UFU renew call for complete reversal of tax changes

The Ulster Farmers’ Union (UFU) has renewed its call for the UK government to fully reverse family farm tax proposals, despite recent changes to Agricultural Property Relief (APR) for inheritance tax. The UFU argues that while the new proposals, which set a 100% threshold at £2.5 million transferable between partners with a 50% relief thereafter, are an improvement over the original plans, they still pose significant challenges for family farms.

UFU President William Irvine emphasized that the original proposals, which had a £1 million threshold, would have been catastrophic for agriculture. He stated that these proposals were based on a lack of understanding or respect for how agriculture operates in Northern Ireland and across the UK. However, Irvine acknowledged that sustained lobbying by the UFU and other UK farming unions, supported by members, industry partners, and stakeholders, led to the changes in the inheritance tax proposals.

Despite these changes, Irvine reiterated the UFU's commitment to continue lobbying for further adjustments to the Inheritance and Death Duties (IHT) proposals. He highlighted both the immediate practical challenges posed by the current policy and the need for long-term political commitment to address these issues. Irvine noted that while the UFU is in a better position today than it was a year ago, the work is far from over.

The UFU is pushing the UK government to remove the harmful family farm tax entirely and is continuing to lobby all political parties in Westminster to include this policy change in their next manifestos. Irvine referred to the initial inheritance tax proposals as a period of "14 months of torture" for farm families in Northern Ireland and the rest of the UK.

In a recent conversation with Agriland, Irvine discussed the impact of Chancellor Rachel Reeves' October 2024 Budget, which introduced the inheritance tax. He described the subsequent 14 months as a difficult time for farm families, but acknowledged that the changes brought about by the UFU's efforts have improved the situation.

The UFU's renewed call for a complete reversal of the tax changes underscores the ongoing challenges faced by family farms in the UK. The organization's persistent lobbying efforts highlight the need for political parties to address these issues and prioritize the needs of the agricultural sector in their manifestos. As the UFU works towards achieving its goals, it remains committed to advocating for a fair and sustainable future for family farms in Northern Ireland and beyond.