Farmers in Northern Ireland have welcomed a change in British government tax policy they claimed would have shut down many family farms.
The UK government announced today it was more than doubling the threshold at which farms would become liable for inheritance tax.
Farm assets had been tax exempt since the 1980s.
But in the autumn budget of 2024 a threshold of £1 million was introduced after which the tax would kick in.
The change had been due to take effect in April 2026.
That threshold has now been more than doubled to £2.5m.
British Environment Secretary Emma Reynolds said the government had listened and the changes were being made "to protect more ordinary family farms".
The Labour government's plan to apply a 20% tax on agricultural assets of more than £1m, sparked huge protests, including in Northern Ireland.
They claimed the inheritance tax would stop family farms being handed down through the generations and see them bought up by speculators.
In January, 1,000 farmers took to the streets of towns in six co-ordinated cavalcades to protest the move.
Industry bodies like the Ulster Farmers' Union (UFU) had lobbied hard to have it changed.
Today the union said the move was a "step in the right direction, leaving farming families in a better position", though it cautioned that the outcome was not ideal for everyone.
"The government's decision to go ahead with the inheritance tax proposals was a shock to us all, but thankfully the sincerity and courage of our farm families who stood up and shared intimate fears for their farm has finally rung through," said UFU president William Irvine.
"This year has been an immense challenge for our local farmers, and hopefully this news will lift a weight off the shoulders of many families, allowing them to enjoy a peaceful Christmas and a prosperous new year."
