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Sun, 10 Jul, 2016 12:10:54 AM FTimes – STT Report, Jul 10  File Photo – Lehtikuva. The government wants to increase tax relief on forest land succession.
Through the so-called forest gift deduction, a maximum of half of the gift tax payable in connection with succession may be subject to tax relief in future timber sales.
There will, however, be no tax relief when it comes to inheritance tax.
The forest gift tax proposal by the government is currently under preparation by the Ministry of Finance.
It is aimed at calculating the average age of Finnish forest owners.
“At the moment, forest owners have an average age of 54 years, so even the youngest of forest owners are not so much young,” said Central Union of Agricultural Producers and Forest Owners (MTK) Forest Director Hakkarainen.
The higher average age of forest owners is problematic, because the timber sales activities drop significantly after the age of 75, Hakkarainen said.
Twelve per cent of Finnish forest areas is owned by over 75-year-olds.
The tax relief will concern small forest lands.
According to the current draft, the reduction would only apply to forest lands whose value is over 40,000 euros.
Based on the law determining the value, the specified value is significantly lower than the selling price of forest land.
Presently, the law would apply to about 40-50 hectares of forest land in southern Finland, said Natural Resources Institute Finland-Luke Senior Researcher Harri Hänninen.
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