In the October 2024 Budget, Rachel Reeves announced quite fundamental changes to agricultural property relief and business property relief that left family farms and firms facing a potential inheritance tax charge of 20 per cent on assets worth over £1million from April 2026. She subsequently raised the threshold from £1million to £2.5million, or £5million for married couples.
However, there will now be a judicial review of these proposed changes. The judicial review effectively means claimants can argue the Government’s failure to consult fully on the plans was unlawful.
The Claimants argue that the Government’s decision to undertake only a limited technical consultation on a narrow aspect of the proposed inheritance tax reforms was unlawful. The Claimants maintain that the lack of a more comprehensive consultation fell well short of longstanding legal standards and breached the Government’s public law duties towards them and others.
Mrs Justice Lang DBE made an order on 19 January 2026, ruling that a hearing will take place over two days on dates to be announced in February or March 2026, which recognises that the issues raised are important, time‑critical, and require an urgent judicial decision.
Given the potential constitutional significance of some issues before the Court, it is understood that the Speaker of the House of Commons has been given permission to intervene as an ‘Interested Party’. This will allow his Counsel to assist the Court on matters of Parliamentary privilege, the separation of powers between the Courts and Parliament, and the permitted use of Parliamentary materials.
Watch this space!!!
Stephen Parnham
1st February 2026
