Farming families in Northern Ireland are facing a “devastating emotional toll” over inheritance tax, a union has said.
A membership survey from the Ulster Farmer’s Union said that nearly 90% felt increased worry or stress as a result of the changes.
There had been widespread protests in 2024 when the UK Government axed the 100% tax relief policy that had been in place since the 1980s.
Initially, a 20% rate on inheriting agricultural assets was imposed, but last year this was increased to £2.5m.
Farming groups across the UK are now renewing their demands to scrap the tax, which took effect in April this year, entirely ahead of the Autumn budget.
The UK government has said the current rules would “protect small family farms and businesses while ensuring the largest estates make a fair contribution”.
The UFU’s ‘budget to back farming’ survey also said that 60% reported “a significant increase” in family stress or worry which exposed the “deeply personal consequences” including difficult conversations about whether businesses built over generations could be passed on.
UFU president John McLenaghan said: “Behind every locally produced food item on our shelves is a farming family worried about its future.
“These are parents who have spent their lives working to build a business for their children, now questioning whether they will be able to pass it on without leaving them with an enormous financial burden.”
With rising costs and unpredictable markets, he added: “No farming family should have to lie awake at night worrying that a lifetime of hard work could leave their children facing an impossible financial decision, particularly when they have been told for decades that they will not have a liability to pay.”
Another impact was that half (49%) of intended successors had become less willing, less financially able, or both to take over the family business.
The UFU warned that these findings demonstrate how concerns about inheritance tax are affecting not only financial planning but also family relationships, confidence and decisions about the future.
Rural Support director of programmes Gyles Dawson added: “Farming is a generational way of life in Northern Ireland, and when the future of a family legacy feels threatened, the emotional toll can be overwhelming, which leads to circumstances that can be difficult to unravel.”
Mr McLenaghan urged the chancellor not to dismiss the findings as “simply another concern about taxation,” but an opportunity to restore confidence in family farming.
Farming families experiencing stress or worry can access advice online at www.ruralsupport.org.uk.
