Ministers urged to reveal impact of inheritance tax on Northern Irish farms

Ministers have been urged to publish a Northern Ireland specific impact assessment of the Government’s changes to inheritance tax.

Shadow Northern Ireland secretary Alex Burghart said farms in the region are “different to the rest of the UK”, leaving them “more exposed” to the changes.

Labour’s changes to agricultural property relief will see farmers pay inheritance tax of 20% on properties and land worth more than £1 million, with a higher threshold of £3 million for couples passing on their farms.

Government estimates claim that three-quarters of farmers will not be impacted, but the National Farmers Union (NFU) has said plans to bring together the agricultural tax break with another for business property will draw farmers more into paying it.

Mr Burghart called on the Government to publish a detailed breakdown of the impact on farms in Northern Ireland.

He told MPs: “The make-up of farming in Northern Ireland is slightly different to the rest of the UK. There is a greater density of farms in sole ownership and agricultural land is worth more, and this means that farms in Northern Ireland are more exposed to Labour’s family farms tax.

“The farmers I met in Northern Ireland are deeply concerned about this and nationally there is a disagreement about the figures.

“On one side we have the Government that says not many farms will be affected. On the other side, we have the experts who say that very many farms will be affected. Transparency will help everyone.

“So, will the Secretary of State commit to asking the Chancellor to publish detailed Treasury working of the Budget’s impact on farms in Northern Ireland so that independent experts can check their figures?”

Northern Ireland Secretary Hilary Benn replied: “To understand the impact, you have to look at the ownership structure of each individual farm and I am not entirely sure that he is advocating that the Government should do that for all of the farms right across the country.

“It will be for farmers themselves to look at the arrangements that will apply from 2026 and to take advice on how they can ensure that they are able to continue to pass their family farms to their children and their grandchildren.”

DUP MP Carla Lockhart said she had attended a rally hosted by the Ulster Farmers Union to oppose the tax.

The MP for Upper Bann said: “It was attended by 6,000 farmers, with every political party in Northern Ireland standing together in opposition to the change.

“When will the Government acknowledge that their figures are not reflective of the average farm and that this death tax will result in the break-up of family farms as we know them, in the selling of land to pay the tax and the purchasing of devalued land by big businesses who are not interested in using it for feeding our nation.”

Mr Benn said: “I understand that those changes are unwelcome and difficult but, given the fiscal position, the Government is having to take difficult decisions.”

Liberal Democrat MP for Chichester Jess Brown-Fuller said that income from farming in Northern Ireland had fallen “amid volatile markets soaring costs and declining output”, as she also called for a regional impact assessment.