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Insights // 27 January 2022

Important Changes to Estate Administration and Inheritance Tax from January 2022

Solicitor Emily Riesco, in our leading Wills, Probate, Tax & Trusts team, explains the Inheritance Tax and probate related changes that took effect on 1 January 2022.

Changes to reporting to HMRC

For the estates of those who die after 1 January 2022 the Inheritance Tax (“IHT”) reporting requirements have been simplified.

Under current legislation if an estate is categorised as being low value or meets the excepted estates criteria then a short Inheritance Tax form (IHT205) is required. HMRC have simplified the process by updated their rules on how estates are categorised so that there are fewer instances where personal representatives will need to complete the IHT205. It is anticipated that over 90% of non-taxpaying estates each year will no longer have to submit a tax return to HMRC.

For deaths before 1 January 2022 the previous regulations still apply.

It is important to remember that although HMRC may not require a tax return to be submitted, a personal representative may still need to apply for a Grant of Probate from the court and provide information about the value of the deceased’s estate when doing so.

Probate fee increase

From 26 January 2022 the court fee that you pay when applying for a Grant of Probate is increasing.

At present the court fee to apply for a Grant of Probate is £155 for a professional application and £215 for a personal application. From the end of January the fee will increase to £273 for anyone applying and the same fee applies to all estates, regardless of their size.

This change comes as a result of the Ministry of Justice’s attempts to address the financial deficit within the court service. At present they report that the probate service operates at a loss, and that the fee hike will raise between £23m and £25m annually.

There are no changes for those applying for an estate of less than £5,000 and there will remain no fee to pay.

For further information or legal advice, please contact or call 0118 951 6800. 

This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.

Emily Riesco

Emily Riesco

Senior Solicitor, Wills, Probate, Tax & Trusts

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