Family Farming in Northern Ireland

Robbie Moore Excerpts

Tuesday 28th October 2025 Westminster Hall

[Robbie Moore (Keighley and Ilkley) (Con)]

With over 26,000 farms in Northern Ireland, the value of farmland is incredibly high, if not higher, than in any other part of the United Kingdom. Does the hon. Lady agree that the negative impacts of changes to APR and BPR on Northern Ireland farmland will be much higher for those farming families than anywhere else across the United Kingdom?

[Carla Lockhart]

I agree with the hon. Member. I thank him for using his intervention to speak up for Northern Ireland farmers, because they will be hard hit because of the land values.

When a farmer dies, there is not the liquid cash available to meet a large inheritance tax bill. That is precisely why successive Governments introduced and retained APR, so that farms would not have to be sold off bit by bit, just to pay the tax man. It was a recognition that the nation needs farms to continue and not be broken up at the point of succession. The change is being dressed up as modernisation or rebalancing, but in reality it is an attack on the very concept of family farming. I am pleased to say that colleagues from every party in Northern Ireland have been absolutely united in our opposition to the policy.

--- Later in debate ---

[Dan Tomlinson]

The hon. and learned Member raises the CenTax report, and it is worth noting some points about the analysis in that report. First, the Government have consistently said that around 520 farms would be paying additional inheritance tax as a result of the reforms announced at the Budget last year.

Members from all parties have been turning to the CenTax report as an independent analysis of the Government’s reforms. That report agrees with us on the number of farms that will be affected. That independent analysis conducted separately from the Government comes out with the same conclusion on the number of farms that will be affected and it says that its proposal—the minimum share proposal, which the hon. and learned Member for North Antrim mentions—would more than double the number of estates that would pay additional inheritance tax. I do not think the right way forward is to have the number of estates that would be affected increase from about 500 to, I think, about 1,200. I have looked at the report, which has been raised by Members from all parties, but I do not think it is the silver bullet that others have concluded it could be.

The context I just set out is why we are changing how we target agricultural property relief and business property relief from April next year. We are doing so in a way that maintains a significant relief for estates, including smaller farms and businesses. Individuals will still get 100% relief for the first £1 million of combined business and agricultural assets. I know that Members know this, but it is worth setting out the position again. On top of that amount, there will be a 50% relief. That means that inheritance tax will be paid at a rate of up to 20% rather than the standard 40%.

[Robbie Moore]

A £1 million threshold is nothing when we take into account the value of farmland, a cottage, a farmhouse, growing crops, stocks in store, livestock and machinery valuations—all of which will be taken into account at the valuation of an estate on death. A £1 million threshold is nothing before a 20% IHT liability is put on that estate. I urge the Minister to look at this again. Farmland values are significantly higher in Northern Ireland, and I reiterate my point that Northern Ireland farmers will see a greater impact from the £1 million threshold.

[Dan Tomlinson]

I do not agree that £1 million is nothing. It is a significant increase and a significantly higher threshold than that for anyone who does not have access to APR or BPR. I understand the point about land values in Northern Ireland, but at the same time, as far as I am aware, farms in Northern Ireland are smaller than those elsewhere. It is also worth bearing in mind that the £1 million relief comes on top of the spousal exemptions and nil-rate bands, so, depending on individual circumstance, up to £3 million can be passed on by two people, free of inheritance tax, and, as has been mentioned, the payment can be spread over 10 years, interest free. That policy design is not seen anywhere else in the inheritance tax system.