'A potentially killer blow': Despair at how Autumn Budget will hit farmers with massive tax bill

The chancellor announced that from April 2026, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax upon someone’s death.

But for assets over £1m, inheritance tax will apply with 50% relief, at an effective rate of 20%.

The DUP, TUV, UUP, and UFU have also issued statements strongly condemning the move.

Sarah Wray, a senior associate at the international law firm Charles Russell Speechlys, said it is “extremely sobering news for farmers”, because “£1m is likely to be insufficiently generous for even the smallest of farms, meaning that practically all farmers can now expect to be subject to inheritance tax on their deaths”.

The DUP called it a “potentially killer blow” for farmers, the UUP said it “will crush farmers”, and the TUV called it “disastrous”.

UUP peer Lord Elliott said: “The significant changes to Agricultural Property Relief in the budget is likely to force many family farms out of business that have been within the family structure for generations.”

TUV East Londonderry councillor Allister Kyle said: “£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.”

He added “many farmers will be forced to sell ground to clear this new tax bill”.

UFU president William Irvine said he is “bitterly disappointed”.

"The low threshold means this will affect every family farm business,” he said.

"The government’s stance has shattered trust and signals an alarming disconnect between policymakers and the realities facing family farms…

"This is a bad decision for the economy and for family farms and without action, these changes will compromise our nation’s food security.”