‘Stealth tax’ probate fees increase to £20k on top of existing IHT
03 Mar 2017
Large rises in fees payable after death have been confirmed by the government and will affect millions of people in England and Wales.
Currently the fee is chargeable on any estate worth more than £5,000 but, from May, the threshold will rise to £50,000.
Those with estates worth between £50,000 and £300,000 will pay £300, with fees rising to a maximum of £20,000 for estates worth more than £2 million.
The government is going ahead with the system, despite just 8 per cent of respondents to a consultation agreeing that probate fees should reflect the value of the estate.
A Ministry of Justice spokeswoman says: “Fees are necessary to maintain an accessible, world-leading justice system which puts the needs of victims and vulnerable people first.”
Speaking to the BBC, a spokesperson comments: “HMRC is already seeing record levels of inheritance tax receipts, and these fee hikes are yet another stealth tax on the wealthy families.”
At Beavis Morgan, we can assist with both medium and longer-term financial planning to ensure that you, your family, and ultimately future generations of your family, will benefit from your wealth, in accordance with your wishes.
We also offer specific expertise on many aspects of landed estates and their associated rural businesses such as capital taxes planning, including mitigating exposure to inheritance tax and capital gains tax on chattels and land.