The President of Ulster Farmers’ Union (UFU) has welcomed the government’s decision to “re-think” inheritance tax.
Today (December 23) a decision was made to overturn last year’s Budget announcement – where farmers would be charged a 20% tax on inherited agricultural assets worth more than £1 million – and replace it with a new threshold of £2.5 million for individuals and up to £5 million for married couples.
Since the initial Budget announcement, hundreds of thousands of farmers from across the country gathered throughout the year to stage repeated protests against the taxation, which many argued would deter future generations from following in their family’s footsteps, cause irreparable damage to the industry and had the potential to stir serious “mental health issues” among agricultural families.
There was also a sustained and coordinated lobbying by the UFU alongside the other UK farming unions, supported by members, industry partners and stakeholders.
The change 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 says the announcement demonstrates the impact of a united voice across the UK farming industry.
County Armagh dairy farmer William Irvine – who was voted in as president of UFU in May 2024 – called the move a “step in the right direction”, leaving the industry in a better position than it was yesterday, but stresses the outcome is still not ideal for everyone.
Speaking following the news, Mr Irvine, said, “The UFU have 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 a unwavering campaign in collaboration with the UK farming unions, highlighting the devastating consequences the IHT changes would have on farming families, especially those here in Northern Ireland with our unique farming structure.”
The UFU continuously raised with government how NI will be severely and disproportionately affected by IHT as a result of high land values, an older demographic of farmers and a greater prevalence of sole-owner, livestock-based farms.
“The government’s decision to go ahead with the IHT 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 strength and resilience of our farming community has brought this change and the UFU wish to thank each and every farmer who played their part. We stood as a united force, determined to make a difference, and showed the government that they need to support and protect local food production and farming. It shows what can be done when we work together.”
The president confirmed the UFU will continue to lobby for further changes to IHT proposals in the longer term.
“We are in a better position today than we were yesterday, and we wish to thank the NI Executive, DAERA Minister, NI MPs and local politicians for their support and assistance,” said the president.
“But the work is still not done, 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.
“For now, this year has been an immense challenge for our local farmers, and hopefully this news will lift a weight off the shoulders of many families, allowing them to enjoy a peaceful Christmas and a prosperous new year.”
Also welcoming the decision is Upper Bann MP, Carla Lockhart who has been one of the most vocal opponents of the family farm tax both locally and in Westminster.
Ms Lockhart has consistently stood with farmers at protests and rallies, raised concerns directly with Ministers, and spoken repeatedly in the House of Commons on behalf of farming families who feared for the future of their livelihoods.
Speaking following the announcement, Carla Lockhart MP said: “This is welcome news for family farms across the United Kingdom and particularly here in Upper Bann. It 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. I have repeatedly challenged this policy in Parliament and stood shoulder to shoulder with farmers who were fighting for fairness.
“It is no secret that the government was dragged to this point kicking and screaming. Even when heartbreaking stories were shared, including fears that some people felt so overwhelmed they would rather give up everything than face this tax, there was little sign of compassion from those in charge.
“That said, this announcement is an improvement and it must be welcomed, particularly on the eve of Christmas Eve. The detail will matter, and I will be closely examining how these changes affect farms that still sit above the new thresholds.
“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. I will continue to stand up for them every step of the way.”
