For deaths on and after 1 January 2022 there are relaxed reporting requirements for inheritance tax (IHT) purposes, as previously announced in October 2021.
HM Revenue & Customs (HMRC) has changed the reporting limits for estates needing to provide a full IHT report on form IHT400.
This should exempt many estates which can now use the more simple IHT205 declaration.
Personal representatives administering death estates in England and Wales, Scotland and Northern Ireland will benefit from the changes..
It will also have a positive impact on non-taxpaying excepted estates by simplifying the information to be provided to HMRC.
The changes include:
On 26 January 2022, probate application fees in England and Wales will increase to £273 for both professional and personal applications.
The impact of the increase was considered in a House of Commons Library report.
Currently, where an estate is valued at more than £5,000, the fee is £155 for a probate practitioner, or £215 for a personal application.
Back in 2018 the government had proposed a banded fee structure based on the size of estate, but this was seen as a form of taxation and later dropped. Instead, probate fees continue to reflect actual court costs.
If you would like to discuss inheritance tax planning or how we can help you with administering probate, please contact a member of our Estate Planning & Probate team.
You can also find more information on our Probate Services page.