NFU Mutual responds to today's budget

Sean McCann, chartered financial planner at NFU Mutual, said: “There were no changes to the plans that will see pensions included in inheritance tax calculations from April, which will bring added complications for farming families, particularly those with self-invested pensions who hold land within them.

“The IHT reliefs available on qualifying farmland don’t apply if it is held in a pension. For some, it may make sense to buy the farmland out of their pension.

“The changes from April will mean some families will be hit with a triple tax blow, through a combination of inheritance tax on the pension, loss of the tax break on the family home if their estate is worth more than £2m and additional income tax if their loved one dies after age 75.

“There are steps you can take to mitigate the impact, including ensuring you take your tax-free lump sum before age 75, while it may still be subject to inheritance tax it will avoid an additional income tax charge.

“We expect to see more people taking regular income from their pensions making use of the unlimited ‘gifts from normal expenditure’ exemption. This allows you to give regular gifts out of income, which provided they don’t impact your normal standard of living are immediately exempt from inheritance tax regardless of whether you survive seven years.

“Before deciding to make big changes, it’s important to take advice to ensure that in a rush to avoid the worst of April’s tax changes you don’t compromise your future financial security.’"

Responding to the Chancellor’s Budget, Retail NI Chief Executive Glyn Roberts said: “At first glance, it is difficult to see how this Budget will address the immediate challenges facing our local economy and high streets.

“We welcome the Chancellor’s announcement that around 70,000 small retail, hospitality and leisure businesses in England will be taken out of paying business rates altogether.

“The Barnett consequential funding that the Northern Ireland Executive receives as a result of this announcement must be used to deliver meaningful rates relief for small businesses here in Northern Ireland.

“Why should our members and other local small businesses, who already face the highest business rates burden in the UK, be denied the same support as their counterparts in England?

“Our high streets have the highest vacancy rates in the UK, at 25%. This is a clear indication of the pressure facing our town and city centres and the urgent need for action.

“The Executive now has an opportunity to use this additional funding to make a real difference. It must prioritise small business rates relief, support independent retailers and help tackle the growing high street vacancy crisis.

“Northern Ireland’s small businesses cannot afford to be left behind. The Executive must ensure that this Budget delivers tangible benefits for our local economy and the businesses at the heart of our communities.”