- Having reported recently on the proposed increase in Probate fees to help fund the running of the courts and tribunals system a problem has arisen.
- An influential Parliamentary committee, named the Parliamentary joint committee on Statutory Instruments says that the Lord Chancellor’s decision to increase Probate fees in some cases by up to 129 times more than presently required, is more in line with a tax increase than a fee increase and should be referred back to both Houses of Parliament.
- This decision means that the proposed fee increase could now be delayed or scrapped altogether. It also means that even if the fee increase is approved it could be challenged successfully in the courts especially as the increase was opposed by almost all respondents during the consultation process.
- The government remains resolute with its plans. That said the fee increase will be considered by Parliament after the Easter break. As a result let us watch this space since it may be the death knell for the death tax?
- As a reminder the changes proposed mean that any estate worth 2 million or more will have to pay £20,000. The changed system works on a sliding scale as follows:-
1. Estates under the value of £50,000 - will pay nothing
2. Estates valued at between £50,000 - £300,000 will pay £300
3. Estates valued at between £300,000 - £500,000 will pay £1,000
4. Estates valued at between £500,000 - £1 million will pay £4,000
5. Estates valued at between £1 million - £1.6 million will pay £8,000
6. Estates valued at between £1.6 million - £2 million will pay £12,000 and over this figure, £20,000
- The above is an overview only. For a free appointment and to find out answers to the questions that need answering and to get the care you or a loved one need email Andrew Douglas or his team on ajd@awdrys.co.uk or call on 0800 072 8636. We have offices In Marlborough, Royal Wootton Basset, Devizes & Chippenham. Alternatively visit our website www. abdcare.co.uk
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