A growing number of UK farmers are gearing up to challenge the government in court over proposed changes to inheritance tax (IHT) reliefs that, they argue, could threaten the survival of family farms.
The controversy centres on Agricultural Property Relief (APR), a key tax benefit that has allowed farming families to pass on land and buildings without triggering large tax bills. For decades, this relief has recognised the unique challenges and long-term commitment required to run a farm—often passed down through generations. Now, however, proposed reforms could significantly restrict who qualifies and what property is eligible.
Under current rules, APR can provide up to 100% relief on qualifying agricultural property, such as farmland and farm buildings. But the government’s consultation, launched earlier this year, suggests tightening these criteria. Officials argue the existing rules are too generous and open to abuse by wealthy landowners who are not actively involved in farming.
However, many in the agricultural sector see this move as a direct threat to family-run farms. They fear that, without full relief, inheriting farms will become unaffordable—forcing families to sell land or take on large debts just to cover the tax bill. The National Farmers’ Union has voiced strong opposition, warning that such reforms could have “devastating consequences” for rural communities.
It’s not just rhetoric. Several farming families are now pursuing legal action, claiming the proposed changes unfairly penalise those who have built businesses around long-standing and legitimate use of the relief. One family from Lincolnshire, which has farmed the same land for over 150 years, says the reforms could force the sale of key parts of their estate, undermining their ability to continue farming and employing local workers.
The government maintains that its review is focused on fairness and modernisation. Officials note that APR was introduced in the 1970s, and argue that it no longer reflects modern land ownership patterns. The Treasury insists it is consulting with stakeholders and will consider the needs of genuine farmers.
But for many in the countryside, this feels like another blow at a time when the agricultural sector is already grappling with volatile markets, post-Brexit trade uncertainty, and environmental regulation.
While the legal battle is still in its early stages, it marks a significant moment. For the first time in recent memory, farmers are collectively challenging the government’s tax policy in court—a sign of how high the stakes have become.
As the consultation period closes and the legal process unfolds, farming families across the UK will be watching closely. At issue is not just a matter of tax law, but the future of family farming itself.