MAJOR changes to inheritance tax is a "brutal attack" that will have a "psychological impact" on young farmers, an accountant has warned. 

Omagh-based Seamus McCaffrey was one of a panel of speakers at a public meeting on inheritance tax which was organised by The Impartial Reporter and The Farmer's Voice, our new farming section. 

"No one saw it coming; it was so unexpected, a knee jerk reaction," said Mr. McCaffrey. "The key is, it's a brutal attack, because as well as financial consequences, it will have a psychological impact on farming families.

"This is particularly true when we have parents encouraging the next generation to join the family farm; for young people aspiring to join the family farm, this is coming as a severe knock."

Mr. McCaffrey said that while, at present, there is "no-one solution" to the new-found issue of inheritance tax, and that farmers should err on the side of caution. 

"At the moment there is no one solution, but there are options; common sense options," he said. "We have a window for 2026 until these rules appear to come into force. Farmers need to think if it is right to implement a transfer of land or property.

"Only if it's right to do so, and only if all members of the family are comfortable to do it, between now and April 2026 is an opportunity for those farming families. But only where they are comfortable and relaxed about it."

However, the accountant warned that transfers should not be made in haste, as succession that issues can easily cause conflict within farming families. 

"It is certainly very unwise for any farming family to embark on a transfer if they have any doubt in their mind or if they are uncomfortable," he continued. 

"It's very important for the succession of the farm that a transfer isn't done that causes conflict or ill-feeling, or where the parents regret doing it."

Mr. McCaffrey added that uncertainty still abounds over the family farm tax, and advised farmers to keep in regular contact with the solicitors and accountants as the situation develops. 

"There is a £1m exception, and at the minute there are no other options on the horizon.  This is because there is still so much uncertainty.

"Overall, when it comes to a change like this, there has to be a finance bill and all sorts of legal things produced. This could take a minimum of six months."