Ministry of Justice written question – answered at on 18 April 2017.
To ask the Secretary of State for Justice, what her Department's rationale was for introducing a sliding scale of probate fees based on the worth of an estate.
The Government set out its rationale for reforming the fees for grants of probate in its response to consultation on the fees published on Friday 24 February.
The Government is committed to providing a modern, world-leading justice system which is proportionate and accessible. The best way to protect access to justice is with a properly funded courts and tribunals service.
Fees are necessary to support an effective courts and tribunals system that supports victims and vulnerable people, and is easy for ordinary people to use. In 2015/16, the Government spent around £1.9 billion on our courts and tribunals and recovered only around £700m through fees and other income. We do not believe that the taxpayer should continue to meet all of this cost.
We are getting rid of flat fees and replacing them with a fair, banded, structure related to the value of the estate. This includes raising the fee threshold from £5,000 to £50,000 and lifting an extra 25,000 estates out of fees altogether.
More than half of estates in England and Wales will pay no probate fee and over 90 per cent of estates will pay £1,000 or less. The fees will be implemented on a banded structure, increasing in line with estate values, meaning higher fees are paid by those who can afford to do so. No one will pay more than 1 per cent of the total estate value.
Using the authoritative ONS projections, we have recently improved our estimates of the number of estates in England and Wales.
With this more accurate data, we have produced a refreshed distribution of the estate values table. We have also updated our estimates to take account of HMRC’s most recent data on the distribution of estate values. These minor adjustments to Table 1 (page 11) of the consultation response do not alter the substance of, or rationale for, the proposals on which we consulted, or the Government’s decision to proceed with the changes. I have placed amended versions of the Government response to consultation in the libraries of the Houses.
Value of estate (before inheritance tax) | Proportion of All estates in England and Wales | Proposed Fee |
Up to £50,000 or exempt from requiring a grant of probate | 53% | £0 |
Exceeds £50,000 but does not exceed £300,000 | 25% | £300 |
Exceeds £300,000 but does not exceed £500,000 | 12% | £1,000 |
Exceeds £500,000 but does not exceed £1m | 7% | £4,000 |
Exceeds £1m but does not exceed £1.6m | 1% | £8,000 |
Exceeds £1.6m but does not exceed £2m | 0.3% | £12,000 |
Above £2m | 0.6% | £20,000 |
Yes1 person thinks so
No1 person thinks not
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