Written questions by Eastwood.

What assessment she has made of the potential impact of proposed Agricultural Property Relief reforms on the level of productive farmland and food security; and whether she has consulted the Secretary of State for Environment, Food and Rural Affairs on these matters.

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.

If she will define active farming for the purposes of proposed changes to Agricultural Property Relief, including whether this includes farmers who work in partnership with successors, or who have partially stepped back from physical labour.

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.

What assessment she has made of the potential impact of the proposed Agricultural Property Relief reforms on farms in Northern Ireland.

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.

What assessment she has made of the potential long-term economic impact of the proposed Agricultural Property Relief reforms on the viability of farm businesses where land has to be sold to meet inheritance tax liabilities.

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.

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.

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.

What steps she is taking to help improve awareness and acceptance of XI VAT numbers among businesses outside Northern Ireland.

I refer the member to the answer given to UIN 95354 on 04 December 2025

Whether her earned settlement proposals would apply to the family members of Irish citizens.

The earned settlement model is currently subject to a public consultation. Full details on earned settlement will be finalised following the conclusion of that public consultation.

What plans the Government has to update (a) digital systems and (b) guidance to reflect Northern Ireland’s trading position under the Windsor Framework.

The Government has announced £16.6 million to strengthen the UK internal market and help Northern Ireland boost trade with Great Britain. A comprehensive ‘one stop shop’ regulatory support service will help businesses trade across the UK and EU markets and benefit from Northern Ireland’s unique dual market access. The service will provide tailored advice to businesses on the rules they need to follow and the facilitations available to them.

What plans the Government has to update digital systems and guidance to reflect Northern Ireland’s trading position under the Windsor Framework.

The Government has announced £16.6 million to strengthen the UK internal market and help Northern Ireland boost trade with Great Britain. A comprehensive ‘one stop shop’ regulatory support service will help businesses trade across the UK and EU markets and benefit from Northern Ireland’s unique dual market access. The service will provide tailored advice to businesses on the rules they need to follow and the facilitations available to them.

Whether he has discussed with Royal Mail updating the international addressing systems so that Northern Ireland can be selected as a distinct region.

International addressing systems are operational tools, owned and maintained by Royal Mail, with their primary purpose being to ensure the accurate sorting, routing and delivery of customers’ mail. Royal Mail keeps this under review for its purposes. Royal Mail is an independent business and therefore the government does not have a role in Royal Mail’s commercial or technical decisions.

Whether he has discussed with Royal Mail updating international addressing systems so that Northern Ireland can be selected as a distinct region.

International addressing systems are operational tools, owned and maintained by Royal Mail, with their primary purpose being to ensure the accurate sorting, routing and delivery of customers’ mail. Royal Mail keeps this under review for its purposes. Royal Mail is an independent business and therefore the government does not have a role in Royal Mail’s commercial or technical decisions.

What steps she is taking to improve awareness and acceptance of XI VAT numbers among businesses outside Northern Ireland.

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.

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.

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.

Innovation and Technology, what steps she is taking to ensure .eu and .ie domain registration systems recognise Northern Ireland as an eligible territory.

The eligibility criteria are not the responsibility of the UK Government, and we have made no such steps.

If she has made an assessment of the potential merits of retrospective protections for BNO dependants unable to meet the sustained economic contribution requirement.

The Government remains steadfast in its support for members of the Hong Kong community in the UK.BN(O) visa holders will attract a 5-year reduction in the qualifying period for settlement, meaning they will continue to be able to settle in the UK after 5 years’ residence, subject to meeting the mandatory requirements.The new mandatory requirements for settlement are basic requirements that we think are reasonable for people to meet if they want to settle here. However, we are seeking views on earned settlement through the public consultation A Fairer Pathway to Settlement and will continue to listen to the views of Hong Kongers. Details of the earned settlement model will be finalised following that consultation. An impact assessment will be developed alongside the finalised policy.In the meantime, the current rules for settlement under the BN(O) route will continue to apply, including the B1 English language requirement from which applicants aged 65 or over are exempt.

Whether individuals from Hong Kong who have been granted asylum or refugee status will be required to meet a 20-year settlement requirement.

The Government remains steadfast in its support for members of the Hong Kong community in the UK. We fully recognise the significant contribution that Hong Kongers have already made to the UK, and the role they will continue to play in the years ahead. Those on the BN(O) visa route will receive a 5-year reduction under the new earned settlement model. For those recognised as refugees, we will introduce a starting point of a 20-year qualifying period of settlement. Those who move from core protection onto the new core protection-work and study routes will be able to earn reductions. Resettled refugees who have been granted protection and moved to the UK through official resettlement programmes are intended to start at 10 years, bringing them in line with other arrivals on planned migration routes. Beyond this, full details of the new earned settlement model will be finalised following the currently ongoing public consultation.

Whether the proposed requirement for a sustained economic contribution under the BNO visa application route will apply to all adult applicants, including non-working spouses, unpaid carers, full-time students and retirees.

The Government remains steadfast in its support for members of the Hong Kong community in the UK.BN(O) visa holders will attract a 5-year reduction in the qualifying period for settlement, meaning they will continue to be able to settle in the UK after 5 years’ residence, subject to meeting the mandatory requirements.The new mandatory requirements for settlement are basic requirements that we think are reasonable for people to meet if they want to settle here. However, we are seeking views on earned settlement through the public consultation A Fairer Pathway to Settlement and will continue to listen to the views of Hong Kongers. Details of the earned settlement model will be finalised following that consultation. An impact assessment will be developed alongside the finalised policy.In the meantime, the current rules for settlement under the BN(O) route will continue to apply, including the B1 English language requirement from which applicants aged 65 or over are exempt.

Whether B1 English-language qualifications will remain valid for current BNO visa holders approaching eligibility for Indefinite Leave to Remain; and what assessment she has made of the potential impact of raising the requirement to B2 on carers, older applicants, and lower-income households.

The Government remains steadfast in its support for members of the Hong Kong community in the UK.BN(O) visa holders will attract a 5-year reduction in the qualifying period for settlement, meaning they will continue to be able to settle in the UK after 5 years’ residence, subject to meeting the mandatory requirements.The new mandatory requirements for settlement are basic requirements that we think are reasonable for people to meet if they want to settle here. However, we are seeking views on earned settlement through the public consultation A Fairer Pathway to Settlement and will continue to listen to the views of Hong Kongers. Details of the earned settlement model will be finalised following that consultation. An impact assessment will be developed alongside the finalised policy.In the meantime, the current rules for settlement under the BN(O) route will continue to apply, including the B1 English language requirement from which applicants aged 65 or over are exempt.

Whether young adults currently in full-time education, who were under 18 at the time of their initial BNO visa application, will be exempt from the proposed sustained economic contribution requirement.

The Government remains steadfast in its support for members of the Hong Kong community in the UK.BN(O) visa holders will attract a 5-year reduction in the qualifying period for settlement, meaning they will continue to be able to settle in the UK after 5 years’ residence, subject to meeting the mandatory requirements.The new mandatory requirements for settlement are basic requirements that we think are reasonable for people to meet if they want to settle here. However, we are seeking views on earned settlement through the public consultation A Fairer Pathway to Settlement and will continue to listen to the views of Hong Kongers. Details of the earned settlement model will be finalised following that consultation. An impact assessment will be developed alongside the finalised policy.In the meantime, the current rules for settlement under the BN(O) route will continue to apply, including the B1 English language requirement from which applicants aged 65 or over are exempt.

Whether the proposed Migration Quantitative Indicators and changes to existing exemptions, including the English-language waiver for applicants aged 65 and over, will apply to current BNO visa holders who are nearing eligibility for Indefinite Leave to Remain under the rules originally in place.

The Government remains steadfast in its support for members of the Hong Kong community in the UK.BN(O) visa holders will attract a 5-year reduction in the qualifying period for settlement, meaning they will continue to be able to settle in the UK after 5 years’ residence, subject to meeting the mandatory requirements.The new mandatory requirements for settlement are basic requirements that we think are reasonable for people to meet if they want to settle here. However, we are seeking views on earned settlement through the public consultation A Fairer Pathway to Settlement and will continue to listen to the views of Hong Kongers. Details of the earned settlement model will be finalised following that consultation. An impact assessment will be developed alongside the finalised policy.In the meantime, the current rules for settlement under the BN(O) route will continue to apply, including the B1 English language requirement from which applicants aged 65 or over are exempt.