As we predicted last Monday, following HM Treasury’s response to the Institute’s letter on this issue, on L-day the Government published draft finance bill clauses which confirm that the changes to Agricultural Property Relief and Business Property Relief will be proceeding as planned from April 2026. In the draft legislation as it currently stands, none of the recommended mitigations proposed by the Institute have been included. Read the Institute’s Press Release reacting to this in which we are seeking a special derogation from these changes for Northern Ireland, given the disproportionate impact of this in the region on the agricultural sector and family-owned businesses. The relevant Policy Papers on these reforms are also available here and here. The Institute is currently considering what further action is needed on this important issue and is also aiming to discuss this with local government. A full report on the other key announcements from L-day is covered later in this edition of Chartered Accountants Tax News. In the meantime, it is noteworthy that buried amongst the L-day publications is welcome confirmation that the Government has shelved Making Tax Digital for corporation tax.

Cróna Clohisey, Director of Members and Advocacy, Chartered Accountants Ireland said “Today’s revised National Development Plan (NDP) is a strong statement of intent towards securing Ireland’s competitiveness in the coming decade. It is encouraging to see such significant emphasis on addressing housing over the next five years. 1 in 4 SMEs surveyed by Chartered Accountants Ireland in April reported that their business has lost employees or seen prospective employees unable to take a role due to the unavailability of affordable housing. “Housing is only one element of the puzzle, however. We know the critical levers to delivery also include energy and water, so these significant deficits in the State’s infrastructure need to be addressed holistically if Ireland is to fully realise its ambition of becoming a place where businesses can thrive. Today’s announcements are a step in the right direction. “Another of the most frequent barriers encountered by our 40,000 members is access to childcare. Despite featuring as a key commitment in the Programme for Government, the revised NDP lacks detail on how more childcare places will be created for working parents. Greater priority must be given to an issue that so fundamentally affects the labour market. “As an all-island body, the Institute also welcomes the focus in the NDP on the Shared Island Fund, and we look forward to engaging with stakeholders on how the NDP will deliver cross-border infrastructure projects.”

Northern Ireland should be excluded from UK Government proposals to restrict the benefit of two key Inheritance Tax reliefs; agricultural property relief and business property relief, because of the disproportionate impact this is already having on the region’s agricultural sector and family-owned businesses. Chartered Accountants Ireland, the largest professional body on the island of Ireland, which represents over 5,000 members in Northern Ireland reiterated its position after the Government published draft legislation for the next Finance Bill. As announced last October, from April 2026, 100% relief will be limited to the first £1 million of combined agricultural and business property, with any value above this receiving relief at 50%, effectively resulting in an inheritance tax liability of 20%. Director of Members and Advocacy at Chartered Accountants Ireland, Cróna Clohisey said: “Yesterday on ‘L-day’, the Government published the draft Finance Bill clauses for this policy change which confirms, disappointingly, that they will commence from April 2026 as planned. On behalf of members, this Institute has engaged extensively with Government to emphasise the impact this will have in Northern Ireland. Farming is the biggest industry in NI, and farms and family-owned businesses are the heartbeat of our economy. “We recognise that in the current geopolitical and economic environment, difficult decisions are necessary, however, we feel that the impact of these changes has not been fully considered on a regional basis and will hit Northern Ireland harder. It is already causing forced, premature business sales and the loss of jobs, lives and livelihoods. Although we have some of the highest land prices in the UK, what the government has failed to grasp is that land values here do not correlate to the income generated. Any value is tied up in land and assets, not cash.” Data from the NI Assembly already suggests that by 2026 these changes will affect approximately 75 percent of dairy farms in Northern Ireland, which account for 60 percent of owned land and provide the majority of food production in NI. Clohisey continued: “Ultimately the Government is taking a broad-brush approach to address specific concerns that ‘non-farmers’ are investing in land to avoid inheritance tax. As a result, they are missing the opportunity to reframe this policy and include a range of mitigations to protect genuine farming activity and family-owned businesses.” Chartered Accountants Ireland is urging the Government to find a way to introduce a carve out for agricultural and family-owned business sectors in Northern Ireland. If there is not a willingness to do so, the Institute is calling on the Government to amend the draft legislation to include a range of mitigations. This would enable the Government to target this policy more effectively and reduce its negative impact before the legislation begins its journey through Parliament after the summer recess. ENDS