Inheritance tax relief increase 'step in right direction for farm families' - UFU
The Ulster Farmers’ Union (UFU) has said today's (Tuesday, December 23) announcement on inheritance tax "represents a step in the right direction for farming families".
The UK Government has confirmed that the level of the Agricultural and Business Property Reliefs threshold will be increased from £1 million to £2.5 million when it is introduced in April 2026.
The UFU said that this leaves the industry in a "better position than it was yesterday", but stresses the outcome is "still not ideal for everyone".
The change follows "sustained and coordinated lobbying" by the UFU alongside the other UK farming unions, supported by members, industry partners and stakeholders, and is expected to help significantly more Northern Ireland farm businesses than was previously the case.
While further detail and analysis are required to fully understand the implications, the UFU said the announcement demonstrates the "impact of a united voice across the UK farming industry".
'Devastating consequences'
UFU president, William Irvine said: “The UFU has lobbied tirelessly in opposition to the devastating inheritance tax proposals since they were announced in the 2024 autumn budget, and we are very relieved that those efforts were not in vain.
"We’ve led an unwavering campaign in collaboration with the UK farming unions, highlighting the devastating consequences the changes would have on farming families, especially those here in Northern Ireland with our unique farming structure.
“The government’s decision to go ahead with the inheritance tax proposals was a shock to us all, but thankfully the sincerity and courage of our farm families who stood up and shared intimate fears for their farm has finally rung through."
The president confirmed the UFU will continue to lobby for further changes to inheritance tax relief proposals in the longer term.
“We will continue to lobby for the full reversal of family farm tax in the longer term. We have made huge progress, but there is more to be done," he added.
Safeguarded
The Livestock and Meat Commission (LMC) chief executive, Colin Smith has also welcomed the news that the farm family tax threshold has been raised.
“The anguish that this policy has created within the farming community has been widely publicised," Smith said.
"Family farms are part of the fabric of Northern Ireland, making significant contributions to the economy, environment and society.
"It is imperative that they are safeguarded and allowed to prosper for generations to come.
“While it is unfortunate that this tax will still exist, raising the threshold is a positive step which will reduce the burden on farm families.
"This change has come about thanks to the sustained and collective efforts of farmers, farming lobby groups and politicians who relentlessly emphasised the detrimental impact this policy would have on farm businesses and ultimately livelihoods."
'Protest pressure'
Reacting to today's news, Farmers for Action (FFA) has said that "protest pressure has worked".
Sean McAuley of FFA stated: "Farming families across the UK are indebted to all those farming families and farm organisations who worked 24/7 to drive their tractors to London and other venues time after time to protest in the last 12 months."
William Taylor, FFA spokesperson added that while it welcomes the announcement, it "will reserve judgement until the full outworkings of the move are known".
Upper Bann MP Carla Lockhart said the announcement "represents a clear shift from a government that, until now, refused to listen to the very real concerns of farmers".
“Throughout 2025, farmers were left in an impossible position, forced to plan for the future under a £1 million threshold that simply did not reflect the value of land or the reality of modern farming," the DUP’s Westminster agriculture, environment and rural affairs spokesperson said.
“It is no secret that the government was dragged to this point kicking and screaming.
“That said, this announcement is an improvement and it must be welcomed, particularly on the eve of Christmas Eve."
She added that today should "mark the beginning of a new direction".
"As we move into 2026, farmers deserve to feel valued, supported and recognised for the vital role they play in our economy, food security and rural life."
