Farmers launch High Court challenge over inheritance tax reforms amid consultation row

"At the heart of the legal argument is the government's Tax Consultation Framework, introduced in 2011, which commits ministers to conducting at least one formal public consultation on major tax reforms. The claimants argue that the inheritance tax changes, which affect how farms and businesses are passed down through generations, clearly meet that threshold but were introduced without meaningful engagement."

"Under the proposed changes, due to take effect from April 2026, inheritance tax relief will be structured as follows: 100% relief on the first £2.5 million of qualifying agricultural and business assets, 50% relief on assets above that threshold, up to £5 million relief for married couples or civil partners, plus standard allowances, and any tax liabilities payable over 10 years, interest-free."

"Speaking ahead of the hearing, Tom Martin said he had been forced to leave his farm work to pursue legal action, describing the case as a fight for fairness. Outside the court, campaigners gathered under banners reading 'Keep Farms and Firms in the Family', highlighting growing unrest across rural and business communities."

Farmers and business owners have initiated a High Court judicial review challenging the government's inheritance tax reforms, specifically targeting changes to Agricultural Property Relief and Business Property Relief. The claimants argue that Chancellor Rachel Reeves breached the Tax Consultation Framework by failing to conduct mandatory formal public consultation on major tax reforms. The case, brought by Cambridgeshire farmer Tom Martin, his father George Martin, and campaign group Farmers and Businesses for Fair Tax Relief, contends that inheritance tax changes affecting family business succession clearly warrant consultation. The proposed reforms, effective April 2026, restructure relief with 100% coverage on £2.5 million of qualifying assets, 50% relief above that threshold, and extended allowances for married couples. Campaigners argue the changes threaten family-run enterprises and rural communities.

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