS), which sets out the principles of sustainable management.
Felling licences: Felling operations require a specific licence, issued by the Forestry Commission in England or Natural Resources Wales in Wales. Without a licence, a woodland owner may fell no more than 5 cubic metres of timber per quarter and may sell only 2 cubic metres; otherwise they face an “unlimited” fine.
Planning permission: The construction of forestry buildings and roads is often covered by so-called permitted development rights (Permitted Development rights), which means that full planning permission may not be needed if the structure is “reasonably necessary” for the management of the woodland.
In England and Wales, owners must allow for the public’s right to move along certain paths and across common land under the Countryside and Rights of Way Act 2000.
Compensation and grants: The government offers considerable financial support for planting new woodland and maintaining existing woodland in both England and Wales.
The England Woodland Creation Offer (EWCO): Up to £10,200 per hectare is available for woodland creation, along with additional payments of up to £12,700 where the woodland delivers public benefits or nature recovery.
Welsh woodland support schemes: These offer up to 100% funding for capital investment – planting and fencing – as well as annual maintenance payments over 12 to 15 years.
Planning grants: Grants for drawing up woodland creation plans are available in both England and Wales, typically ranging from £1,000 to £5,000 (depending on the area).
Carbon credits
Woodland owners can earn additional income by selling carbon credits through the Woodland Carbon Code (WCC). Only new planting registered before work begins can generate credits. Pending Issuance Units (PIUs) are awarded at the outset and are converted over the years, as the trees grow, into Woodland Carbon Units (WCUs). Last year the average auction price was around £26.85 per unit, though prices can vary considerably depending on the quality of the project. A guarantee is available in England only – the Woodland Carbon Guarantee offers the option of selling credits to the government at a guaranteed, index-linked price every 5 or 10 years.
In Scotland and Ireland, woodland holdings have become high-value assets in 2026, thanks to state support for carbon sequestration and stringent environmental protection standards.
Scotland
Scotland has one of the most active woodland markets in Europe, where both commercial timber growing and “green” investment play a significant role.
Rules: Activity is governed by Scotland’s Forestry and Land Management Act (https://www.forestry.gov.scot/forestry-and-land-management-act). The key requirement is obtaining felling permissions (Felling Permissions); clear-felling without immediate restocking is generally prohibited. The 2025 Natural Environment Bill (https://bprcdn.parliament.scot/published/2025/4/29/95cf3cc7-994a-491b-b0fa-ca0eacfb7415/SB%2025-18.pdf) tightens the rules on biodiversity and deer population control in order to protect young stands.
Compensation and support: Through the forestry grant scheme (https://www.forestry.gov.scot/publications/briefing-note-50-forestry-grant-scheme-budget-update) (Forestry Grant Scheme), Scottish woodland owners receive funding to plant new woodland and improve existing woodland. Conventional compensation for restrictions on economic activity is built into long-term “green” payments for carbon credits and nature restoration
Price levels: The average value of commercial woodland in the United Kingdom, where Scotland accounts for the majority of transactions, has risen to around £19,200/ha (~EUR 23,000/ha). Depending on the age of the trees and accessibility, prices can range from £10,000 to £30,000/ha and above.
Ireland
In Ireland, the forestry sector is subsidised with the aim of increasing forest cover from the current ~11% to 18% by 2050.
Rules: Ireland’s Forestry Programme 2023-2027 (https://www.gov.ie/en/department-of-agriculture-food-and-the-marine/publications/forestry-grants-and-schemes/) provides that the state covers up to 100% of the cost of planting. Owners are obliged to maintain the woodland; deforestation in Ireland is almost impossible, and felling operations require specific licences.
Compensation: For establishing new woodland, owners receive an annual, tax-exempt premium for 15 to 20 years. The sums range from EUR 746/ha to EUR 1,142/ha per year. Special payments of up to EUR 5,000/ha are available for restrictions relating to tree diseases such as ash dieback.
Price levels: Agricultural and forest land prices in Ireland continue to rise. The average price per acre is around EUR 12,000-14,500, which works out at an average of EUR 25,000-35,000/ha. Poorer-quality land, better suited to woodland, may cost around EUR 15,000-20,000/ha.
An overview of the financial benefits for woodland owners in Scotland and Ireland in 2025/2026.
Scotland
The carbon credit market (Woodland Carbon Code)
Scotland is a leader in the voluntary carbon market. Here, woodland is not just timber but a “carbon bank”.
If an owner plants new woodland, they can register the project under the Woodland Carbon Code. A calculation is made of how many tonnes of CO₂ the woodland will sequester over the next 100 years. The owner receives so-called Pending Issuance Units (PIUs), which can be sold to companies such as banks or airlines wishing to offset their emissions.
In 2025, one carbon unit – one tonne of CO₂ – cost approximately GBP 25-40. Depending on the tree species, one hectare can sequester 300-500 tonnes of CO₂ over the long term, which means additional income of GBP 7,500-20,000/ha on top of state grants. Income from the sale of carbon units by private individuals in Scotland is currently exempt from income tax and capital gains tax.
Ireland
Tax reliefs and premiums
Ireland has created a system to make forestry financially more attractive than livestock farming. Under the new forestry programme running to 2027, payments are guaranteed for 20 years for farmers and 15 years for other private owners.
For example, woodland attracts around EUR 746/ha per year. For native broadleaf woodland (oak, beech), the figure is as much as EUR 1,103/ha per year.
Profits from timber sales and state forestry premiums are entirely exempt from income tax, although social contributions – USC/PRSI – may apply to them.
Forest land qualifies for Agricultural Relief, which reduces the taxable value of the property by 90% if the heir continues to manage it. This is critically important for keeping large holdings in family hands.