The High Court in the UK will soon host a major legal case against the government’s plans to alter its inheritance tax reliefs for farmers and businesses.
The case will mainly concentrate on APR and BPR, which have traditionally helped farmers and businesses avoid huge tax bills when an individual passes away. However, the new plans, as outlined in the Autumn Budget 2024, will see the government limit the full relief and introduce caps, with the new rules coming into effect on April 6, 2026.
A date has now been set for the hearing, and this will take place over two days, March 17 and 18, 2026, at the Royal Courts of Justice in London.
What is also interesting is that this is a judicial review, and this is unusual in that the decision will not just be made by a single judge but also by a panel of senior judges, known as the Divisional Court. This indicates the level of importance the case is deemed to have.
What is also significant is that the court has allowed a rolled-up hearing, which means they will consider not just whether the case can proceed but also the main arguments at the same time.
Those involved in the case include Cambridgeshire farmer Thomas Martin, his father George Martin, professional firm Alvarez and Marsal, and the group Farmers and Businesses for Fair Tax Relief, and they are represented by lawyers from Collyer Bristow.
Their main argument is that the government failed to properly consult before introducing these major reforms.
They argue that the government ignored their own rules and guidelines on tax policy, which date back to 2011 and require full and open discussion with those involved.
Instead, there was just a brief technical consultation on certain aspects of the plan, and this was insufficient, in the claimants’ opinion.
Tom Martin talked about the case and explained that it is, in fact, all about whether or not the government had spoken to the farming industry in the correct way.
He and the other claimants hope that it will be a good case and that it will benefit farmers and people in the countryside in general.
Meanwhile, the farm support group Save British Farming is supporting the claimants in this case.
Liz Webster, the founder of the group, who is a farmer in Wiltshire, said that this could be a turning point against what she calls the government’s farm tax grab and that it could have major implications before the changes are due to come in in April.
Save British Farming will be holding a peaceful demonstration of support for the claimants outside the court on both days of the hearing, starting at 9 am, and they want people to turn up on foot, without tractors and loud machinery, so that the court case is respected.
The government has already made some changes to the original plans, including increasing the limit on relief from one million pounds to two and a half million pounds for individuals or five million pounds for couples.
However, the claimants are not seeking to challenge the law in its current form. They want the court to rule that the consultation process was unlawful.
In this case, the government will have to think again and consult on the plans before introducing them in April.
Currently, an online fundraiser aimed at raising money towards the cost of the lawsuit has raised over forty thousand pounds.
James Austen, from Collyer Bristow, stated that the matters at hand are quite serious, especially because they involve the issue of consultation before the government can make reforms affecting families and businesses nationwide.
Meanwhile, individuals in the agricultural sector are keenly interested in seeing what is going to happen in this very important case.
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