Debate contribution: Inheritance Tax Changes: Impact on Family Farms

Debate contribution by Miss Áine Murphy on 11 February 2025.

MLA

Miss Áine Murphy

Party at the time

Sinn Féin

Date

11 February 2025

Type

Debate contribution

Business

Private Members' Business

Heading

Inheritance Tax Changes: Impact on Family Farms

Assembly identifier

Official Report component 4793502

Read the official Assembly record

Text

I beg to move

Go raibh maith agat, a Phríomh-Leas-Cheann Comhairle. Today, we stand with our resilient farmers, who are enduring an unprecedented financial crisis. Escalating costs and unpredictable market conditions that are largely out of farmers' control have left many struggling to stay afloat. Despite all those overwhelming challenges, our farmers continue to serve our communities, safeguarding food security and sustaining our local economies. At this critical juncture, the British Government's decision to impose the punitive inheritance tax measures jeopardises the future of generational farms and rural sustainability. With business incomes plummeting by 46% per farm, many family farms are at risk of collapsing without immediate interventions. The upcoming spring Budget offers a crucial opportunity to halt the damage that the proposals would inflict. Considering that farmland prices in the North already average around £15,000 per acre, with an anticipated increase, any farm larger than 27 hectares will be affected. Many farm families will be liable for inheritance tax that never existed before. That could force many families to sell land simply to meet the tax burden, leading to fragmented farms and destabilising our rural communities. Our farmers are not only the backbone of our economy but the stewards of our natural environment. The livestock sector alone contributes £1·7 billion annually to our economy and provides 4·6% of total employment. However, those family farms, which have been passed down through generations, now face the real threat of crippling inheritance tax. If the proposals are enacted, they will not only impose an unbearable financial burden but could force land sales, dismantling viable farms and undermining our nation's food security. The British Government must recognise that land values do not equate to farm income. The changes could force families to sell their land just to meet tax demands, eroding the very fabric that is so important to our rural heritage. It is not merely an economic setback but an assault on our rural way of life. Our agriculture sector is unique and cannot be compared to those of other devolved regions. The truth is that 77% of dairy farms and a third of livestock farms will be severely impacted by the changes. That is not a fair tax; it is an attack on working families who are already on the brink of collapse. The British Government may argue that land transfers can reduce tax liabilities, but that is unrealistic for elderly farmers or in the event of an unexpected family death. The ability to pass down a farm intact should not be contingent on complex tax planning; it should be a fundamental right for those who have dedicated their life to food production and rural sustainability. DAERA has warned that the changes could result in forced land sales, disrupting farm succession and threatening the long-term viability of our rural communities. With escalating development values, some farmers may face even higher tax liabilities, further increasing uncertainty. This is not just a crisis for the North; it is an island-wide issue. Agriculture is deeply interconnected throughout Ireland. In the South, however, targeted tax reliefs and succession planning measures provide vital supports to family farms. The South has various mitigations in place that allow land to be passed down without placing severe financial strain on families. Furthermore, the Irish Government have implemented young farmers' supports, restructuring reliefs and income stabilisation schemes to ensure the long-term health of the sector. In contrast, no such safeguards exist in the North, leaving farmers more vulnerable to those harsh tax proposals. Given the cross-border nature of our agri-food industry, which sees over £1 billion in trade annually between North and South, it is critical that farming in the North remains competitive. We must work together to protect the future of our agriculture sector and preserve family farms for generations to come. I acknowledge the efforts of the Finance Minister and the AERA Minister in raising these matters with the Chancellor and the Environment, Food and Rural Affairs Minister. The First Minister and the deputy First Minister also made representations on the issue at the recent British-Irish Council meeting before Christmas. All parties have made it clear that the tax changes represent an existential threat to family farming and the rural way of life in the North. The Ulster Farmers' Union (UFU) has mobilised in opposition to the inheritance tax changes, securing widespread support throughout the North by way of petitions that have been signed by thousands of farmers and rural residents. They have made their voices heard: the tax will devastate family farms and must be stopped. The UFU has also organised tractor runs over the last number of weeks, uniting farmers from across the North to demand immediate action from the British Government. Those grassroots movements represent the deep frustration and fear and anger in our farming communities. I call on the British Government, as they prepare their spring Budget, to listen to the voices of farmers and reverse the proposed inheritance tax changes before irreparable damage is done. We must protect family farms, ensure fairness in taxation and support those who work tirelessly to feed our people. We stand united in solidarity with our farmers and rural communities, and we will continue to fight for policies that protect and sustain them.

875 words. Text as published by the Northern Ireland Assembly.

Assessment

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Assessed 21 October 2026 at 11:58 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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