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\t\t A tractor, carrying the message \u201cStuck Farmer\u201d, drives in Westminster during a Farmers Protest over inheritance tax relief being slashed on February 10, 2025 in London, England. Demonstrators gather in central London to protest against changes to inheritance tax rules for land ownership for farmers. (Photo by Alishia Abodunde\/Getty Images)\t<\/p>\n
A group of farmers and business owners are seeking a judicial review of the government\u2019s contentious inheritance tax raid, arguing there should have been a public consultation before the policy was confirmed.<\/p>\n
The claim, which was served to the Chancellor and HMRC on Tuesday, does not seek any concrete changes to the overhaul but alleges the government failed to comply with its obligations to consult on significant shifts in tax policy.<\/p>\n
As part of its maiden Budget last Autumn, Chancellor Rachel Reeves tightened two decades-old carve-outs that spared farmland and family businesses from being liable to inheritance tax.<\/p>\n
She argued the exemptions \u2013 known as Agricultural Property Relief (APR) and Business Property Relief (APR) \u2013 were being abused by super-rich land and asset owners to get around paying the unpopular levy, and chose to cap the tax-free wrapper at \u00a31m.<\/p>\n
The decision, which doesn\u2019t come into force until April next year, sparked months of furious protests across the country from farmers, who dubbed the raid the \u2018family farm tax\u2019 and accused the Treasury of miscalculating<\/a> the number of farms caught up in the raid.<\/p>\n The agriculture industry has been the most vocal in its opposition, but family businesses were also caught up in the raid. The sector\u2019s fledgling industry body<\/a>, Family Business UK, has warned the move could cost the UK 200,000 jobs, as the owners of family-run firms weigh slashing investment to pay their looming inheritance tax bill.<\/p>\n The Treasury has previously argued<\/a> ending the carve outs would not target as many struggling businesses and farms as the sector claims. It has also said other exemptions and allowances \u2013 such as spousal exemptions, combining the thresholds for BRP and APR across different assets, and the fact those inheriting estates can pay the bill in instalments over 10 years \u2013 will soften the blow on farms and family business owners.<\/p>\n Current inheritance tax consultation \u2018too narrow\u2019<\/p>\n But in the proceedings, the claimants argue the government\u2019s decision to eschew any sector-wide consultation to the proposal risked it producing \u201cflawed legislation\u201d that would damage family-run farms and businesses. <\/p>\n \t\t\t\t\tRead more<\/p>\n