A proposal to dramatically increase probate fees has been dropped after months of awaiting parliamentary approval.
The increased charges would have meant that instead of charging the current fixed fee of £215 for all estates, the fee would change depending on the value of the deceased’s estate before Inheritance Tax.
The tiered fees, dubbed a ‘death tax’, would have started from £250 and could have increased by up to £6,000.
Additionally, the current estate value threshold would have been raised from £5,000 to £50,000 which would have meant that every year approximately 25,000 estates could have avoided probate fees.
The new charges were intended to generate £185m a year to fund improvements to the court system, but critics argued that the figures did not reflect the true administration costs.
The government was also accused of sneaking the measure through parliament without a debate or vote by calling them ‘fees’.
Speaking to The Daily Mail, Justice Secretary Robert Buckland confirmed the new fee structure had been abolished, saying: “I have listened very carefully to the strong views aired on proposed new probate fees.
“While fees are necessary to properly fund our world-leading courts system, they must be fair and proportionate. We will withdraw these proposals, and keep the current system while we take a closer look at these court fees as part of our annual wider review.”
The proposal was put forward in November 2018 by the then prime minister Theresa May.
