Gildernew highlights concern on tax ruling

Agriculture and Rural Development Minister, Michelle Gildernew, MP, MLA has highlighted concerns emerging from the recent McClean Court judgment to remove Business Property Relief (BPR) from conacre land subject to Inheritance Tax.

Speaking during an Assembly debate on this issue, the Minister outlined the potential impact this could have both on the agricultural industry and the property market. The Minister explained afterwards, "Faced with threat of huge tax bills, some non-farming landowners who are in a position to do so will recommence farming activities of some manner with the aim of qualifying for BPR. That is an entirely understandable reaction as they try to protect their family farms. However, this will disrupt existing farm businesses that are relying on taking that land."

"Other families, especially in those outstanding cases held back by the tax authorities since the McClean ruling was first challenged, may have no choice but to sell land in order to meet the inheritance tax liability. Not only does this seem grossly unfair, it could also disrupt the market for development land."

The Minister also acknowledged the emerging concerns from some quarters that Agricultural Property Relief (APR) may also be a future target of the tax authorities and that, along with the Finance Minister, she would be meeting with the British Chief Secretary to the Treasury in October.

The Minister continued, "At the meeting with the Chief Secretary, I will be pushing for clarification on the matter of APR. I will also use the opportunity to outline the negative consequences of denying BPR on land let in conacre and will ask for alternatives to be considered. In addition, I will raise the issue of the outstanding cases as it seems most unfair to me that they now face huge inheritance tax bills without having had any prior warning or opportunity to plan their tax affairs."

The Minister concluded by cautioning that she did not want to raise undue expectations that the British Treasury would respond positively to any of these suggestions, pointing out that the Assembly still has no fiscal autonomy and is unable to change taxation law, but stressed that she would push as hard as she could for a better outcome for the families concerned.

Notes to Editors:

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