Farmers, according to critics, are pursuing legal action against the government on controversial changes to the succession tax.
The judicial review could soon begin with the UK government’s decision to reform agricultural and business property relief (APR and BPR) without consulting the sector.
Reliefs that help protect farms and small businesses from critical inheritance tax burdens have long been seen as essential for preserving family-owned agricultural businesses.
James Austin, a partner at Collier Bristau, a law firm representing the claimant in a potential judicial review, has unveiled the legal basis for the challenge.
“The claimant’s position is simply that the government should be bound by public law obligations on tax policy issues,” he said.
“The claim calls for not attempting to overturn the government’s decision to amend the APR or BPR, but rather to contribute to appropriate consultation exercises to ensure that affected individuals and groups have the best possible evidence in developing tax policies for UK farms and businesses.”
The changes to APR and BPR announced in the October budget without prior warning are wary of the agriculture sector.
Many farmers warn that new rules could lead to forced land sales, threaten generational succession and destabilize rural economies, which are already under pressure.
Gordon of Harriet Cross and Scottish Conservative MPs from Buchan spoke in support of farmers who pursue legal action.
“It’s no surprise that farmers are trying to bring the UK government to justice for the horrific implementation of family farm taxes,” she said.
She accused the government of forcing change without meaningful involvement with those most affected.
“They not only seriously underestimate the number of farms affected by these tax changes, but workers forced this reckless policy 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 are supported by the corner by Keir Starmer and now they feel they have no choice but to take court action,” she said.
Meanwhile, the MPS Cross-Party Committee has put further pressure on the government by urging delays in inheritance tax reform.
In a report released in May, the Environment, Food and Rural Affairs (EFRA) Committee called on the pastor to postpone the final decision on changes to APR and BPR until October 2027, with the new rules coming into effect from April 2027.
The committee argued that such delays “enable the development of a better tax policy and provide the government with the opportunity to communicate a positive long-term vision for agriculture.”
