Taxman 9 - Taxpayer 8

Taxman 9 - Taxpayer 8

If it were a football match it would have been a great game … 

On 8 February the draft changes to the probate court fee were approved by the House of Commons Delegated Legislation Committee by a majority of 9 to 8.  This means that the Statutory Instrument will go before the House of Commons, where it is likely to be approved.

The changes will be introduced in April and guidance on how the fee can be paid should be published before then.

What this means?

The current fees for obtaining a Grant are £155 if using a solicitor and £215 without.  The proposed fees, where probate is needed, are set out below:

  • Value of estate (before inheritance tax) is up to £50,000 - proposed fee is £0
  • Value of estate (before inheritance tax) is between £50,000 - £300,000 - proposed fee is £250

  • Value of estate (before inheritance tax) is between £300,000 - £500,000 - proposed fee is £750

  • Value of estate (before inheritance tax) is between £500,000 - £1m - proposed fee is £2,500

  • Value of estate (before inheritance tax) is between £1m - £1.6m - proposed fee is £4,000

  • Value of estate (before inheritance tax) is between £1.6m - £2m - proposed fee is £5,000

  • Value of estate (before inheritance tax) is over £2m - proposed fee is £6,000

Whilst the fees are lower than previously proposed there is still a 3,770% increase for estates over £2m (£155 to £6,000).  Whilst it is estimated that 80% of estates will pay £750 or less this will not be the case for the majority of those living in London and the South East where property prices have led to increased wealth.

If you are needing to apply for a Grant of Probate we would advise you to make the application early as there will be delays with applications building up before the above fees come into effect.  If you do need any advice on Probate please contact us and ask about our 30 minute free consultation.