Farmers’ Union Foresees Government “Wake-Up Call” Over Inheritance Tax Changes

Northern Ireland’s primary farmers’ organization has stated that the government is poised for “a wake-up call” regarding proposed alterations to inheritance tax regulations, as thousands of individuals gather in London for a demonstration. The Ulster Farmers Union (UFU) indicated that the event is intended to “make a major statement”. This nationwide rally follows a previous gathering on Monday evening, where thousands of agricultural workers from Northern Ireland assembled at the Eikon Exhibition Centre in Lisburn to voice opposition to the proposed modifications concerning farms. Agricultural producers contend that the £1m limit on agricultural property relief (APR), introduced in the previous month’s Budget, will discourage future generations from assuming control of family businesses. While the government has stated that this alteration will impact only the top 500 wealthiest estates annually, agricultural unions assert that it will extend to thousands of farms. William Irvine, president of the UFU, who is among the Northern Irish farmers journeying to London for the protest, stated that participants “see this as the start of a campaign”. Speaking on the Good Morning Ulster programme, he remarked, “Where it goes, I can’t predict, but we have a strong mandate from Monday night to follow this through.” He also mentioned that the attendance of all four major UK farming unions at the gathering would demonstrate that “we have power as an industry”. Approximately 15,000 farmers have endorsed the UFU’s petition, which seeks to reverse the family farm tax and will be submitted to the secretary of state. Mr Irvine commented, “It will be a wake-up call for the government.” He further indicated that in addition to a scheduled meeting with Hillary Benn, “we our demanding more meetings with government to talk about this and get some sense on the table here.” Since 1984, agricultural property relief has provided an exemption from inheritance tax for land utilized for cultivation or livestock rearing, alongside farm structures, cottages, and residences. However, commencing April 2026, this exemption will be limited to the initial £1m of an estate’s value, with any amount exceeding that threshold subject to a 20% tax – which is half the standard rate. Findings from the Department of Agriculture, Environment and Rural Affairs (Daera) indicate that one-third of Northern Ireland’s farmers could be impacted, with the dairy industry facing a notably severe effect. Richard Beattie, who serves as president of the Young Farmers Club of Ulster, informed Good Morning Ulster that this updated policy might enable outside businesses to acquire agricultural land. “We’ve all been witness to inflation, and buildings, land and machinery have all been inflated in the last few years, so that £1m tax benchmark is significantly lower. “This may be seen to help farmers, but the farmer has the least cash to pay the inheritance tax bill, and in some cases other larger businesses might have more cash assets to buy the land.”Ultimately the farmer will be worse off in this whole situation.” He added: “Income in agriculture is a very volatile thing and farms are very money-hungry and families with a next generation tend to invest for that next generation.”The change in this inheritance tax will reduce investment on farms.”