Features

Probate fees rise

The government has pushed ahead with its plans to change the way probate fees are charged. From April, the flat fee will be replaced with a new sliding scale.

"Some ghastly piece of legislation was always going to be passed while everyone was distracted by Brexit. Now we know what it is: a whopping hike in probate fees that will cost grieving families £145m in its first year," says James Coney in The Sunday Times.

The government has pushed ahead with its plans to change the way probate fees are charged. From April, the flat £215 fee (or £155 if paid through a solicitor) will be replaced with a new sliding scale.

If your estate is worth less than £50,000, you pay nothing. Between £50,000 and £300,000, the charge will go up by just £35 to £250. For estates worth £300,000-£500,000, the fee increases to £750, rising to £6,000 if your estate is valued at more than £2m.

Last week, ministers classified the controversial increase as a fee rather than a tax, meaning the changes could avoid full parliamentary scrutiny, says the Financial Times.

Yet "estates are effectively being double-taxed once for inheritance tax of 40% above the nil-rate band, and then again through tiered probate fees,"Rachael Griffin of wealth manager Quilter told the FT. On the other hand, those with the smallest estates will at least avoid fees altogether.

Recommended

The public may have reached its limit for tax rises
UK Economy

The public may have reached its limit for tax rises

The UK tax burden is now at a 70-year high. And, while there may be some reason to hold off on cuts right now, taxes are too high because the state t…
14 Jul 2022
The tax cut that would do most good
Tax

The tax cut that would do most good

Tory leadership candidates are promising tax cuts. Matthew Lynn explains which one the winner should prioritise.
14 Jul 2022
What makes up the price of a litre of petrol?
Budget

What makes up the price of a litre of petrol?

The cost of filling up the average car with petrol has risen to over £100. But how is that cost made up? Saloni Sardana explains just what makes up th…
28 Jun 2022
Which companies will lose the most from the energy windfall tax?
Energy stocks

Which companies will lose the most from the energy windfall tax?

The government’s new energy windfall tax has muddied the waters for investors and companies alike. Rupert Hargreaves explains how it might affect some…
27 May 2022

Most Popular

Don’t listen to the doom-mongers – the future is bright
Economy

Don’t listen to the doom-mongers – the future is bright

With volatile markets, raging inflation and industrial unrest, it may feel like things are bad and likely to get worse. But the end of the world is no…
15 Aug 2022
Investors should get ready for a political revolution
UK Economy

Investors should get ready for a political revolution

Liz Truss will beat Rishi Sunak, cut taxes, and then shake up the Bank of England, says Helen Thomas
15 Aug 2022
How solar panels could lower your energy bill
Energy

How solar panels could lower your energy bill

Solar-panel installation firms are reporting a four-fold increase in orders this year compared with 2021. Ruth Jackson-Kirby explains how solar can he…
14 Aug 2022