Inheritance tax spike expected as probate rules change
The prospect of new probate fees could trigger an influx of inheritance tax receipts this year as executors rush to beat the regulatory deadline.
In HMRC's most recent tax statistics published In January 2019 inheritance tax receipts for April to December 2018 were found to be 0.4 per cent higher than in the same period last year.
The current probate system sees a flat fee of £215 paid for all estates of more than £5,000 (or £155 for those applying through a solicitor), but the MOJ said last year it planned to replace this with tiered charges ranging from £300 to £20,000, depending on the value of the estate before inheritance tax.
Many people end up paying inheritance tax unnecessarily on their estates, however that’s not to say when the estate is calculated you can choose not to pay the tax. There are many reliefs that are available to people where you can reduce or remove all together the burden of inheritance tax.
The best place to start –You need to review your will to ensure that as much pre-planning is done.
You can choose to reduce or not pay the bill by pre planning but expert advice is essential in such complex areas to ensure full reliefs are being made.
We have had many years of experience in this field and would be happy to discuss how we may assist you. Call us today on 01473 487611.