The High Court has agreed to fast‑track a judicial review into the government’s decision to impose new inheritance tax (IHT) charges on farming families — a move that could reshape rural succession planning, APR/BPR rules, and long‑term investment across the agricultural sector.
The case challenges whether ministers acted lawfully when introducing major reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) after only a limited technical consultation, despite the sweeping impact on family farms and rural businesses.
A High Court judge will now decide whether the government breached its own public‑law duties by failing to consult properly before implementing the changes.
Why This Judicial Review Matters for Farming Families
Cambridgeshire farmer and lead claimant Tom Martin says the case is about fairness, transparency, and giving rural businesses a genuine voice in tax policy.
“I am proud to speak for the concerns of farmers and business owners whose livelihoods would be impacted. The government improperly denied us the chance to influence the policy and its implementation.”
Lawyers representing Mr Martin and other farming families argue that the rushed consultation fell far short of long‑established standards — particularly given the likely consequences for family farms, diversified rural businesses, and long‑term rural investment.
Expert Opinion: A Divided Tax Community
Tax specialists are split on whether the judicial review will succeed.
- Dan Neidle, Tax Policy Associates, argues that challenges to primary tax legislation rarely succeed because “Parliament is sovereign.”
- Stuart Maggs, Howes Percival, believes the court could rule that the consultation breached the government’s own rules — potentially forcing ministers to revisit or withdraw the reforms.
The hearing is expected to take place over two days in February or March.
Sixteen Months of Uncertainty for Rural Businesses
The judicial review follows more than a year of upheaval after the government announced a 20% inheritance tax charge on farm assets above £1m.
Following widespread pressure — including tractor protests in central London — ministers increased the threshold to £2.5m (effectively £5m for married couples).
This offers some relief, but many businesses with:
- larger landholdings
- diversified operations
- high‑value machinery
- significant infrastructure investment
remain exposed.
If you’re unsure how your asset base might be affected, our farm finance options and refinancing & restructuring guidance can help you explore practical solutions. Please see links at the end of the article.
“This Fight Is Far From Over” – CLA Response
The Country Land and Business Association (CLA) has confirmed it will continue campaigning against the reforms.
Jonathan Roberts, CLA Head of External Affairs, welcomed the threshold increase but warned it does not go far enough:
“The threshold increase is welcome – but not enough. We fight on.”
He emphasised that the policy still threatens the viability of productive family businesses and undermines long‑term investment in rural Britain.
What This Means for Farmers and Rural Business Owners
Whether the judicial review succeeds or not, one thing is clear:
rural businesses need stability, clarity, and fair consultation — not sudden policy shocks.
The reforms have already prompted many families to review:
- succession plans
- asset structures
- borrowing capacity
- diversification strategies
- long‑term investment plans
If you’re considering restructuring, links at the end of this article direct you to more information in plain English.
Call to Action: Protect Your Farm’s Future
If you’re concerned about how the inheritance tax reforms could affect your farm or rural business, now is the time to take stock.
Farm & Country Finance can help you:
- understand how the reforms may affect your assets
- explore refinancing or restructuring options
- plan succession with confidence
- strengthen your borrowing position
- protect your family’s long‑term future
For a confidential, no‑nonsense conversation, speak to a rural finance specialist today.
Frequently Asked Questions
Will the judicial review stop the inheritance tax changes?
Not automatically. The High Court will decide whether the government acted lawfully in its consultation process. If the court finds the process was flawed, ministers may be forced to revisit or withdraw the reforms.
Does the £2.5m threshold protect most farms?
It helps many smaller family farms, but businesses with larger landholdings, diversified enterprises, or high‑value machinery may still face significant exposure.
Are APR and BPR being abolished?
No — but the reforms restrict how these reliefs apply, particularly for assets above the new threshold. Please see our previous article by clicking here.
Should I change my succession plans now?
It’s sensible to review your position. Even with the judicial review pending, the direction of travel suggests tighter rules and greater scrutiny of agricultural assets.
Can refinancing help reduce exposure to IHT?
In some cases, restructuring or refinancing can improve flexibility, reduce risk, or support succession planning. Every situation is different — our refinancing guide explains the options (please see links below):
Farm Finance, farm remortgages, agricultural loans, agricultural remortgages, finance for succession planning