Farmers Demonstrate Against Planned Inheritance Tax Adjustments

Thousands of farmers convened to protest against forthcoming revisions to inheritance tax regulations. The gathering, held at the Eikon Exhibition Centre in Lisburn and organized by the Ulster Farmers’ Union, also saw attendance from political figures and agricultural sector leaders. Farmers contend that the £1 million limit on agricultural property relief (APR), announced in the Budget last month, will discourage the succeeding generation from taking over family farming operations. This rally was convened in advance of national demonstrations scheduled for Tuesday in London. Earlier, a cross-party letter, signed by all of Northern Ireland’s Members of Parliament, was dispatched to Chancellor Rachel Reeves. The letter urged her to reconsider her plans to modify APR, which serves to reduce the tax amount payable when farmland is transferred to the next generation. Paul Crawford, from Islandmagee in County Antrim, brought his nine-month-old son, Rowan, to Monday’s rally. He informed BBC News NI, “Already he will sit there and chat to the calves and the lambs all day long.” Crawford added, “But if these sort of rules come in there might not be the opportunity for him to do that and carry that on.” Catherine McAdoo, a young beef and dairy farmer, stated: “At the end of the day it’s going to be the next generation that is going to deal with the consequences if it’s not sorted.” Before the event, farmer Martin Cunningham, who is among those anticipated to be affected, spoke to BBC News NI. Martin had always harbored aspirations of taking over his family’s farm in the Belfast Hills and expanding upon the foundation laid by his great-grandfather. However, he asserts that the Budget announcement to discontinue APR on inheritance tax has put an end to that dream. “If this farm’s handed down to me, I’ll have an incredible tax bill to pay,” Mr Cunningham said. He continued, “I’ll have to sell land in order to pay that, I’m going to have to sell land over the value of £200,000.” He concluded, “It’s not simple to sell land up here, it’s either all or nothing.” Since 1984, APR has provided an exemption from inheritance tax for land utilized for crops or raising animals, as well as farm buildings, cottages, and houses. From April 2026, this relief will apply only to the initial £1 million of an estate’s value, with any amount exceeding that threshold taxed at 20% – half the standard rate. Research conducted by the Department of Agriculture, Environment and Rural Affairs indicates that one-third of farmers in Northern Ireland will be impacted, with the dairy sector facing a particularly severe effect. The average farm in Northern Ireland spans approximately 100 acres, and land values have appreciated in recent years. For Mr Cunningham, the value of his family’s nearly 200 acres alone places the farm above the £1 million tax-free threshold. This calculation does not include any equipment, farm buildings, or the farmhouse. Speaking to BBC Radio Foyle’s North West Today programme on Monday, farmer Ian Buchannan expressed his belief that the changes to inheritance tax will be “the final straw that has broken the camel’s back” for many farmers. Mr Buchannan, who operates a farm outside Dungiven, County Londonderry, conveyed that he, like numerous other farmers, is deeply concerned about the implications for the future of farming in Northern Ireland. He elaborated, “The return we get on an investment on a farm, say it is worth one million or two million pounds, whatever the farm value is, it is well known that the return on that is 0.5% net profit per year – which is peanuts.” He further stated, “60%-80% of all farm income over the last 10 years in Northern Ireland comes from subsidies.” Mr Buchannan remarked, “Farms are like parcels that are passed down; you don’t open it but you just pass it on – farms are not generally sold unless a [family] line dies out.” He concluded, “This is incredibly tough for a lot of farmers and I do feel there is a lot of mental stress within the community.” Farmers from across the UK are preparing for a demonstration in London on Tuesday, urging Chancellor Rachel Reeves to reverse the changes. However, the Treasury has rejected proposals aimed at mitigating the impact. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content of external sites. Information regarding our approach to external linking is available.