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'Third of NI farms' hit by inheritance tax change

BBC Andrew Muir has short brown hair and wears thin framed glasses. He is wearing a grey rain coat and a blue and white checked shirt.BBC
Andrew Muir said it was estimated a third of farmers in Northern Ireland would be affected by the inheritance rule change

The budget announcement capping Agricultural Property Relief in inheritance tax at £1m was “bad” for Northern Ireland farmers, according to the Agriculture, Environment and Rural Affairs Minister Andrew Muir

During Minister’s Questions, Muir told the Assembly it was estimated a third of farmers in Northern Ireland would be affected by the change.

But he added that the figure would be much higher in the local dairy sector – up to 75%.

He met the Secretary of State Hilary Benn on Monday to ask for a “rethink” on what he described as “a bad budget for farmers”.

After the meeting Muir said the tax changes, coupled with the announcement that agriculture and fisheries funding will no longer be ringfenced, had caused “real concern” among local farmers.

"I urged him [Benn} to reconsider these policies and engage with the farming community to respond to the concerns being raised," he added.

The secretary of state had previously defended Labour's first Budget in 14 years and its impact on farming.

Chancellor Rachel Reeves announced that, while there would continue to be no inheritance tax due on combined business and agricultural assets worth less than £1m, above that assets would be taxed at 20%, from April 2026 - half the general rate of inheritance tax.