Income earned by the limited partnership in a tax year, such as from harvest, is taxable at the investor level. This taxable income (or loss) is noted on your Tax Details Statement each year. Investors may or may not have seen any cash yet from this income.
Distributions paid to investors is simply the surplus cash available. What is available depends on the timing of payment for logs we’ve supplied, and what expenses need to be met throughout harvest. Income from one tax year can be paid in another.
It is important that you declare the taxable income, not the distributed income, in your tax return.
Throughout the harvest programme, a small amount of taxable income is retained to fund the construction of roads and other harvest infrastructure, the replanting of harvested areas or other investment costs. Retained income will be returned to investors, either through the depreciation charge in the investment’s financial statements or the sale of the replanted trees at the conclusion of harvest.
Our aim is to pay surplus funds to investors as soon as possible, as this is your money and we do not want to hold on to investors funds any longer than necessary.