UFU renew call for complete reversal of tax changes

The Ulster Farmers’ Union (UFU) has recently renewed its call for the UK government to completely reverse the family farm tax proposals that were introduced in the 2024 Autumn Budget. While the government has made some changes to the Agricultural Property Relief (APR) rules, the UFU believes that these modifications are insufficient and that the tax changes must be fully overturned.

Under the revised APR rules, the 100% threshold for transferring agricultural property between partners has been increased to £2.5 million, with a 50% relief available thereafter. This change was a result of sustained lobbying by the UFU and other UK farming unions, backed by members, industry partners, and stakeholders. UFU President William Irvine acknowledged this success, stating that it demonstrated the strength of a united voice across the UK farming industry.

However, Irvine emphasized that the UFU's campaign is far from over. He reiterated the union's commitment to continue lobbying for further changes to the Inheritance Tax (IHT) proposals, both in addressing the immediate practical challenges posed by the current policy and in working with political parties for longer-term reforms. Irvine highlighted that while the situation has improved since the initial announcement, the work to completely remove the harmful family farm tax is still ongoing.

The UFU is urging the UK government to reconsider its approach to farm taxation, arguing that the original proposals of a £1 million threshold would have been catastrophic for agriculture. Irvine claimed that these proposals were based on a lack of understanding or respect for how agriculture operates in Northern Ireland and across the UK. The UFU is now focusing on persuading all political parties in Westminster to include the complete reversal of the policy in their next manifestos.

In a recent conversation with Agriland, Irvine described the inheritance tax introduced by Chancellor Rachel Reeves as a period of "14 months of torture" for farm families in Northern Ireland and the rest of the UK. Despite the amendments made to the tax, Irvine believes that the fundamental issues remain unresolved, and the UFU will continue its efforts to secure a complete reversal of the tax changes.

The UFU's renewed call for a complete reversal of the tax changes underscores the ongoing challenges faced by UK farmers and the need for a more supportive government policy. As the union works to build political support for its cause, the UFU remains committed to advocating for a fair and sustainable future for family farms in Northern Ireland and beyond.