Disastrous budget for farming families in Northern Ireland, says TUV

Statement by TUV (Traditional Unionist Voice) East Londonderry representative vice chairman Councillor Allister Kyle:

“Every agricultural business with assets in buildings and land over £1m will be hit further with 20% inheritance tax. Livestock and equipment were already taken into account for inheritance tax.

“£1m sounds like a lot of money, and it is, but with the Northern Ireland average farm size being 41 hectares (101 acres), if ground was valued at £12k per acre and a farmyard and house valued at £400k, this would leave a tax bill of around £100k, on top of the livestock and equipment values.

“One needs to remember that land is not tax deductible when being purchased. Therefore, if a farmer purchases land he pays tax. When his son inherits the farm tax will be paid on the same land again. That is perverse.

“Many farmers will be forced to sell ground to clear this new tax bill which will then also trigger possible capital gains tax to be paid on the level that ground may have increased in value since the time it was bought.

“Currently 36% of farmers in Northern Ireland are 65 or over.

“When will the nation and its politicians start to respect those who put food on our tables?

“The agricultural sector isn't generally a cash rich business, most profits are usually re-invested in ground, yards or equipment to have a lasting legacy for future generations to keep on stewarding the land, caring for livestock and keeping us fed.”