Update on probate court fees and changes to inheritance tax
Increase in court fees for grants of probate
You may be aware that due to the government calling a snap election, the proposed increases have been put on hold for the time being.
Record Inheritance Tax bills and how the new rules may affect you
The tax year 2015/16 saw a huge increase in the revenue generated by inheritance tax for the Treasury. The total amount raised was £4.7 billion, an increase of 22% over the previous year. House price rises, especially in London and the South East, have been the main reason for the increase as well as increases in the value of other assets eg shares.
In addition, the level of the nil rate band (the threshold over which inheritance tax is payable ) has been the same for the last 8 years, currently £325,000.
In April this year, new tax rules came into effect that will reduce some of the inheritance tax payable and we have reported on this previously: the residential nil rate band. However, the full amount of this allowance does not kick in until 2021 and certain conditions must be met to qualify for it.
Careful estate planning to minimise the tax payable on death is therefore advisable. At Catchpole Law we specialise in giving advice of this nature. There are steps that can be taken quite legitimately to minimise the amount of tax payable ensuring that as much as possible can be passed on to the family instead of the Treasury.