The Institute’s UK Tax Manager, Leontia Doran, delivered evidence on Monday in the Palace of Westminster to the House of Lords Economic Affairs Finance Bill Sub-Committee. As set out in the Institute’s Pre-Budget submission, Leontia told the Committee’s inquiry into draft Finance Bill 2025/26 that the number of farms affected in Northern Ireland will be much higher than the Government says. The Institute is also concerned about the impact on family-owned businesses in Northern Ireland. You can watch the evidence session here.
Leontia highlighted the cost and administrative burden of the changes and the lack of consultation by the Government on these policy changes, which thus far have failed to consider the human impact and the wider economic ripple effect.
In the lead in period to the changes taking effect from 6 April 2026, tax agents are already managing a very challenging workload including preparations for Making Tax Digital for Income Tax and mandatory tax adviser registration.
Leontia discussed the potential for transitional measures to reduce the impact on older taxpayers who may be unable to make lifetime gifts and survive the seven years necessary to avoid an Inheritance Tax liability.
Overall, the Institute is urging the Government to rethink the draft legislation and to introduce a range of mitigations to protect smaller farms and family-owned businesses. If this is not possible, Northern Ireland should be exempted from the changes given its unique circumstances. Further detail on the Institute’s recommendations is set out in our pre-budget submission.
Earlier this year the Institute wrote to the Exchequer Secretary to the Treasury to highlight the disproportionate impact of these changes on Northern Ireland.
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