Important Financial Changes for Probate Applications
- Wills, Trusts & Probate
- 11th Jan 2022
The start of 2022 brings two new important changes to the financial side of Probate applications for both solicitors and lay applicants.
By Stephen Attree
MLP Law
The start of 2022 brings two new important changes to the financial side of Probate applications for both solicitors and lay applicants.
Firstly, on 1 January 2022 the Inheritance Tax (Delivery of Accounts) (Excepted Estates) (Amendment) Regulations 2020 came into force. The regulations change the reporting requirements for excepted estates, these are estates below the current Inheritance Tax (IHT) threshold of £325,000.
This regulation confirms that administrators for a person domiciled in the UK with an excepted estate, who dies on or after 1 January 2022, no longer need to complete the form IHT205 or IHT 217 (where applicable).
Guidance on identifying excepted estates has been published on GOV.UK. The Probate Registry have requested that for deaths occurring after 1 January 2022, that an application is not submitted until after 12 January 2022 in order for the current computer system to be updated.
From 12 January 2022, if you are acting for an excepted estate where the death occurred on or after 1st January 2022, you no longer need to complete and return the IHT205 (and IHT217 if applicable) form to HMCTS as part your Probate application. Instead, the Probate Registry will ask you to confirm the net value of the estate for IHT purposes, the gross value of the estate for IHT purposes and the net qualifying value of the estate.
If applicants are claiming the nil rate band (if the deceased had a late spouse or civil partner and the net qualifying value of the estate was between £325,000 and £650,000). The Probate Registry will continue to request the net value of the estate for probate purposes and the gross value of the estate for probate purposes. For deaths that occurred before 1 January 2022 then applicants should continue to use forms IHT 205 (and IHT217 if required) as before, and these will be processed as usual.
The second major change being introduced is that the Probate Registry application fee for Grants of Probate and Letters of Administration will increase from £155 for solicitor’s applications and £215 for personal applications, to a flat rate of £273 for both professional and personal applications. The government has said the rationale is to equalise the application fee for professional and person applications. This fee increase takes effect from 26 January 2022.
If you or your family require any advice or assistance to deal with applications to the Probate Registry and the related Inheritance Tax accounting requirements, then our friendly team of experienced lawyers can guide you through the legal requirements smoothly and swiftly. Call our Wills, Trusts and probate team on 0161 926 9969 or alternatively email WTP@mlplaw.co.uk to discuss your Probate questions.
Firstly, on 1 January 2022 the Inheritance Tax (Delivery of Accounts) (Excepted Estates) (Amendment) Regulations 2020 came into force. The regulations change the reporting requirements for excepted estates, these are estates below the current Inheritance Tax (IHT) threshold of £325,000.
This regulation confirms that administrators for a person domiciled in the UK with an excepted estate, who dies on or after 1 January 2022, no longer need to complete the form IHT205 or IHT 217 (where applicable).
Guidance on identifying excepted estates has been published on GOV.UK. The Probate Registry have requested that for deaths occurring after 1 January 2022, that an application is not submitted until after 12 January 2022 in order for the current computer system to be updated.
From 12 January 2022, if you are acting for an excepted estate where the death occurred on or after 1st January 2022, you no longer need to complete and return the IHT205 (and IHT217 if applicable) form to HMCTS as part your Probate application. Instead, the Probate Registry will ask you to confirm the net value of the estate for IHT purposes, the gross value of the estate for IHT purposes and the net qualifying value of the estate.
If applicants are claiming the nil rate band (if the deceased had a late spouse or civil partner and the net qualifying value of the estate was between £325,000 and £650,000). The Probate Registry will continue to request the net value of the estate for probate purposes and the gross value of the estate for probate purposes. For deaths that occurred before 1 January 2022 then applicants should continue to use forms IHT 205 (and IHT217 if required) as before, and these will be processed as usual.
The second major change being introduced is that the Probate Registry application fee for Grants of Probate and Letters of Administration will increase from £155 for solicitor’s applications and £215 for personal applications, to a flat rate of £273 for both professional and personal applications. The government has said the rationale is to equalise the application fee for professional and person applications. This fee increase takes effect from 26 January 2022.
If you or your family require any advice or assistance to deal with applications to the Probate Registry and the related Inheritance Tax accounting requirements, then our friendly team of experienced lawyers can guide you through the legal requirements smoothly and swiftly. Call our Wills, Trusts and probate team on 0161 926 9969 or alternatively email WTP@mlplaw.co.uk to discuss your Probate questions.
About the expert
Stephen Attree
Managing Partner
Stephen is the Owner of MLP Law and leads our Commercial, IP and Dispute Resolution teams which provide advice on all aspects of the law relating to mergers, acquisitions, financing, re-structuring, complex commercial contracts, standard trading terms, share options, shareholder and partnership agreements, commercial dispute resolution, joint venture and partnering arrangements, IT and Technology law, Intellectual Property, EU and competition law, Brexit and GDPR.
Interested in working with Stephen?
Let’s start by getting to know you and your business - either on the phone or in person. Complete the form below and we’ll be in touch shortly.