You are here: Home - Retirement - Retirement planning - News -

General Election call stalls death tax hike

Written by: Paloma Kubiak
The imminent hike to probate fees has been stalled after Prime Minister Theresa May called a snap General Election in June.

The unpopular new ‘death tax’ charging structure was due to come into force from May, requiring some bereaved families to shell out as much as £20,000 to deal with their loved one’s estate. This was a huge leap from the current flat rate of £215 or £155 if using a solicitor.

However, the Ministry of Justice has confirmed that as the Prime Minister Theresa May has called for a General Election to take place on 8 June, there is insufficient time to pass the legislation before polling day.

Instead it will be temporarily shelved where it will be left to the next government to decide whether the hike will continue.

Tim Venner, head of business development – financial planning at Charles Stanley, said: “We welcome the government’s decision to postpone their proposals to introduce increased probate fees and would welcome the government dropping their proposals all together. The increased fees are nothing more than a wealth tax for the bereaved and are disguised as fees.”

Tom Lawrence, director in the estates team at Howes Percival, said, “The news will come as welcome relief for many and certainly now removes the recent pressure placed on a number of grieving families to try and obtain Probate more quickly, to secure the current lower application fees. I would expect the outcome of the general election to have a significant bearing as to when the proposals receive attention once again.”

The probate fee hike would have seen the government scrapping the flat fee system and replacing it with a tiered structure which will increase in line with the value of the estate, up to a maximum of £20,000.

It also planned to raise the fee threshold from £5,000 to £50,000. When the new rules were announced in March, the government said raising the zero-fee band to £50,000 would lift 25,000 estates out of paying any fee – 57% of all estates.

The table below shows the probate fee levels which were due to come into effect in May:YM EstateValue

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Just how safe are contactless cards?

Contactless cards have soared in popularity but security is still a major concern for many consumers. We answe...

Govt will have to justify planned increase to state pension age

The government will have to justify proposed changes to raise the state pension age, which could see millennia...

Petrol stations overcharging drivers by at least £2.50 a tank

UK drivers are being “fleeced” at the pumps with petrol stations overcharging by at least £2.50 per fill up, a...

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week. Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
house prices
Over 40 first-time buyer? The options explained

With soaring house prices, rising monthly rents and increasing pulls on earnings, it’s taking people many more years to get...