AIB’s head of corporate banking in Northern Ireland has commented on the decision to include farm land within the remit of inheritance tax.
Seamus McGuckin believes this is part of a bigger picture scenario developing within the UK.
Speaking at a ‘Business Insight’ event, hosted recently by the bank in Belfast, McGuckin pointed to an evolving tax situation in the UK, and the impact this will have where wealth creation is concerned across all sectors of the economy.
He is also mindful of the strong opposition expressed by farming organisations with regard to the impact of inheritance tax on agriculture.
Looking ahead, though, he feels that a lot more detail will come into the public domain, specifically where the impact of inheritance tax on farm land is concerned.
This could possibly include a decision by the Chancellor of the Exchequer to increase the value thresholds at which inheritance tax kicks in.
According to McGuckin, AIB fully supports Northern Ireland’s agri food sectors. Where production agriculture is concerned, he specifically highlighted the significance of the dairy and poultry industries.
He explained: “Food is a non-negotiable issue for the bank. We have a great heritage here in Northern Ireland. We need to protect this and allow it to grow.”
“I think there is more that we can do as a bank to work with the food processing sector. In tandem with this is the need to work with primary producers.”
The AIB representative went on to confirm that the bank has plenty of exposure to production agriculture in Northern Ireland.
McGuckin continued: “We focus on a number of sub-sectors including dairy and poultry. It’s no secret that agriculture as a whole goes through periods of volatility.
“The industry also has challenges regarding the sustainability journey and emissions. But everyone recognises there will be a gradual transition, where these matters are concerned.
“Our role will be to allow farming businesses to invest as they address these challenges,” he added.
With regard to the general prospects for agriculture in Northern Ireland during the year ahead, McGuckin confirmed that the weather will always have a strong impact on most farm businesses.
He said: “Fluctuating commodity prices will always have an impact on production agriculture. AIB is always monitoring these markets.”
AIB’s chief economist, John Fahey, also addressed the business event. He indicated that global gross domestic product (GDP) growth is projected to hit an average of 3.3% in 2025.
Where China is concerned, the figure may well come in at 4.5% with the UK’s projected annual GDP increase amounting to 1.9%.
Fahey specifically highlighted the Brexit deal which provides Northern Ireland with free access to the European Single Market.
He said: “The full benefit of this facility has yet to be secured as a result of capacity constraints.”
