Upper Bann MP, Carla Lockhart, has penned a cross-party letter to Chancellor Rachel Reeves, prompting her to reconsider proposed plans to axe historic Agricultural Property Relief (APR) on inheritance tax.

Ms. Lockhart’s letter, which was circulated to the treasury, Prime Minister Keir Starmer and DEFRA Minister Daniel Zeichner, has been countersigned by all sitting NI MP’s and Members of the House of Lords.

The letter received full support from DUP colleagues, Gavin Robinson MP; Sammy Wilson MP; Gregory Campbell CBE MP; Jim Shannon MP; Lord Dodds; Lord Morrow; Lord Hay; Lord Brown; Lord McCrea and Lord Weir.

It has also attracted positive cross-party support from Jim Allister MP (TUV); Robin Swann MP (UUP); Alex Easton MP (Independent Unionist); Claire Hanna MP (SDLP); Colum Eastwood MP (SDLP); Sorcha Eastwood MP (Alliance MP). 

MP Lockhart said: “I wanted to send out a strong united message on this issue – this letter clearly demonstrates that we are collectively united in our concerns regarding the government’s pending plans to abolish current APR.”

The letter addresses their various points of criticism directed towards the changes to inheritance tax, which up until this point, have not been levied on farm land, but from April 2026, farmland worth more than £1 million will be subject to a 20% tax rate.

The letter depicts the devastating impact that the forecasted tax change is expected to have on NI’s farming community, which it describes as a “cornerstone” of economic, social and cultural life in the region.

“The removal of Agricultural Property Relief will place a substantial and unfair financial burden on family farms, jeopardise their ability to pass on these assets to future generations and risk the sustainability of family-owned farming operations.

“Unlike other types of businesses, farming is asset-rich but often cash-poor, making inheritance tax liabilities particularly difficult to meet without significant restructuring, borrowing, or asset disposal, potentially leading to fragmentation or loss of productive land.

“We recognise and support the need for a fair tax system, but we strongly believe that removing APR will inadvertently threaten the generational transfer of farms, disrupt rural communities and undermine the long-term security of our agricultural sector,” the MP said.

To illustrate the extent of its implications, the letter referenced the DAERA estimation, which indicated that at least a third of all farms and 75% of dairy farmers in NI will be affected by APR’s removal.

MP Lockhart believes the eradication of APR will pose “acute financial challenges” to the region’s small-to-medium sized farms and will exacerbate existing structural issues, including “rising operational costs, challenges from changing trade conditions and the uncertainties associated with climate policies”.

Lockhart also said that APR changes will impinge on food security in the UK, considering the regions 26,000 farms are currently responsible for feeding over 10 million people.

The MP concluded the letter by urging the government to perform a u-turn and preserve the APR in its current form to secure the viability of the sector for future generations.

APR INHERITANCE TAX NORTHERN IRELAND