Headline: Farmers Lose High Court Challenge Over Inheritance Tax Reforms

Why this matters: The ruling allows Labour’s inheritance tax reforms affecting farms and family businesses to remain in force.

Date: 12 May 2026

Tags: Politics, Farming, Tax, UK

Summary:

• Farmers lost a High Court challenge against Labour’s inheritance tax reforms.

• Thomas Martin and campaigners brought the case against the Treasury and HMRC.

• Claimants argued ministers failed to properly consult affected groups before introducing the reforms.

• The legal challenge did not seek to overturn the tax policy itself.

• Judges ruled there was no legal obligation for the government to hold the consultation requested.

• The court said no “clear or unambiguous” promise of a full consultation had been made.

• Judges also ruled the legal challenge had been submitted too late.

• The court said parliamentary privilege limited judicial scrutiny of some government processes.

• Labour’s inheritance tax changes affecting agricultural and business property relief were announced in the 2024 Budget.

• The reforms officially took effect on 6 April 2026.

What’s next: Farming groups are expected to continue campaigning politically against the inheritance tax changes.