New reforms to probate fees have been delayed. What happens in the meantime?
So the 1st April has come and gone, but the reforms to probate fees have not come into force on this date, as originally anticipated.
You can find more information on the probate fee hike in my colleague Louise Scholes’ blog here. Essentially, the draft Non-Contentious Probate Fees Order 2018 will give effect to a banded fee structure for applications for grants of representation in place of the flat fee, which is currently £215, or £155 for applications made through a solicitor.
The government needs to schedule an approval motion in the House of Commons. If any MP objects, it will be debated and could end up being voted on by the whole House. If no MPs oppose the motion, the order will be made and the new fees would come into force 21 days thereafter.
The government has indicated that it intends to bring the changes before the House of Commons as soon as parliamentary scheduling allows it to, but at the time of writing, no date has yet been set.
So what happens in the meantime? HMRC confirmed on the 27th March that a temporary concession to the usual probate application process will apply, whilst the probate fees issue is ongoing.
In order to obtain probate, the person dealing with the estate must first submit an Inheritance Tax account to HMRC. Probate registries will not normally accept applications for probate until HMRC has produced a ‘receipt’ confirming that it has processed the Inheritance Tax account.
However, the temporary measure will see probate registries accepting applications for probate before the Inheritance Tax account has been processed by HMRC. Such applications must include a note to say that the appropriate Inheritance Tax forms will follow.
