Posted: Friday, 19 February 2016 @ 08:38
With respect to probate, ministers are planning to introduce a new staggered payment system that would see charges increase according to the value of estates.
Currently probate fees are charged at a flat fee of £215.
The changes would bring in new fees of:
- £0 for estates worth less than £50,000
- £300 for estates worth more than £50,000 and up to £300,000.
- £1,000 for estates worth more than £300,000 and up to £500,000.
- £4,000 for estates worth more than £500,000 and up to £1million.
- £8,000 for estates worth more than £1million and up to £1.6million.
- £12,000 for estates worth more than £1.6million and up to £2million.
- £20,000 for estates worth more than £2m.
All this is done as a money spinner for the government as it seeks to reduce the deficit and follows on from the creation of the Employment Tribunal fees which has shifted the balance to the employer.
According to the Times the proposals will raise more than an extra £250 million for the Treasury.
Whilst the government is seeking to increase the IHT allowance for those that are married and have a home to £1 million, the proposals are so complex in implementation the primary beneficiaries of these proposals are specialist lawyers and accountants.
Currently you have an IHT allowance(nil rate band) of £325k.