Many view this introduction as a ‘back-door’ tax, which is to stress the probable superfluity of the fee and the fact that it does not bear any relation to the actual cost of probate. Indeed, the Joint Committee on Statutory Instruments has now published its full report which includes the following conclusion:
The Committee draws the special attention of both Houses to this draft Order on the grounds that, if it is approved and made, there will be a doubt whether it is intra vires, and that it would in any event make an unexpected use of the power conferred by the enabling Act.
This was the same conclusion reached by them last year when similar proposals were put forward in 2017 so it will be interesting to see whether the government are successful in the coming months.
If you would like professional advice as to how to navigate this new taxation, or how your estate could be most effectively structured, please do contact us on 01903 231545 or email email@example.com.
Head of Estates