Ulster Farmers’ Union (UFU) president, William Irvine, is indicating that farm succession in Northern Ireland remains a complicated issue, despite the breakthrough on inheritance tax.
The week before Christmas saw the Chancellor of the Exchequer raise the tax-free allowances allowed under the new measure from £1 million to £2.5 million for each active member within a farm partnership.
This decision takes the overall allowance figure for many family farm businesses operated by a husband-and-wife team up to £5 million.
Irvine explained: “The breakthrough achieved before Christmas represents an £800,000 reduction in the inheritance tax bill that will be faced by farming businesses in Northern Ireland with a valuation of £5 million or more.
“But of even more relevance is the fact that the Chancellor’s most recent decision takes most family farmers in Northern Ireland out of the inheritance tax net altogether.”
The UFU president said that while this relief is a welcome development, “the reality remains that the inheritance tax legislation that comes into effect at the beginning of April 2026 still provides complex challenges for farm families striving to put a succession plan for the businesses in place”.
“And each business will be different in this regard. And on that basis, the need for all farming businesses to secure professional accountancy and legal advice remains a priority,” he added.
The UFU representative spoke at a press conference marking the beginning of the union’s 2026 series of President’s Road Shows.
He was joined by UFU deputy president, John McLenaghan.
Valuating farm assets
Both pointed to the need for farm operators to have their assets accurately valued as a matter of priority. This list includes land buildings, machinery, and livestock.
McLenaghan said: “For many farmers, this is a process that they will have never entered into before.
“But it is important that the full valuation of their businesses is now accurately assessed, given the fact that the inheritance tax legislation will shortly be fully confirmed.”
The UFU is also confirming that the inheritance tax thresholds will be a reviewed every five years.
“It’s important for this commitment to be followed through on,” McLenaghan continued.
“Over recent years we have seen tax-free allowances frozen, where income tax is concerned. And this is a simply a measure through which government can secure enhanced tax revenues.”
Irvine added: “The outcome of the inheritance tax process up to this point has fully vindicated the approach taken by the UFU.
“Throughout, we have taken an approach that has centred entirely on lobbying key decision makers with the real facts of the case.
“And we were unyielding in this regard.”
