Dodds discusses Conacre issue with HM Treasury

Finance Minister Nigel Dodds has discussed the implications of the recent legal judgement on the Conacre tax issue with the Chief Secretary to the Treasury, Yvette Cooper, during a recent meeting in London.

The Minister took the opportunity to highlight the significant impact the recent Court of Appeal ruling would have on the agricultural community in Northern Ireland.

Speaking after the meeting, he said: “The agricultural industry plays a vital role in the local economy. With a third of our land let out as conacre, this ruling could have a significant adverse impact on the industry locally.

“I took the opportunity today to impress upon the Chief Secretary to the Treasury the importance of this issue and asked that she consider fully the repercussions of this ruling.

“While taxation is a reserved matter for the UK Government to determine, I have been in touch with HM Treasury over recent months to highlight this issue and its potential negative impact here.

“At a recent meeting with the Ulster Farmers Union, I stressed the imperative of all key stakeholders working together on this issue, explaining the scale of impact. This ruling has the potential to undermine future investment in our agricultural sector.”

The Chief Secretary has agreed to meet the Minister again to discuss the issue further.

Notes to Editors:

1. 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. This could mean that all transfers of conacre land could be liable to the full rate of inheritance tax.
2. Around a third of NI farmland is let under the conacre system, and it does not operate in any other parts of the UK.
3. 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.