Last week’s news that the Labour government in the UK has confirmed the proposed new £1 million threshold for agricultural and business property relief from inheritance tax will be increased to £2.5 million from 6 April 2026 will come as a big relief to farmers across Northern Ireland.

Up until the autumn budget, NI farmers faced the possibility of only being able to pass on £1 million in assets, with this allowance not transferable to a spouse.

The proposed changes had caused huge frustration, anger and worry for farmers, many of whom feared for the future of their farms if the changes came in as proposed.

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The changes will come as a major win for farm organisations who lobbied hard over the last 12 months to get changes made, organising a number of farmer protests as part of the campaign.

As a result of the changes, spouses or civil partners will be able to pass up to £5 million worth of qualifying agricultural or business assets, before paying inheritance tax on top of existing allowances. While the £5 million cap will still take in some larger farms in Northern Ireland, for the majority it means that they will be able to navigate the changes without the requirement to pay a huge inheritance tax bill.