Senior leaders from the Ulster Farmers’ Union (UFU) today (Monday, December 9) “set out” in Westminster how changes to inheritance tax in the UK could “badly damage” agriculture in Northern Ireland.
William Irvine, president of the UFU, led a delegation to Westminster to meet with Steve Reed, Secretary of State for Environment, Food and Rural Affairs, to highlight in person the fears that Northern Ireland farmers have over what has been described as a new “family farm tax”, introduced by the UK Government.
In the autumn budget 2024 the government announced changes to agricultural property relief (APR) and business property relief (BPR) from inheritance tax.
This means that from April 2026, inheritance tax relief for business and for agricultural assets would be capped at £1 million and inheritance tax would charged at 20% above this level.
The government has also confirmed that valuation of an estate would include non-residential agricultural buildings, farm vehicles, farm tools, livestock, chemicals and fertiliser stock
The UFU believes that these changes will “jeopardise farm family livelihoods, Northern Ireland’s food security, and the future of its largest industry”.
UFU
The president of the UFU told Agriland that the delegation highlighted to Steve Reed how important a role agriculture plays in Northern Ireland and how the budget changes would “disproportionately” impact on farm families.
Irvine said that agriculture is worth £6 billion to the Northern Ireland economy.
“That agricultural pound goes into every corner at some point – it is central to the economy.
“But these changes in the budget could badly damage Northern Ireland agriculture, ideally we would like them reversed but there are other options out there that wouldn’t be as harmful, ” he added.
According to the UFU the UK chancellor’s budget “underestimates the essential role our farming community plays in the UK’s food supply, rural economy, and environmental stewardship”.
It has warned that the tax changes introduced in the UK budget could mean that family members who have worked on farms in Northern Ireland for decades “may need to sell to cover the tax bill after a parent’s death”.
