Farmers launch legal review against Reeves’s farm tax

Chancellor Rachel Reeves faces a judicial review over inheritance tax reforms that could threaten the future of family farms. Farmers and rural business owners have served legal papers challenging the Government’s decision to cap Agricultural Property Relief (APR) and Business Property Relief (BPR) without proper consultation.

These reliefs currently shield farms and rural businesses from hefty inheritance tax bills.

New rules could devastate family farms

From April 2026, assets above £1 million will face an effective 20% inheritance tax under the proposed changes. While the Government claims the reforms are aimed at wealthy landowners, farming groups argue the policy risks driving working family farms out of business.

The claimants say the Treasury failed in its legal duty to consult properly before making the decision.

Huge bills and long-term uncertainty

Legal experts predict the reforms could impose substantial financial burdens, with typical farming operations potentially facing bills exceeding £300,000 — in some cases, the equivalent of two decades of farm income just to settle the tax.

Stuart Farr, a solicitor specialising in countryside law, said farmers have “embarked on what could become a long journey with an uncertain destination”. Even if successful, he warned the challenge “could ultimately still lead to the same outcome at some point in the future”.

With judicial review success rates at around 30%, Farr suggested the real aim may be to force a government U-turn, leveraging significant public support.

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