MP welcomes changes to planned 'family farm tax' - but says further clarification is urgently needed

SOUTH Antrim MP Robin Swann has welcomed the watering down of the ‘family farm tax’.

Speaking after Government announced the planned threshold would increase from £1 million to £2.5 million, he said: “While this will be a relief for the majority of farming familes across the country, the Government now needs to move at speed and be fully transparent as to what it means to those who had already started to make alternative arrangements.

“During the past few months, I have hosted the Leadership team of the YFCU, a group from Rural Supports Plough-On and the Ulster Farmers Union, all pushed the case as to how our farm structures and set up would have been seriously impacted at all level of Government, and I’m glad that it seems as though their message got partially through.

“It’s unfortunate that the Government made this announcement just at the start of the Christmas Recess where now questioning and clarification will have to wait to the New Year, it really is a strange time to bury what could be viewed as good news.

“Clarification is needed as to the impact of current inter-generational partnerships and the impacts, father-son, uncle-niece and other combinations that exist.

“In the worked example the Government gives says - ‘..two people (such as siblings) who jointly own a farm will be able to pass on a farm up to £5.65 million tax free’.

“That is made up of £650,000, combining each of their standard £325,000 nil-rate bands, and on top of that, a £2.5 million tax-free allowance each for agricultural assets in their estate.

“Clarification is urgently needed as to what other relationships meet the ‘such as siblings’ definition.”