Farmers are pursuing legal action against the government over controversial changes to inheritance tax that, critics say, could threaten the future of family farms across the country.
A judicial review may soon be launched into the UK government’s decision to reform agricultural and business property relief (APR and BPR) without consulting the sector.
The relief, which helps protect farms and small businesses from significant inheritance tax burdens, has long been seen as essential to preserving family-run agricultural enterprises.
James Austen, partner at law firm Collyer Bristow, which is representing the claimants in the potential judicial review, clarified the legal basis of the challenge.
“The claimants’ position is simply that the government should be held to its public law obligations on matters of tax policy,” he said.
“This claim does not seek to overturn the government’s decision to amend APR or BPR but asks that affected individuals and groups can contribute to a proper consultation exercise to ensure the government has the best possible evidence when developing its tax policy for UK farms and businesses.”
The changes to APR and BPR, announced without prior warning in the October budget, have alarmed the agricultural sector.
Many farmers warn that the new rules could lead to forced land sales, threaten generational succession, and destabilise rural economies already under pressure.
Scottish Conservative MP for Gordon and Buchan, Harriet Cross, has spoken out in support of farmers pursuing legal action.
“It’s no surprise that farmers are looking to take the UK government to court over their dreadful implementation of the family farm tax,” she said.
She accused the government of forcing through the changes without any meaningful engagement with those most affected.
“Not only have they seriously underestimated the number of farms that will be affected by these tax changes, but Labour have forced this reckless policy through without any input from the industry,” she added.
The MP also noted that the decision not to consult the sector has generated widespread concern among farmers and rural stakeholders.
“They have been backed into a corner by Keir Starmer and now feel they have little choice but to take court action,” she said, describing the policy as “short-sighted, naïve and counter-intuitive.”
Meanwhile, a cross-party committee of MPs has added further pressure on the government by urging a delay to the inheritance tax reforms.
In a report published in May, the Environment, Food and Rural Affairs (EFRA) Committee called on ministers to postpone final decisions on changes to APR and BPR until October 2026, with any new rules coming into force from April 2027.
The committee argued that such a delay would “allow for better formulation of tax policy and provide the government with an opportunity to convey a positive long-term vision for farming,” while giving vulnerable farmers vital time to seek professional advice.
