TREES planted as a tax dodge are being felled to help restore an area of bog to its natural state.

A £135,000 funding package was announced yesterday by Scottish Natural Heritage (SNH) to carry out the work at Altnabreac in Caithness.

The money has been awarded to the Royal Society for the Protection of Birds (RSPB) to remove the conifer plantation due to its damaging impact on the underlying blanket bog and potential effects on peatland that is of international importance.

During the 1970s and 1980s, non-native trees were planted in the area in a tax loophole created under the Thatcher government. Until 1988, any investment in woodland could be written off against personal income tax.

Among those who bought land were celebrities such as Cliff Richard and Terry Wogan. The loophole was closed after pressure from environmental groups, concerned that the peatlands were being destroyed.

The 365-acre forest block now being cleared was planted in the 1980s. It has just been bought by the RSPB, which plans to start tree-felling this month.

Drains were cut into the deep peat prior to tree planting. In addition to the damage caused by the drainage, the growing trees dry out and further damage the peatland habitat.

Lesley Cranna, SNH's area manager, said: "The felling and restoration of this block is just like slotting in an important piece into the peatland jigsaw. It takes us nearer to our goal of re-establishing a healthy peatland ecosystem."

Dr Pete Mayhew, senior conservation manager with the RSPB, said restoring the peatlands of Caithness and Sutherland to their former condition was a huge job. He added: "This sort of partnership between government agencies and private organisations is essential in realising this important work."

Earlier this year, SNH announced that about 28,000 acres of peatland in Caithness and Sutherland had been earmarked as a new nature reserve.

More than 6,000 people a year visit the site and inject almost £200,000 into the economy.