Chartered Accountants Ireland has criticised restrictions to agricultural property relief (APR) and business property relief (BPR) for inheritance tax in the UK.
The body’s Northern Ireland tax committee has expressed concerns about the recent tax announcement saying it will “starve businesses and the economy of much-needed investment”.
From April 2026, 100% relief for APR and BPR will be limited to the first £1m of combined agricultural property with any value above this receiving relief at 50%, effectively resulting in an inheritance tax liability of 20%.
Cróna Clohisey, Chartered Accountants Ireland director of members and advocacy said these proposals are already causing deep problems and distress for family businesses and farms.
“We understand that governments need to make difficult decisions. However, the lack of prior consultation on these particular changes means the government has failed to grasp the extent of the impact on genuine business and farming activity in the UK.”
Letter
In October, the Northern Ireland tax committee chair, Janette Burns, wrote to the Treasury to caution against reducing or restricting the scope of APR or BPR and highlighted the damaging impact it would have for family-owned businesses and farming.
A total of 84% of businesses in Northern Ireland are either family-owned or managed, and these businesses support over 325,000 jobs.
Farming is the biggest industry in the country with around 77% of its total land area of 1.35m hectares used for agriculture.
In June 2024, there were over 26,000 farming businesses in Northern Ireland supporting over 51,000 jobs.
“These changes will starve businesses and the economy of much-needed investment and could cause forced, premature business sales and the loss of jobs, lives and livelihoods,” added Clohisey.
“In the current uncertain geopolitical environment, the government needs to do whatever it can to protect genuine business and farming activity in the UK.”
Read more
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News in-brief from Northern Ireland
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Northern Ireland diary of events
Chartered Accountants Ireland has criticised restrictions to agricultural property relief (APR) and business property relief (BPR) for inheritance tax in the UK.
The body’s Northern Ireland tax committee has expressed concerns about the recent tax announcement saying it will “starve businesses and the economy of much-needed investment”.
From April 2026, 100% relief for APR and BPR will be limited to the first £1m of combined agricultural property with any value above this receiving relief at 50%, effectively resulting in an inheritance tax liability of 20%.
Cróna Clohisey, Chartered Accountants Ireland director of members and advocacy said these proposals are already causing deep problems and distress for family businesses and farms.
“We understand that governments need to make difficult decisions. However, the lack of prior consultation on these particular changes means the government has failed to grasp the extent of the impact on genuine business and farming activity in the UK.”
Letter
In October, the Northern Ireland tax committee chair, Janette Burns, wrote to the Treasury to caution against reducing or restricting the scope of APR or BPR and highlighted the damaging impact it would have for family-owned businesses and farming.
A total of 84% of businesses in Northern Ireland are either family-owned or managed, and these businesses support over 325,000 jobs.
Farming is the biggest industry in the country with around 77% of its total land area of 1.35m hectares used for agriculture.
In June 2024, there were over 26,000 farming businesses in Northern Ireland supporting over 51,000 jobs.
“These changes will starve businesses and the economy of much-needed investment and could cause forced, premature business sales and the loss of jobs, lives and livelihoods,” added Clohisey.
“In the current uncertain geopolitical environment, the government needs to do whatever it can to protect genuine business and farming activity in the UK.”
Read more
Breeding pedigree sheep is a family affair at Bodoney
News in-brief from Northern Ireland
Rush for entitlements with deadline looming
Northern Ireland diary of events
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