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Farmers in Northern Ireland have greeted recent government proposals to increase the inheritance tax threshold on agricultural land with cautious optimism. Libby Clarke, a farmer from Magheralin in County Down who also sells farmland, described the changes as “Santa has come early for farmers,” highlighting relief over the government’s decision to raise the inheritance tax threshold from £1 million to £2.5 million. However, Ms Clarke stressed that farmers should remain vigilant and “continue to lobby” for further adjustments, pointing out that farming businesses are still vulnerable under the current plans.
The farming community’s concerns had been mounting since the initial proposal, which many saw as unfairly targeting family farms as an easy source of government revenue. William Irvine, President of the Ulster Farmers Union, acknowledged that while the announcement “eases pressure on family farms,” it does not represent the final solution the sector desires. Agriculture Minister Andrew Muir also expressed support for the changes, calling them “significant and important” but “long overdue,” and noting the anxiety that had spread among farmers since the inheritance tax plans were first introduced.
Despite the higher threshold, the financial strain remains an issue for many families. Libby Clarke emphasized that land values, which can reach up to £35,000 an acre, mean that farms of moderate size are still at risk of surpassing the £2.5 million mark once machinery, livestock, and buildings are included in asset valuations. She condemned the idea of taxing what she considers a working farm business, labeling the approach “totally outrageous” and calling for the tax to be completely abandoned for agricultural holdings.
Other voices within the farming community echoed these sentiments, including Roberta Armstrong, a retired agricultural bank manager and farm owner from Kilrea, who described the government’s partial reversal as a welcome and unexpected relief for her family. Having lost her husband in 2021, Ms Armstrong had been deeply concerned about the impact of the proposed inheritance tax changes on their dairy farm. The new plans lifted a significant burden from her family, as they now fall within a £5 million allowance, removing a major source of worry during an already difficult period. Meanwhile, political representatives ranged from cautious praise to calls for continued reform, with Democratic Unionist Party MP Carla Lockhart describing the news as “welcome at Christmas” but acknowledging more work is needed, and Sinn Féin MP Cathal Mallaghan likening the policy shift to “a visit from the ghost of Christmas future,” underscoring the urgent relief felt by farmers facing multiple pressures
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