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'TAX HITS BRITS'

Brits face new ‘death tax’ of up to £6,000 with plans to increase probate fees

The Ministry of Justice revealed it will introduce a sliding scale of fees to distribute a bereaved individual’s estate

The MoJ will press ahead with a 'death tax' for distributing the estate of the recently deceased

BRITS face a new ‘Death Tax’ of up to £6,000 as Ministers press ahead with radical plans to dramatically increase probate fees.

The Ministry of Justice last night revealed it would be introducing a sliding scale of eye-watering fees to distribute a bereaved individual’s estate.

 The MoJ will press ahead with a 'death tax' for distributing the estate of the recently deceased
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The MoJ will press ahead with a 'death tax' for distributing the estate of the recently deceasedCredit: Alamy

Families will face a £250 charge on estates valued at between £50,000-to-£300,000, all the way through to £6,000 for those estates worth above £2 million.

The MoJ dropped plans for a top rate of £20,000 after a furious backlash in April last year.

But the ‘tax’ will still raise £145 million a year from 2019-2020 – rising to £185 million from 2022-2023. The MoJ insisted the move was required to help raise money to run the UK’s ageing courts.

But former Lib Dem Pensions Minister Steve Webb accused the Government of having the wrong priorities. Currently Brits are charged a set fee of £215.

 Lib Dem Pensions Minister Steve Webb said the 'tax' was an example of a 'strange set of priorities'
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Lib Dem Pensions Minister Steve Webb said the 'tax' was an example of a 'strange set of priorities'Credit: Getty Images - Getty

Mr Webb stormed: “Last week the Chancellor appeared to have lots of spare cash for everything from potholes to public toilets.

“But now we know he couldn’t find the money to scrap a tax hike on the recently bereaved. This seems like a strange set of priorities.”

Rachel Griffin, tax and financial planning expert at consultancy Quilter, said: “People, particularly those at the top end, will be paying disproportionately for the administrative work involving probate.

“It’s hard not see this has a stealth tax on those who already pay inheritance tax.”

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