The next stage in the campaign against proposed government reform of agricultural property relief (APR) from inheritance tax (IHT) takes place this Saturday 25 January, with tractor rallies across the UK, including in Northern Ireland.

It is important that as many as possible make the effort to attend, thereby sending a strong message to government.

At the same time, the reality is that we are probably still in the early stages of what could be a prolonged campaign.

But if farmers don’t come out at this stage, then it will fundamentally weaken the case being put forward by our farm lobby.

The other reality is that government is unlikely to do a big policy U-turn and scrap any plans to reform IHT. However, there are changes that could be made which would significantly ease the burden on farmers and create a positive news story for government.

There is also the potential to raise the £1m APR threshold to a level (such as £5m) that would protect most family farms

The best scenario (and what government should have done in the first place) would be to put the proposals on hold to allow time for a detailed review and consultation on how best to reform IHT.

There is also the potential to raise the £1m APR threshold to a level (such as £5m) that would protect most family farms.

Similar to that, some experts have suggested a £20m APR limit for family farms –where land is passed to the next generation free of IHT, but then sold within a certain timeframe, full IHT would apply. This proposal would certainly reduce the incentive for wealthy people to buy up land to avoid IHT, although it might also result in even fewer acres coming to market.

Test

Other ideas include some form of ‘active farmer test’ for agricultural relief, similar to that which exists in the Republic of Ireland, where a person inheriting land must farm it for at least six years to qualify.

If nothing changes and new rules apply from April 2026, it will be a cruel policy

Even if none of these ideas are acceptable to government, just simply allowing the £1m of APR to be transferable between spouses would help in a lot of situations.

If nothing changes and new rules apply from April 2026, it will be a cruel policy – remember it is family farms where someone dies young or is caught in other tragic circumstances, that will be impacted most, as they will not have been able to gift away assets.