Poltics
Farmers had been dealt a “doubtlessly killer blow” in the Budget, a DUP MP has claimed.
Chancellor Rachel Reeves launched a reform on inheritance taxes utilized to farms for the duration of Wednesday’s Budget announcement.
She said from April 2026, the first £1 million of combined industry and agricultural sources will continue to intention no inheritance tax.
But for sources over £1 million, inheritance tax will express with 50% relief, at an efficient price of 20%.
Rachel Reeves said from April 2026, the first £1 million of combined business and agricultural assets will continue to attract no inheritance tax (PA)
PA Wire
DUP MP Carla Lockhart said UK farming unions had warned Government of the impact that weakening Agricultural Property Relief would have.
She said family farms could be broken up if they are forced to sell land to pay the cost of passing the farm to the next generation.
“The threshold imposed by the Government will also be surpassed by many farms, leaving them facing a potentially significant tax bill,” she said.
“This will be the case right across the United Kingdom and it is inevitable that it will face very significant opposition within Parliament.
“Should the Government decide to continue with their policy, then there will also be a strong focus on why they have decided to set the threshold at a level that will impact many more farms than the number claimed by the Chancellor.”
Lord Elliott said the Budget will have a ‘devastating impact on Northern Ireland farmers’ (PA)
PA Wire
Ulster Unionist peer Lord Elliott has said the Budget will have a “devastating impact on Northern Ireland farmers”.
“The significant changes to Agricultural Property Relief in the Budget is likely to force many family farms out of business that have been within the family structure for generations,” he said.
“This decision coupled with the resolution that the Northern Ireland farm support budget will no longer be ring-fenced, but instead be part of the Block Grant that DAERA will have to bid for is likely to cause farmers to go out of business and lead to significant increases in the cost of food in shops and supermarkets.
“The result will not only be bad for the farming community but also for food consumers and the public in general.”
Many farmers will be forced to sell ground to clear this new tax bill
Allister Kyle
TUV East Londonderry representative Allister Kyle also criticised the move.
“£1 million sounds like a lot of money, and it is, but with the Northern Ireland average farm size being 41 hectares (101 acres), if ground was valued at £12,000 per acre and a farmyard and house valued at £400,000, this would leave a tax bill of around £100,000, on top of the livestock and equipment values,” he said.
“Many farmers will be forced to sell ground to clear this new tax bill which will then also trigger possible capital gains tax to be paid on the level that ground may have increased in value since the time it was bought.
“The agricultural sector isn’t generally a cash rich business, most profits are usually reinvested in ground, yards or equipment to have a lasting legacy for future generations to keep on stewarding the land, caring for livestock and keeping us fed.”
