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National

Hilary Benn urged to take NI farmers’ inheritance tax concerns to Treasury

By: PA News

Published: 15:48, 19 November 2024

Updated: 15:50, 19 November 2024

Northern Ireland Secretary Hilary Benn has been urged to take the point directly to the Treasury that changes to inheritance tax for farmers will have a “disproportionate” effect in the region.

DUP leader Gavin Robinson told Mr Benn that the controversy over the proposed changes presented him with an opportunity to be Northern Ireland’s “champion within the Government”.

During an appearance at the Northern Ireland Affairs Committee, Mr Benn said there was a “fundamental difference of view” on how many people would be impacted by the Government’s plans.

Hilary Benn gave evidence to the Northern Ireland Affairs Committee on Tuesday (Lucy North/PA)

Thousands of farmers and supporters took part in an event in Lisburn on Monday night to protest against the decision announced in last month’s budget.

A number then travelled to Whitehall on Tuesday where they joined protesters from across the UK.

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From April 2026, inherited agricultural assets worth more than £1 million, which were previously exempt, will have to pay inheritance tax at 20%.

There have been different claims about how many farms will be affected.

Mr Benn was asked at the committee what conversations he had had with the Treasury about the impact in Northern Ireland.

He said he had not had discussions with any Treasury ministers but had had a conversation with the Environment Secretary.

I completely understand the concern that has been expressed because this is a big change
Hilary Benn

He told MPs he had met the Ulster Farmers’ Union and representatives of young farmers.

He said: “I completely understand the concern that has been expressed because this is a big change.”

Mr Benn added: “I think the frustration for everybody is there is obviously an argument going on about to how many estates will it apply.

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“The Treasury is very clear, they have done their analysis and they say about 25%, but I think every farmer I met today is convinced it is going to apply to them.

“Now both of those things can’t be true.

“If, since 1992, you haven’t had to think about this at all and now you are going to have to think about it, what does it mean for your estate planning? What are the various allowances depending on the ownership structure of the farm? Have you got a spouse? Can you share allowances between you?

DUP leader Gavin Robinson (Brian Lawless/PA)

“That is something that, with all of the other things that farmers have got to deal with – making a living, the weather, the challenges that they’ve got – of course it is not welcome to them they have got to add that to the list.

“Only time will tell what the outcome is, but the farmers of course are making their voice heard.”

Mr Robinson said: “These questions really relate to whether your role is to be the Government’s champion in Northern Ireland or Northern Ireland’s champion within the Government.

“I can tell you there is a greater density of farms which remain in sole ownership or family ownership (in Northern Ireland) than is the case in England, Scotland or Wales.

“Also land values per acre, agricultural land is worth more in Northern Ireland than in England, Scotland or Wales and therefore there is a disproportionate hit to the people of Northern Ireland.

“So the question being asked – have you raised that with Treasury colleagues? – I think what we would like to hear is that you are prepared to do so and prepared to indicate to your colleagues that the change in inheritance tax relief is going to have a disproportionate hit on farmers and rural families in Northern Ireland than other parts of the United Kingdom.”

A very large number of people think this is going to apply to me, it may turn out that is not the case and that is the Treasury's view
Hilary Benn

Mr Benn said that as more information emerges about the impact of the tax change it should be considered by those taking the policy forward.

He added: “We are at a stage where there is an absence of some of that and a fundamental difference of view about how people are going to be affected, which adds to the concern.

“A very large number of people think ‘this is going to apply to me’ – it may turn out that is not the case and that is the Treasury’s view.

“A different starting point on what a proposition actually means is not a helpful place to begin from.

“If we could agree a set of facts about the implications, including the impact of higher land values in some parts of the United Kingdom compared to others, well that would be a good thing because we’d have a more informed debate.”

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