Farm Finance: What are the tax implications of felling damaged forests?

Forest owners will be pleased to know that insurance proceeds relating to the damage of forests can be exempted from income tax, writes rural accountant Kieran Coughlan

Almost 24,000 hectares of forestry has been damaged by Storm Éowyn ; this is about 3% of all forestry land in the Republic of Ireland. File picture

Many owners of damaged forestry are still in limbo. Michael Healy-Rae, minister of state at the Department of Agriculture, Food and the Marine with special responsibility for Forestry, Farm Safety and Horticulture has said that almost 24,000 hectares of forestry has been damaged by Storm Éowyn; this is about 3% of all forestry land in the Republic of Ireland.

A significant portion of these plantations will need to be clear-felled either partially or fully. Forest owners are frustrated that clear-felling licences are needed in order to get the timber extracted.