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The Twelfth Forestry Growth Plan Plc - launching Mid-October Click on the question to get the answer. What is the Twelfth Forestry Growth Plan Plc? The Twelfth Forestry Growth Plan Plc (FGP) is a twelve year forestry investment opportunity which focuses on the acquisition of semi - mature forestry (15-20 years of age) and bare land. The Twelfth Forestry Growth Plan Plc was incorporated for the purpose of raising approximately €2 million (TBC) to invest predominately in semi-mature woodlands. Investment in the Company is by way of preference shares. The minimum investment is €750. Multiple shares may be purchased. Shares can be purchased by Investors for themselves or for others e.g. children and grandchildren or in joint names. What is the term of the investment in the Twelfth Forestry Growth Plan Plc? The Twelfth Forestry Growth Plan Plc has a twelve year investment term. After this term the company will be wound up and the afforestated lands will be sold on the open market with all
What are the tax implications when the share matures? Profits from the occupation of woodland managed on a commercial basis are exempt from Income and Corporation Tax. The Twelfth Forestry Growth Plan Plc has been designed to take advantage of these provisions. Profits arising from the sale of the underlying lands may be taxable in accordance with tax legislation. Profits from the sale of the underlying land will constitute a small fraction of the total returns. Returns generated from other sources will be taxable. Under current legislation distributions, to the extent that they represent profits made from the occupation of woodland managed on a commercial basis, are exempt from Income and Corporation Tax. To the extent that distributions are made out of non-exempt profits they will be taxable in the hands of the Investor and dividend withholding tax may also apply to the taxable portion of the distribution. However, in accordance with legislation introduced by the Finance Act 2006, where an Investor avails of relief’s or exemptions from tax in any year, which in aggregate exceed €125,000, a restriction of such relief’s may apply and in consequence not all of any distribution made from the profits derived from the occupation of woodland managed on a commercial basis may be treated as exempt. Any amount so disallowed may be carried forward for
What is the average shareholder’s investment?
Has this changed recently? Yes. We have seen the average level of investment decrease over the past three years
What might be the factors be that have influenced new investment into forestry? Many individuals have switched from an over-dependence on equities to using Forestry to spread their investment portfolios. Longterm forestry is stable, secure and relatively predictable. According to investment guru Jeremy Grantham, Chairman of the US based fund managers Grantham, Mayo Van Otterloo, investment in timber has outperformed the Standard & Poor’s index since 1910. Furthermore he recently stated in a Financial Times interview that ‘trees are the only asset class to go up in three out of the four market collapses of the 20th century’. Who verifies your figures? The projections are independently assessed by Forest Enterprises Limited, one of
What are the strengths in Forestry Investment? Apart from the projected rate of return of 6.50% (TBC) per annum attributable to forest growth value, forestry provides other benefits such as:
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