Irish Forestry Services has broken into the British market with a scheme to raise £5 million sterling (€7 million) for forestry in Scotland.

The group has opened its first British fund just days after securing approval from the British Financial Services Authority for the plan - the first of its type available to private British investors.

Director Mr Declan Kennedy said the company had decided the time was now right to transfer its successful Irish business model to the larger British market.

"We have done very well in Ireland over the last few years and have proved very popular," he said. "But there is a limit to the market's size and we felt it was an opportune time to introduce the idea into Britain.

"While there has been considerable investment by high net worth individuals in forestry in the UK, there has been no opportunity till now for smaller investors to participate."

Forestry investment in Britain, like Ireland, carries no tax liability on profits.

However, Irish investors will not be able to buy into the British funds, tax free as the Revenue relief on forestry investment applies only to plantations in the State.

Irish Forestry Services will run the operation through a subsidiary, Forestry Management Services (international) Ltd. Director Mr Trevor McHugh will run the British unit, which will be based in Bristol.

The company has been running 10- and 30-year forestry investments and managing plantations on behalf of investors in Ireland since 1996.

Its forestry portfolio is valued at €40 million and the company has more than shareholders in the 12 plans its has run to date.