Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of proposed changes to Agricultural Property Relief and Business Property Relief on family farms which are passed to multiple children, including where land has to be sold to meet that liability.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.
There are no changes to the underlying qualifying criteria or definitions for agricultural property relief and business property relief. For example, the longstanding rules mean, in order to qualify for agricultural property relief, the property must normally be agricultural property and occupied for agricultural purposes, such as cultivation to produce food for human and animal consumption. More information can be found at www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm24060.
There is a difference between the total value of a farm and the amount being passed on at death. For example, a farm can be jointly owned by multiple people or family members, meaning each individual’s claim for tax relief can relate to less than the total value of the whole farm. This is explained in more detail in the letter from the then Exchequer to the Treasury to the Northern Ireland Affairs Committee in January 2025. This is available at https://committees.parliament.uk/publications/46267/documents/232537/default/.
Information from claims is not recorded to enable regional or national breakdowns of the number of estates expected to be affected. However, the Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.
An updated tax information and impact note was published alongside Budget 2025 on 26 November 2025. This explains that the measure is not expected to have a material impact on food security or have a significant macroeconomic impact. It is available at www.gov.uk/government/publications/changes-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-changes.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential implications for his policies of parcels from Northern Ireland being incorrectly flagged for EU customs checks due to UK-wide system defaults.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government introduced important new arrangements for the movement of parcels moving to and from Northern Ireland, ensuring that goods can continue to move smoothly between Great Britain and Northern Ireland.
HMRC does not carry out routine customs checks on parcels moving into Northern Ireland from Great Britain, save those that are conducted on a risk and intelligence led basis to tackle fraud and criminality.
HMRC has published clear guidance to support parcel operators and continues to engage with the express sector regularly to ensure businesses and consumers in Northern Ireland benefit from these arrangements.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to help improve awareness and acceptance of XI VAT numbers among businesses outside Northern Ireland.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the member to the answer given to UIN 95354 on 04 December 2025
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to improve awareness and acceptance of XI VAT numbers among businesses outside Northern Ireland.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has published guidance on GOV.UK setting out the requirements for any business trading in goods between the EU and Northern Ireland and the need for an XI VAT number.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her department will conduct an assessment into the feasibility of exempting tips from income tax.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Employees pay tax on all payments that reward them for the work they do. This includes wages, tips, gratuities, or any share of a service charge that they receive. Whether National Insurance contributions are due on tips depends on how tips are managed in the workplace. More information on how tips are taxed can be found here: Tips at work: Tips and tax - GOV.UK'.
The Chancellor will announce any changes to the tax system at fiscal events in the usual way.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions her Department has had with the Department of Health and Social Care and the Department for Education on reforming Child Benefit rules to better support children experiencing mental-health crises who cannot attend school.
Answered by James Murray - Chief Secretary to the Treasury
Child Benefit remains in payment until 31 August following a child’s 16th birthday. This applies without any conditions on education, so there is no impact on children of this age if they are unable to attend school for any reason.
For young people who are over 16 and under 20, Child Benefit remains payable if they continue in full-time non-advanced education or training. Legislation allows for Child Benefit to continue being paid when this education is interrupted. This can be for a period of up to six months, or for as long as is reasonable if it is attributable to the illness or disability of mind or body. Child Benefit can also still be paid in respect of young people who cannot attend education for an average of more than 12 hours per week due to an illness or disability.
The Government does not hold data on the number of families where Child Benefit has stopped because a young person over 16 has not been able to attend education due to mental ill health.
Where a young person is unable to return to education because of mental ill-health or trauma, disability benefits may provide a more suitable form of long-term support.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has conducted an equality impact assessment on the effect of school-attendance-linked Child Benefit rules on children with mental-health-related disabilities.
Answered by James Murray - Chief Secretary to the Treasury
Child Benefit remains in payment until 31 August following a child’s 16th birthday. This applies without any conditions on education, so there is no impact on children of this age if they are unable to attend school for any reason.
For young people who are over 16 and under 20, Child Benefit remains payable if they continue in full-time non-advanced education or training. Legislation allows for Child Benefit to continue being paid when this education is interrupted. This can be for a period of up to six months, or for as long as is reasonable if it is attributable to the illness or disability of mind or body. Child Benefit can also still be paid in respect of young people who cannot attend education for an average of more than 12 hours per week due to an illness or disability.
The Government does not hold data on the number of families where Child Benefit has stopped because a young person over 16 has not been able to attend education due to mental ill health.
Where a young person is unable to return to education because of mental ill-health or trauma, disability benefits may provide a more suitable form of long-term support.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the impact of Child Benefit cessation on families where a child or young person is unable to attend school as a result of clinically evidenced mental-health conditions or trauma.
Answered by James Murray - Chief Secretary to the Treasury
Child Benefit remains in payment until 31 August following a child’s 16th birthday. This applies without any conditions on education, so there is no impact on children of this age if they are unable to attend school for any reason.
For young people who are over 16 and under 20, Child Benefit remains payable if they continue in full-time non-advanced education or training. Legislation allows for Child Benefit to continue being paid when this education is interrupted. This can be for a period of up to six months, or for as long as is reasonable if it is attributable to the illness or disability of mind or body. Child Benefit can also still be paid in respect of young people who cannot attend education for an average of more than 12 hours per week due to an illness or disability.
The Government does not hold data on the number of families where Child Benefit has stopped because a young person over 16 has not been able to attend education due to mental ill health.
Where a young person is unable to return to education because of mental ill-health or trauma, disability benefits may provide a more suitable form of long-term support.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate her Department has made of the number of families who have had Child Benefit reduced or withdrawn because a child or young person has been unable to attend school due to mental ill-health.
Answered by James Murray - Chief Secretary to the Treasury
Child Benefit remains in payment until 31 August following a child’s 16th birthday. This applies without any conditions on education, so there is no impact on children of this age if they are unable to attend school for any reason.
For young people who are over 16 and under 20, Child Benefit remains payable if they continue in full-time non-advanced education or training. Legislation allows for Child Benefit to continue being paid when this education is interrupted. This can be for a period of up to six months, or for as long as is reasonable if it is attributable to the illness or disability of mind or body. Child Benefit can also still be paid in respect of young people who cannot attend education for an average of more than 12 hours per week due to an illness or disability.
The Government does not hold data on the number of families where Child Benefit has stopped because a young person over 16 has not been able to attend education due to mental ill health.
Where a young person is unable to return to education because of mental ill-health or trauma, disability benefits may provide a more suitable form of long-term support.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to review Child Benefit eligibility rules linked to school attendance in relation to absence caused by severe mental ill-health or trauma.
Answered by James Murray - Chief Secretary to the Treasury
Child Benefit remains in payment until 31 August following a child’s 16th birthday. This applies without any conditions on education, so there is no impact on children of this age if they are unable to attend school for any reason.
For young people who are over 16 and under 20, Child Benefit remains payable if they continue in full-time non-advanced education or training. Legislation allows for Child Benefit to continue being paid when this education is interrupted. This can be for a period of up to six months, or for as long as is reasonable if it is attributable to the illness or disability of mind or body. Child Benefit can also still be paid in respect of young people who cannot attend education for an average of more than 12 hours per week due to an illness or disability.
The Government does not hold data on the number of families where Child Benefit has stopped because a young person over 16 has not been able to attend education due to mental ill health.
Where a young person is unable to return to education because of mental ill-health or trauma, disability benefits may provide a more suitable form of long-term support.