The decision was formalized on July 4, 2025, after Palestine Action lost a vital court appeal that sought a temporary reprieve against the government's ban. The ruling takes effect at midnight local time. While the full legal battle continues, with the next hearing set for July 21, this interim ruling imposes strict limitations on members and supporters of Palestine Action. Actions deemed illegal include fundraising, glorifying the group's efforts, organizing events, sharing social media content, or wearing affiliated merchandise.

Critics have voiced strong discontent regarding this landmark use of the 25-year-old UK terrorism definition that targets "serious damage to property" rather than focusing on violent activities. Human rights advocates and international organizations, including UN special rapporteurs, have raised alarms that such a designation could criminalize peaceful protests that involve property damage without the intent to harm individuals. They argue that this signals a dangerous precedent for the treatment of activism and resistance movements across the UK and beyond.