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Farmers in Northern Ireland have expressed relief following the government’s decision to revise its inheritance tax proposals. The Ulster Farmers’ Union (UFU) president, William Irvine, highlighted that the farming community “never gave up hope” that the changes would come. The government recently announced an increase in the inheritance tax threshold for agricultural assets from £1 million to £2.5 million, easing the financial pressures on family farms.
Last year’s Budget had introduced plans to implement a 20% tax on inherited agricultural assets exceeding £1 million, starting in April 2026, ending a tax relief policy that had been in place since the 1980s. According to Irvine, the latest announcement “eases pressure on family farms,” though he emphasized that this is “not where we want to see the final position to be.” He noted the importance of recognizing the high value of farming equipment, livestock, and land.
Irvine told BBC News NI that the revised threshold places farm families “in a better place today than they were this time yesterday.” While there has not been enough time to fully assess the financial impact, he estimated that “between 80 and 90% of Northern Ireland farms should be significantly, if not totally, covered” by the new threshold. He described this adjustment as a “step in the right direction” that will inspire confidence among farmers to invest in their futures and encourage younger generations to join the industry. However, he also pointed out that although £5 million may sound substantial, many farms of that size still struggle to extract a living wage, illustrating the common predicament of being “asset rich and cash poor.”
Agriculture Minister Andrew Muir welcomed the government’s announcement on Radio Ulster’s Evening Extra, calling it “significant and important” while noting it was “long overdue.” He praised the UFU for their “respectful, sustained and successful engagement with the UK government.” Muir acknowledged the anxiety caused within Northern Ireland’s farming community by the initial proposals and said his department found the original plan would have a “disproportionate and detrimental impact” on local family farms. He admitted that the change would not benefit everyone but called it a “welcome achievement.”
Muir also stressed the need for the government to reflect on the process, criticizing the previous “lack of empathy” and “lack of listening,” but expressed relief that an improvement had finally been made. He said, “Let’s learn lessons and ensure this never occurs again,” urging the government to admit its mistake. He concluded by saying, “Politics sometimes is about saying look we got this wrong and we are going to fix it,” adding that this change “allows us to protect the family farms.”
William Irvine highlighted the emotional toll the last fourteen months have taken on farm families, attributing much of it to the government’s failure to engage properly with the agricultural sector early on. He hopes for a “sensible discussion” about how to manage inheritance tax in the long term. Meanwhile, Stormont’s Agriculture, Environment and Rural Affairs Committee chair, Robbie Butler, welcomed the government’s retreat but called for the tax to be “removed totally,” emphasizing the policy’s previously deep impact on the mental health of farm families across Northern Ireland.
Colin Smith, chief executive of The Livestock and Meat Commission, also praised the announcement as a “positive step which will reduce the burden on farm families.” He underlined the widespread distress the earlier policy had caused, stating, “Family farms are the part of the fabric of NI, making significant contributions to the economy, environment and society. It is imperative that they are safeguarded and allowed to prosper for generations to come.
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