Northern Ireland Farmers’ Union to Address Inheritance Tax Issues in Westminster

The impact of inheritance tax modifications on farmers in Northern Ireland is scheduled to be brought to the attention of the UK farming minister this Monday. Delegates from the Ulster Farmers’ Union (UFU) are set to convene with Steve Reed, the head of the Department of Environment, Food and Rural Affairs (Defra). The president of the UFU informed Stormont’s Agriculture, Environment and Rural Affairs committee that he, along with a Valuers’ Association representative, would additionally present testimony to the Northern Ireland Select Committee on Tuesday. William Irvine stated, “This problem came out of London and the answer to it lies within London and the Westminster bubble.” He added, “So that’s where we’re focusing our efforts at this moment.” “It’s looking like it’s going to be a long campaign and as we sit here, we’re looking at what further actions we’ll be taking through into the new year,” he concluded. The agricultural sector was caught off guard by the October budget’s announcement of a £1m limit on agricultural property relief. Over 6,000 individuals from across Northern Ireland attended a protest rally held at Balmoral Park, situated near Lisburn. Although the government has asserted that the majority of farms will incur no costs due to these changes, this claim has been challenged by various farming organizations. Subsequently, a national rally took place in London, alongside a protest lobby in Westminster. William Irvine informed the Stormont committee that the £1m threshold applies solely to comparatively small holdings. He stated, “It doesn’t cover that main raft of farmers that actually fill the shelves for this country. So they could raise the threshold to a more meaningful level.” “One other suggestion has been that if a farm moves down a generation and is not sold and continues to be farmed, no tax is due. It only becomes liable for tax if at some point the farm is actually sold.” He concluded, “That would be a workable solution too.” Mr. Irvine mentioned that the four unions across the UK were seeking “meaningful” discussions aimed at safeguarding family farms and ensuring food security. Alexander Kinnear, the UFU’s parliamentary officer, conveyed to the committee his conviction that the government’s arguments were predicated on English farming data, and that statistics concerning affected farms in Northern Ireland were critically required. “They weren’t taking into account the unique position Northern Ireland is in in terms of most likely sole ownership of land and farms but also the price per acre, which is much higher than the rest of the United Kingdom,” Mr. Kinnear stated. Mr. Kinnear further explained, “So that’s why the figures are urgently needed, because UK Treasury are looking at this in sort of a GB sense, they’re not taking us into account.” A Treasury spokesperson, in a formal statement, indicated that the policy’s foundation rested on claims data from HMRC spanning the entire UK. The spokesperson affirmed a “steadfast” dedication to farmers and confirmed that £5bn had been allocated to the farming budget over a two-year period. He further added: “We have been clear since this change was announced that around 500 claims of Agricultural and Business Property Relief each year will be impacted – this is based off actual claims data – and even when inheritance tax does kick in, it is effectively at half the rate paid by others.” “It is not possible to accurately infer inheritance tax liability from farm net worth figures as there are different circumstances affecting each farm, such as who owns it, the nature of ownership, how many people own it and how affairs are planned,” the spokesperson concluded. William Irvine reported that a Treasury representative had indicated during a meeting that, based on their data, most farms were under the ownership of three individuals. “In Northern Ireland, the main collateral of any farm tends to be owned by one person, so that’s why we’re hit so hard here,” he explained. The UFU’s presentation to the committee additionally addressed other ongoing matters, such as the chief veterinary officer’s assessment of bovine TB, suggested modifications to sheep testing for Maedi Visna disease, and the consequences of persistent planning limitations stemming from ammonia. It has come to light that Andrew Muir, Northern Ireland’s Agriculture Minister, has corresponded with the UFU regarding ammonia guidelines in planning. A segment of the letter was read aloud to the committee, stating that “the purpose of the next meeting is to focus on solutions which will work better for the environment and farmers in relation to ammonia emissions, specifically in respect of replacement farm buildings and responsible sustainable regulated development”. William Irvine described this as “a chink of light” but cautioned that “nothing was a given”.