New death tax (Probate fees)

[unclebulgaria67]

http://www.telegraph.co.uk/finance/personalfinance/tax/12164010/Grieving-families-could-be-forced-to-pay-a-new-death-tax.html

 

I can remember when the Tories complained really loudly with billboard advertising when Labour propsed some form of death tax.

 

Funny how times change.

[Mr.P]

Ah, but it isn't a new tax, just a new fee structure paid to the courts when applying for probate. For many, it is going to be a pretty hefty increase from the current £215 (or £155 if done through a solicitor).

 

(*) Under the new proposals, the current threshold of £5,000 will be raised to £50,000. The fees paid will be banded depending on the value of the estate as follows:

- £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 £2million

 

Like the spare room subsidy, in the weasel words of the Tories, it is not a tax. But having messed around with Inheritance Tax, the Treasury need to look at other ways of clawing back the lost tax revenue.

 

*) http://www.thisismoney.co.uk/money/news/article-3453232/Relatives-estates-worth-300-000-set-spiralling-probate-fees-wealthiest-facing-920-hike.html

[citizenB]

http://www.consumeractiongroup.co.uk/forum/showthread.php?460222-Government-plans-huge-rises-in-probate-fees-charged-after-death%283-Viewing%29-nbsp

 

I have moved this into HMRC - Is it the correct forum ?

[Mr.P]

I have moved this into HMRC - Is it the correct forum ?

 

For taxation issues, yes. But for court fees, General Legal might be more appropriate. Then again, the excessive hike and sliding scale is bound to provoke a range of comments.

 

I'm surprised the government hasn't cottoned on to applying landfill taxes to burials as a way of raising even more revenue from the dead.

[citizenB]

General legal it is then. Perhaps people can temper their comments !!

[Ethel Street]

I will temper my sense of outrage about this in the interests of politeness, since after all it costs the court system much the same to grant probate on a Will of £1m as it does on a Will of £100k, not 10x as much. As the proposed cost is clearly not related to the cost of actually using the service it seems justified to call it a tax, whatever the weasely politicians want to call it. The minister admits that this is "a critical contribution to cutting the deficit" and no doubt has been identified as a tax which is cheap to collect and almost impossible to avoid - the politicians' favourite sort of tax. Having just gone through probate myself I wonder whether this increased charge will improve efficiency? I think I know the answer to that....

 

Something not mentioned is how Executors are supposed to pay this, where they will find the money from? Ultimately it will be paid from the Estate but even if the deceased had the necessary amount of cash in their bank account this often is available to the Executor until after Probate has been granted. Practice varies but many banks will only release funds for funeral costs and IHT prior to Probate. Fronting up £217 is something most Executors could do, fronting up £4k or £8k is another matter.

[labrat]

Is it odd that we could save 25 million if all mp pay was cut to 40,000 and expenses was cut by 5000 per mp?

[Ethel Street]

"The Ministry of Justice insisted that ... almost six in 10 would pay no fee for probate at all."

 

How can it be true that 60% of estates will be below £50,000 when according to official statistics 65% of population are owner occupiers?

[citizenB]

That other 5% will have already had to sell prior to death in order to pay for their care needs, Ethel !!

[citizenB]

 

I'm surprised the government hasn't cottoned on to applying landfill taxes to burials as a way of raising even more revenue from the dead.

 

Oh no, please don't give them any more ideas !!

[Brummagem Flash]

We have nonagenarian parents with relatively small income but a larger house.

Dad was an RAF Sergeant; serving as compass setter for a flight Polish Squadron, during the latter half of the War. But he''s recently gone into hospital, with bowel and other medical problems; and is now quite unlikely to return home.

Mum was a young teenager when she helped London children, being evacuated away from the Blitz; and later taught at Junior Schools until she retired at 65.

She recently endured months of daily cleaning up after Dad; and an old, incontinent dog. She now has to rely on others for transport for hospital visits; as there is no suitable public transport from their village.

This latest TORY TAX on the elderly is a DISGRACE; and will have quite the OPPOSITE effect to the PROMISED preservation of assets, when someone needs to be taken into care.

 

ALMOST TWO-THIRDS OF US VOTED FOR POLICIES OTHER THAN THE TORY SERVICE CUTS AND TAX HIKES;

BUT WE MUST ALL SUFFER A HEARTLESS TORY DICTATORSHIP FOR FIVE YEARS.

Then we'll be offered the chance to revert to the INCOMPETENT LABOURITE FOOLS!

HOW IS THAT DEMOCRACY? GIVE US A BALANCED COALITION ANY DAY!

But we'd need Proportional Representation to get rational governance: like the Swedes, Danish, Germans, or Dutch, etcetera.

And we won't get that until the LibDems are strong enough to bring it for us: so I'll keep on voting LD, and hoping you all do too.