'Death tax' probate fees are unlawful, rules panel of experts

Rises in probate fees of up to £20,000 dubbed “death taxes” by critics, have been branded unlawful by a panel of parliamentary experts and could be scrapped.

Lord Chancellor Liz Truss has been accused of “overstepping her powers” following the announcement of plans to raise fees from £155 to as much as £20,000 for larger estates.

A report by a panel of parliamentary experts claimed the changes could breach constitutional principle and should be taken before both the House of Commons and House of Lords, the Times reported.

The fees – due to be introduced next month in a bid to raise £300 million for the courts and tribunal service – could be delayed or eventually scrapped.

If introduced they would replace a current flat rate of charges between £155 and £215.

Currently there are no fees on estates of up to £50,000 but those on estates worth between £1 million and £1.6 million would be £8,000.

Estates worth between £1.6 million and £2 million would face fees of £12,000 and estates above £2 million would be forced to pay fees of £20,000.

In a report, the committee asked whether "the lord chancellor may use a power to prescribe non-contentious probate fees for the purpose of funding services [the courts] which executors do not seek to use".

Lord Beecham, Labour's justice spokesman in the Lords, told the Times: "This is to all intents and purposes a death tax.

“Labour peers have made it clear that we will challenge the order, prompting its withdrawal from the Lords this week. The ball is now in the government's court."

A spokesman for the Ministry of Justice said: "Our plans to introduce new probate fees remain unchanged.

“We will introduce a fairer system, meaning over half of estates pay nothing and over 90 per cent pay less than £1,000. They will be considered in parliament after Easter, and come into force as soon as possible."