Progressive Capital Taxation.

27th February 2017

Probate: Fees hike to go ahead.

Despite an overwhelmingly negative response to its proposals, the Ministry of Justice has confirmed that it is pressing ahead with the introduction of a new scale of fees to be imposed on the executors of deceased estate. Up to now, when executors apply for probate, a flat rate fee of £215 has been payable to the Probate office unless the estate is valued at less than £5,000. But with effect from a date to be confirmed a sliding scale will apply and the amount payable will be linked to the value of the estate as follows:

Value of estate                                                                                                 Proposed fee

Up to £50,000                                                                                                                     £0

£50,001 to £300,000                                                                                                  £300

£300,001 to £500,000                                                                                            £1,000

£500,001 to £1m                                                                                                        £4,000

£1m to £1.6m                                                                                                                £8,000

£1.6m to £2m                                                                                                              £12,000

Over £2m                                                                                                                   £20,000

The fee must be paid before probate will be granted along with the inheritance tax due on the estate. This will add to the often difficult cash flow position executors can find themselves in when an estate is asset rich but cash poor. Furthermore the probate fee is not deductible from the estate for the purpose of calculating inheritance tax so valuable estates will in effect be taxed twice as in many cases the fee will significantly outweigh the Probate office’s costs of administration.

Blog entry by: Philip Peters.



 
Other items in Blogs
 
Kim Clayden
13th April 2018 Making Tax Digital Seminar Two – St Ives

       Our second MTD seminar was in St Ives at the Slepe Hall Hotel on Thursday 12th April. Which was a much more convivial venue. A smaller group meant more personal conversations with our clients and we were able to give a number of clients the time they needed to fully understand the next steps for…

Read More »

Daniel Coleman
11th April 2018 Making Tax Digital ‘Roadshow’ – Huntingdon

We have begun the first of eight seminars discussing the preparation needed for making tax digital. Our first seminar kicked off in Huntingdon at the Marriott hotel and was a great success. With around 30 people attending we explained to clients what making tax digital was, how it was going to effect them and more…

Read More »

Paul Jefferson
5th April 2018 Reclaiming VAT: Checking the validity of your supplier invoices.

  VAT registered businesses will be aware that they can only reclaim VAT on business purchases if they have a valid VAT invoice.   For supplies over £250, this invoice should disclose: Supplier: sales invoice unique sequential invoice number, name, address and VAT number. Date and tax point, if different Your name and address Description…

Read More »

Scott Butcher
5th April 2018 Deadline Approaching for ATED forms

  If you have a residential property which is worth more than £500,000 and is held in a company then you will be required to complete an Annual Tax on Residential Dwellings (ATED) form. The deadline is fast approaching with all ATED forms for 2018 to 2019 tax year being due for filing by 30th…

Read More »

Vanessa Pearson
5th April 2018 HMRC loses IR35 case

  A contractor in the construction industry, Mark Daniels, has won his appeal against HMRC. In MDCM Ltd v Revenue & Customs, HMRC were defending their decision that a contract between Mr Daniels’ personal service company MDMC Ltd and recruitment agency Solutions, which provided his services to Structure Tone Ltd,  should have been caught by…

Read More »

Richard Alecock
5th April 2018 Top mistakes tax payers make when completing their tax returns.

  Making mistakes on self assessment tax returns however innocent can lead to enquiries, investigations and additional tax, interest and penalties. Below are some of the top mistakes many people make: Forgetting to include income from a previous employment that ended part way through a tax year. Forgetting to include benefits from a previous employment…

Read More »