Farming & Agriculture
We act for farming families across Mid Ulster and the wider province — dairy, beef, sheep, arable, poultry and mixed holdings, from part-time farms to substantial commercial operations, and a good number farming land on both sides of the border.
Farming is not like other trades and it is not served well by an accountant who treats it like one. Profits swing with the weather and the market. The single largest asset is usually the land the family lives on. And the tax reliefs that decide whether the farm passes on intact are the ones most often assumed rather than checked.
What we deal with
Agricultural and business property relief — the £2.5 million allowance
This is the one causing the most worry in farming families at the moment, and a good deal of the worry is based on the wrong figure.
The allowance is £2.5 million, not the £1 million originally announced — it was raised in December 2025. Above the allowance, relief runs at 50% rather than being lost. It is available to each spouse or civil partner, and it is not transferable between them, which is precisely why how the land is owned matters enormously and why so many farms are exposed for reasons that have nothing to do with their value.
The work here is unglamorous and it is the most valuable thing we do for farming clients: establish who actually owns what, whether the land qualifies, whether the farmhouse qualifies, and what happens on the first death rather than the second.
The Farm Sustainability Payment
Area-based support in Northern Ireland has changed twice in two years. The Basic Payment Scheme was replaced by the Farm Sustainability Transition Payment in 2025, and the Farm Sustainability Payment took over from 1 January 2026, bringing new eligibility conditions including the historic years criteria and the Farm Sustainability Standards.
The accounting question is when the payment is recognised and which year it falls into, because that decision moves taxable profit between years — and in a year where profit is already high, it moves the tax bill with it.
Averaging — evening out the good and bad years
Farming profits are volatile in a way that the tax system punishes: a strong year at higher rates followed by a poor year that wastes allowances. Farmers’ averaging lets profits be averaged over two years or five, which can bring a whole year’s profit back down a rate band.
It is a claim, not an automatic adjustment, and it has to be made in time. We look at it every year rather than only in the years someone thinks to ask.
The herd basis
An election that treats the production herd as a capital asset rather than trading stock. It changes how herd movements and disposals are taxed and can be very valuable — but the election is largely irreversible and has a time limit, so it is a decision to take properly rather than drift into.
Buildings, machinery and capital allowances
Sheds, slurry storage, roadways, machinery and plant all sit differently for tax. The annual investment allowance covers £1 million of qualifying expenditure, and structures and buildings allowance may apply where it does not. Getting a large shed into the right category is worth real money.
Diversification
Holiday lets, contracting, wind turbines, solar, farm shops, storage. Each one raises the same three questions: does it change the VAT position, does it affect agricultural property relief on the land it uses, and should it sit inside the farm business or beside it. The relief question is the one people find out about too late.
Farming across the border
Land in the Republic, stock moving both ways, contractors paid in euro, or a family with members resident either side. Two tax systems, two sets of returns, and a residence question that needs answering rather than assuming.
Succession — the conversation worth having early
The question we are asked most is some version of “will they have to sell land to pay the tax?”. The honest answer is that it depends almost entirely on decisions taken while everyone is still alive: how the land is owned, whether there is a partnership and what its agreement says, whether the farmhouse qualifies, and whether both spouses’ allowances are being used.
None of that can be fixed afterwards. All of it can be planned now.
Common questions
How much is the agricultural property relief allowance?
£2.5 million per person, raised from the £1 million originally announced. Above that, relief applies at 50% rather than being withdrawn. The allowance is not transferable between spouses, so how land is owned between a couple makes a substantial difference.
What replaced the Basic Payment Scheme in Northern Ireland?
The Basic Payment Scheme was replaced by the Farm Sustainability Transition Payment in 2025, and the Farm Sustainability Payment replaced that from 1 January 2026.
Can farming profits be averaged for tax?
Yes. Farmers’ averaging allows profits to be averaged over either two or five years, which can prevent a strong year being taxed at higher rates while allowances go unused in a poor one. It must be claimed within the time limit.
Will my family have to sell the farm to pay inheritance tax?
Not usually, if it is planned for. The outcome depends on how the land is owned, whether agricultural and business property relief apply, whether the farmhouse qualifies, and whether both spouses’ allowances are used. These are decisions to take while everyone is alive — they cannot be corrected afterwards.