Dodds meets with Farmers' Union on conacre

Finance Minister, Nigel Dodds, today met with representatives from the Ulster Farmers’ Union (UFU) to listen to their concerns over the recent Court of Appeal ruling regarding tax relief on conacre land.

Speaking after the meeting, he said: “I welcome this opportunity to meet with the UFU. I am fully aware of the importance of the agricultural industry to the Northern Ireland economy and the potentially significant adverse impact of this decision.”

The minister stressed that taxation is a reserved matter for the UK Government to determine, but he has already written to HM Treasury to express serious concern over the issue.

He said: “This decision is all the more relevant given our unique system which sees a third of our land let out as conacre. I am deeply concerned about the impact this ruling could have on the Northern Ireland farming community.”

The minister assured the UFU that he was keen to work with them and the Department of Agriculture and Rural Development (DARD) on ways to alleviate the adverse impact of this ruling and that he would continue to press Treasury on the issue.

Notes to Editors:

1. The UFU has over 12,500 members. Its main mission is to promote and support a vibrant and sustainable rural economy where agriculture is secure and pivotal to its future.
2. In April 2008 a local Special Commissioners case was heard regarding the availability of Business Property Relief (BPR) on the development value of land set in conacre. It was decided that BPR was not available because conacre letting was deemed to be an investment activity rather than trading. A Court of Appeal recently decided to uphold this tax ruling.
3. Around a third of Northern Ireland farmland is let under the conacre system, and it does not operate in any other parts of the UK. Media enquiries only to DFP Communications Office on 028 9052 7374 or 028 9052 27375. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.