Inheritance tax change affects ‘one third’ of NI farms

The agriculture minister says a change to inheritance tax for farms, which has left farmers across the UK worried for their future, will have a “significant impact” in Northern Ireland.
Under plans announced in the Budget, inheritance tax will be charged at 20% on farms worth more than £1m, although the Chancellor has said that in some cases the threshold could in practice be about £3m.
The move has caused a considerable backlash from farming and countryside communities, and led to a dispute over just how many farms and farm businesses would be affected.
The National Farmers Union is urging the Government to reverse the move.
Speaking in the Assembly on Monday afternoon, Agriculture Minister Andrew Muir said the news is causing “real concern” in Northern Ireland.
He said: “It’s impossible to precisely determine the number of farms affected but around one third would be a reasonably estimate.
“And much higher within the diary sector, at potentially 75%.
“It is going to have a significant impact in Northern Ireland and I’ll be meeting the secretary of state today and I’ll be asking for a rethink in relation to this.”
Chancellor Rachel Reeves told the BBC’s Sunday With Laura Kuenssberg: “Only a very small number of agricultural properties will be affected, but last year the benefits of agricultural property relief, 40% of the benefit was felt by 7% of the wealthiest land owners.
“I don’t think it is affordable to carry on with a relief like that when our public finances are under so much pressure.”
But the NFU says many family farms have a high notional asset value, but very low income and liquidity, which means that the vast majority of owners would be unable to meet the inheritance tax charges, without selling assets.
However, the Government continued to insist the vast majority of farmers will still be able to “pass the family farm down to their children”, following the meeting.
A Government spokesperson said: “Ministers made clear that the vast majority of those claiming relief will not be affected by these changes. They will be able to pass the family farm down to their children just as previous generations have always done.
“This is a fair and balanced approach that protects the family farm while also fixing the public services that we all rely on. We remain committed to working with the NFU and listening to farmers.”
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