Probate Fees – Tax or fees?
Estates worth £500,000 – 1 Million will see an increase of £2,285.00
The House of Commons Delegated Legislation Committee has today* taken the first step in allowing a huge hike in probate fees to hit bereaved families, with fees proposed to be based on the value of the estate, not the amount of work involved to issue the grant.
This won’t just hit multi million pound estates- those worth from £500,000 up to £1 million will pay £2,500.00 – a rise of £2,285.00 over the current fee- in addition to any Inheritance Tax already due.
Frankly, I find it hard to see how something charged based on value isn’t a tax, but by calling it a fee, the government can use delegated legislation to push the changes through with less scrutiny (Raising taxes isn’t allowed by this method).
Let’s all hope the House of Commons sees sense when asked to vote on the legislation.
There are things you can do to avoid the need for probate on your death. They don’t work for everyone- but we can talk them through with you if you wish.
*7th February 2019