Debate contribution: Inheritance Tax Changes: Impact on Family Farms

Debate contribution by Mr Patsy McGlone on 11 February 2025.

MLA

Mr Patsy McGlone

Party at the time

Social Democratic and Labour Party

Date

11 February 2025

Type

Debate contribution

Business

Private Members' Business

Heading

Inheritance Tax Changes: Impact on Family Farms

Assembly identifier

Official Report component 4793700

Read the official Assembly record

Text

Gabhaim buíochas fosta le mo chara Déaglán agus a chomhChomhaltaí as ucht an rún seo a chur osár gcomhair.

People have asked what the scale of this is. Those who are not off the land, whose families are not engaged in farming and whose families have not held in ownership the land, which, we know, is a very important issue in Ireland alone, and those who are not attached to the land or are not of the land really do not get what this means. It is emotional attachment. It is a legacy, a tradition, a way of life and a way of working that has been handed down generation after generation and kept in the family. When we speak about the issue, it is not just about basic accountancy; it is about a range of emotions and a host of issues about attachment to the land and working it to sustain families and others.

Absolutely. I thank the Member for raising that point. Some do it because of their attachment and the emotional value of that land to the family. There is another element to that, as no one — it is usually the father or grandfather — wants to leave a legacy of debt to that young person.

Whether or not that debt can be paid off the inheritance tax over 10 years interest free, it is still a debt. Earlier, John Blair mentioned the environment. That debt means that the young person will not be able to invest in new farming methods. They will not be able to invest in tractors, machinery or whatever it is. They will not be able to invest in maintenance of the ground. Therefore, to inherit that debt is certainly not the legacy or bequeathal that any father wants to leave to his family. There is that element to it as well.

A report estimates that at least 6,000 Northern Ireland farming taxpayers and potentially up to 420 cases per annum could be affected by the change. If the Labour Government want to go after those billionaires who are "land stocking", we will call it, just to avoid tax, they should go after them. Surely, among the great and the good and the brilliant tax advisers that there are, they can find a methodology with which to go after someone who has bought land just to avoid tax and is not actively farming it. Do that instead of going after the small man, the small farmer, or others who are just trying to provide food for their families and to provide food for 10 million people. That is what Northern Ireland does in various aspects of farming and agriculture. It has been estimated — again, these are estimates — that Northern Ireland could account for over 40% of the inheritance tax intake as a result of the change to inheritance tax for farming families. That is incredible. That just shows that the Government are directing it at the wrong target, if their aim was to target it. They should really reflect on that. I look forward to hearing from the Minister. I am sure that he has been doing his job and making the case to the Government at Westminster. It would be helpful to shed a wee bit of light on that detail. Minister, you will forgive me: I watch most of your stuff and make sure that I keep an eye on you most of the time, but I cannot do it all the time. It would be helpful if you shed some light on the case that was made to Westminster. It is a big issue that has caused a lot of angst among farming families. It has caused a lot of angst among the young, the old and the generations in a household. That is not where we want to be. If we want to invest in the future, we need the people who own the land to still work the land and provide food for our people and to give their young people and families a future to look forward to. Go raibh míle maith agat.

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

Assessment

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