Tooks Chambers, which, led by Michael Mansfield, QC, has represented the family of Stephen Lawrence and fought miscarriage of justice cases such as the Birmingham Six, said its dissolution was "a direct result of government policies on legal aid".
Justice Secretary Chris Grayling's policies were "cumulatively devastating the provision of legal services and threatening the rule of law", the group said.
A statement on its website said: "It is with great regret that Tooks Chambers has decided to begin the process of dissolution.
"The dissolution of Chambers is the direct result of Government policies on legal aid. The public service we provide is dependent on public funding. Ninety per cent of our work is publicly funded."
Founded at the height of the miners' strike in 1984, Tooks barristers have been involved in a series of high-profile cases including the Hillsborough, De Menezes and Princess Diana inquests. The Chambers will wind up operations on October 11 before being formally dissolved on December 27. Its barristers will continue to practise and represent their clients.