The UK Ministry of Justice confirmed that it is to proceed, following a consultation, with government proposals to reform the fee payable for an application for a grant of probate. The regime will move, as of 1 May, from a flat fee to a banded structure where the fees increase in line with the value of the estate, up to a maximum of £20,000.
The current flat fee of £215 will be replaced with a new system of tiered charges. No fee will be payable for estates worth less than £50,000 but the charges will increase rapidly beyond that threshold, as follows:
£300 for estates worth more than £50,000 and up to £300,000
£1,000 for estates worth more than £300,000 and up to £500,000
£4,000 for estates worth more than £500,000 and up to £1 million
£8,000 for estates worth more than £1 million and up to £1.6 million
£12,000 for estates worth more than £1.6 million and up to £2 million
£20,000 for estates worth more than £2 million.
The proposal to link probate fees to the value of the estate was published in February 2016 and attracted overwhelming opposition, especially in view of the government’s subsequent admission to parliament that the Probate Registry was already self-funding on the existing fee structure. Only 63 out of 829 respondents agreed with linking probate fees to the value of the estate and 695 disagreed. Most responses to the consultation considered that the proposed fees were too high, and, because they exceeded cost recovery levels, would effectively constitute a form of taxation.
Justice minister Shailesh Vara said: “These proposals are progressive, with lower value estates lifted out of paying any fee at all and other estates only paying more as the value of estate increases. They are also necessary, making a significant contribution to reducing the deficit and enabling investment which will transform the courts and tribunals service.”