Debate contribution: Inheritance Tax Changes: Impact on Family Farms

Debate contribution by Miss Jemma Dolan on 11 February 2025.

MLA

Miss Jemma Dolan

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 4793718

Read the official Assembly record

Text

Before I begin my remarks, I declare an interest as I was brought up on a family farm. I stand firm in support of our farming communities, which are under threat from an unjust tax that jeopardises not only their future but the very foundation of our rural economy in Fermanagh and South Tyrone. The British Government's decision to impose inheritance tax on farms that are valued at over £1 million is a direct assault on family farming. Its consequences will be devastating, particularly here in the North, where agricultural land prices are amongst the highest. On 18 November 2024, the Agriculture Minister and Finance Minister, along with the First Minister and deputy First Minister, wrote to the Chancellor urging a rethink of that flawed policy and the preservation of agricultural relief. The message was clear: taxes must be fair and proportional. That policy will force many farm families to sell land or shut down their businesses just to pay an unfair tax bill. Family farms are not just businesses. They represent a lifetime of hard work and heritage and are crucial for our food security. We cannot let them be taxed out of existence. Sinn Féin has been vocal in opposing those changes. Alongside the Ulster Farmers' Union, we have shown our commitment to protecting farm families. Despite the British Government's refusal to listen, we will continue to fight for fairness on every front, including at the British-Irish Council. Farming is the backbone of the rural economy, especially in Fermanagh and South Tyrone. It provides jobs, sustains communities and ensures food security. The tax puts all that at risk, threatening to drive even more families off the land. The British Government's autumn Budget 2024 proposes capping agricultural property relief and business property relief at £1 million from April 2026. With the North's high land values, farms that are larger than 27 hectares could face a 20% tax on the portion of land that exceeds the cap. That could affect 36% of farms, including many dairy and livestock operations, and force land sales that would destabilise the industry. DAERA has warned that the changes will disrupt farm continuity, particularly for elderly farmers and those who face sudden estate transitions. The issue does not just affect the North; it is an all-island issue. Agriculture is interconnected across both parts of Ireland. We must ensure that farmers in the North are not left at a disadvantage compared with those in the South, where targeted reliefs help to protect family farms and secure the future of agriculture. Despite rising land prices, more land was advertised for sale in 2024, up 21% from the previous year. Young farmers are being priced out, and tighter planning regulations will only increase costs for those who are looking to expand or modernise their operations. We cannot let tax pressures and inflated land prices block the future of farming. As we approach the 2025 spring statement, I urge the British Government to reconsider their inheritance tax proposals. This is a critical opportunity to protect our farmers and the rural economy. I call on all representatives here to reject that unfair tax and stand with our farmers to safeguard the future of family farms in Fermanagh and South Tyrone and across the North. We must act now before it is too late.

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

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Assessed 21 October 2026 at 12:00 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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