Farmers and Business Leaders Challenge Government Over Inheritance Tax Reforms

A coalition of prominent UK farmers and entrepreneurs is launching a judicial review against the government, accusing it of bypassing essential consultation over significant Inheritance Tax (IHT) reforms. These changes target Agricultural Property Relief (APR) and Business Property Relief (BPR), which currently help protect family farms and businesses from large IHT bills.

The legal challenge was initiated by law firm Collyer Bristow LLP, which has served legal proceedings against both the Chancellor and HMRC. The claimants argue that the government violated longstanding policy by not holding a formal consultation before proceeding with changes that will significantly affect farmers and small business owners.

Who is involved in the case?

Three named parties are bringing the judicial review:

1. Thomas Martin (45) – A sixth-generation farmer from near Peterborough, Cambridgeshire. Known widely as “Farmer Tom” on social media, he also runs Farmer Time, a not-for-profit initiative that connects schoolchildren with farmers via video calls to promote agricultural education. He is a strong advocate of regenerative farming.
2. George Martin (74) – Thomas’s father and senior partner in their long-standing family farming business.
3. Steve Perez (68), a key supporter of Farmers and Businesses for Fair Tax Relief  is a well-known entrepreneur from Chesterfield. He is the founder of Global Brands Ltd and owner of Casa Hotel and Peak Edge Hotel, all supplied in part by his Walton Lodge Farm. Perez cancelled £20 million in planned investments in response to the IHT proposals, citing concerns over the future of his business and job creation—nearly 100 new jobs were expected to result from those investments.

What is the legal argument?

The claimants are not seeking to block the reforms outright. Instead, they want the government to hold a proper consultation process to ensure that those most affected, farmers and small business owners, can provide input.

Lawyer James Austen from Collyer Bristow, who is representing the claimants, stated that while the government has the right to change tax policy, it must follow due process, including engagement with stakeholders. He emphasised the multi-generational commitment of the claimants to their land, businesses, and local communities.

Wider political pressure

The challenge comes amid growing political pressure. In May 2025, the Environment, Food and Rural Affairs (EFRA) Committee, a cross-party group of MPs, called on the government to delay any IHT changes. The committee recommended that final decisions on APR and BPR be postponed until October 2026, with implementation no earlier than April 2027.

They argued that such a delay would give:

• The government more time to shape tax policy thoughtfully,
• Affected businesses time to seek professional advice,
• Space for a clearer, long-term vision for UK farming.

If you would like advice on any of the issues raised in this article, please get in touch via our contact page or contact Aimee Bowles directly here. 

Claimants are concerned by the government’s refusal to hold a formal consultation on its proposed changes to APR and BPR, despite the widespread concerns that have still not been addressed

https://www.farminguk.com/news/farmers-and-entrepreneurs-take-government-to-court-over-iht-reforms_66907.html