Changes to Probate Fees
Probate fees are due to rise in May 2017. Following a consultation in 2016, significant increases in the fees payable for a grant of probate are due in May this year. Currently the system requires a flat fee to be paid, which is, if carried out through a solicitor, £155 and if not, the fee is £215. This will change in May to a banded fee, relative to the value of assets and the estate. A table below shows the potential costs and significant potential increase, which could have implications on families, assets held and businesses involved within the probate. Value of Estate (before...
Read MoreNet tightens on Inheritance Tax relief for Furnished Holiday Lets
HMRC have recently won a tribunal decision that confirms that inheritance tax relief will only be available on furnished holiday lets (FHL) in exceptional circumstances. Simon Dixon Smith of Land Partners comments ‘the newly released case of Green v HMRC confirms that the majority of holiday lettings businesses will not attract inheritance tax relief. This will be costly to the families of holiday cottage owners’. It is estimated that there are over 75,000 units of FHL in the UK. Many of these will have been purchased for the primary benefit of the owners with holiday lets offered as a way...
Read MoreBPR on commercial property
The Trustees of David Zetland Settlement v HMRC (2013) In a First Tier Tribunal case reported on the 1st May 2013 the question of when a business consists of ‘wholly or mainly making or holding investments’ (IHTA 1984 s105(3)) was considered. A business that falls into this category will not be ‘relevant business property’ eligible for Business Property Relief (BPR) from Inheritance Tax. The David Zetland Settlement owned, amongst other things, the head lease of a 140,000 sqft commercial building in Scrutton Street, EC2. The building was divided into 53 separate units. These were let as...
Read MoreLandowners borrowing an inheritance tax advantage
Please see the attached article on the affect on landowners of the changes proposed in the Finance (no.2) Bill 2013 to the treatment of liabilities on assets within a deceased person’s estate. This may result in increased IHT being payable as a result of reductions in claims for Agricultural Property Relief (APR) and Business Property Relief (BPR). Liabilities and IHT article
Read More
