"Many Photos" - Fury over 'sneaky' £6,000 death tax set to hit almost 300,000 families

Ministers were last night accused of sneaking through a stealth ‘death tax’ that will hit grieving families with bills of up to £6,000.

In an alleged abuse of power, a huge hike in probate charges was effectively waved through Parliament after ministers categorised it as a ‘fee’ rather than a tax.

It meant they could avoid full parliamentary scrutiny for the controversial increase, which will see almost 300,000 families a year face larger probate bills from April.

Liberal Democrat leader Sir Vince Cable said last night: ‘This is a clear abuse of executive power: bringing in a tax hike without proper parliamentary scrutiny.’ Labour’s justice spokesman Gloria De Piero said the charges were a ‘tax on grieving families’.

Liberal Democrat leader Sir Vince Cable has slammed the death tax as being an 'abuse of executive power'

Currently, families pay a flat £215 fee for probate, the charge for securing legal control over a deceased person’s estate.

But under the new system, the charge will rise according to the value of the estate. It is estimated 280,000 families a year will have to pay more, with 56,000 facing bills of between £2,500 and £6,000.

The Ministry of Justice is expected to rake in an extra £185 million a year from the charges by 2022/23.

Usually, a tax rise would be introduced in a Parliamentary Bill, which would have to go through a committee stage, after which it would be debated – and then voted on – by both the House of Commons and the Lords.

Because it was described as a ‘fee’, the probate increase required only a change to an obscure type of legislation called a statutory instrument. Yesterday morning, this was approved by the secretive ‘delegated legislation committee’ of MPs, by a narrow vote of nine to eight.

Statutory instruments are usually passed by the Commons ‘on the nod’ within days. It is rare for them to be overturned, and would depend on an MP issuing a formal protest in the chamber.

Critics say the way the hike in probate charges has been quietly pushed through risks creating a ‘dangerous precedent for future tax rises’.

Sir Vince said: ‘The fees themselves have to be paid up front, so the vastly increased sums involved will now see bereaved relatives having to take out loans just to access what has been left to them.

Labour’s justice spokesman Gloria De Piero said the charges were a ‘tax on grieving families’

‘This clearly isn’t defensible, and it would appear ministers are doing all that is possible to avoid defending it in the full glare of the House of Commons chamber.’

The Law Society is campaigning against the change, and has called on MPs to oppose it. Hugo Forshaw, the society’s political adviser, added: ‘Not only is this an unfair way to squeeze money out of grieving and vulnerable families, but these fees are also not fees at all – they are a stealth tax.

‘This deception matters because of an ancient constitutional principle. Since Magna Carta, kings and governments alike have been required to put legislation before Parliament for approval before raising a new tax.’

Mr Forshaw added: ‘If the Government is allowed to get away with such an egregious misuse of its fee-levying powers, it will set a dangerous precedent for future tax rises.’

John O’Connell, of the TaxPayers’ Alliance, said: ‘We condemn this proposed stealth tax on grieving families.’ Families must apply for probate to administer their loved ones’ finances when they die. There is a fixed fee of £215 – or £155 for families who use a solicitor. Probate must typically be granted before families can release any money from an estate – for example by selling a house.

But the Government is now linking the charge to the size of the estate, with the levy ranging from £250 to as much as £6,000 for wealth estimated at more than £2 million. Inheritances of less than £50,000 will be exempt – compared with the current threshold of £5,000.

There is no discount for using a solicitor under the new scheme.

Many people will not have to pay probate when their spouse dies because it is not needed if they share their house and bank accounts.

A ministry spokesman confirmed a vote on the increase would take place only if an MP rises to object. There will be no debate on the measure. She added: ‘Our system will see an additional 25,000 bereaved families pay no probate fees at all each year.

‘These fees are not a tax and they are being fully scrutinised and debated in both Houses.’

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News Photo Fury over 'sneaky' £6,000 death tax set to hit almost 300,000 families
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