Nearly nine in 10 NI farmers surveyed report inheritance tax stress

Nearly nine in 10 farmers surveyed in Northern Ireland say inheritance tax changes have increased family stress, while more than four in 10 have already reduced or reconsidered farm investment.

A new Ulster Farmers' Union (UFU) survey found that 89% of respondents reported increased stress or worry, including 60% who described the impact as significant.

The findings also reveal that 71% have become less confident about passing on a financially viable farming business to the next generation.

More than half of respondents, 59%, expect the changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) to create or increase an inheritance tax liability.

Some 37.2% anticipate potential bills of at least £100,000, while 23.4% expect liabilities of £250,000 or more.

The research, conducted between 29 September and 12 October, forms part of the UFU's 'A Budget to Back Farming' campaign ahead of the autumn budget.

Under changes introduced in April 2026, full inheritance tax relief is limited to the first £2.5 million of combined qualifying agricultural and business assets, with 50% relief applying above that threshold.

Unused allowances can be transferred between spouses or civil partners, potentially increasing the combined threshold to £5 million.

The government has previously estimated that 85% of estates claiming agricultural property relief would pay no additional inheritance tax under the reforms in 2026–27.

However, the UFU argues that the changes are already undermining confidence, investment and succession planning among its members.

UFU President John McLenaghan said: “These findings are nothing short of devastating.”

He warned that farming families often hold much of their wealth in land, buildings and machinery needed for food production, rather than readily available cash.

The survey found that 42.2% of respondents had reduced, postponed or cancelled farm investment, or were taking steps to do so, directly because of the tax changes.

The union fears this could affect farm modernisation, environmental improvements and productivity, with wider consequences for rural businesses.

Mr McLenaghan warned: “This is not a problem waiting to happen when a farmer dies. The damage is happening right now.”

Concerns are also growing over succession, with 49.2% reporting that their intended successor had become less willing, less financially able, or both, to take over the family farm.

The UFU warns that these pressures could discourage the next generation from entering farming and threaten the long-term future of family-owned businesses.

The survey also found that 83.7% of respondents identified reversing the inheritance tax changes as a priority for the chancellor's budget.

The union plans to present its findings to parliamentarians, calling for greater certainty over farm succession and investment.

Mr McLenaghan concluded: “Our message is simple: protect family farms, protect the next generation and protect the future of UK food production.”