The Probate sector suffered a vast detrimental impact in 2020 as a result of Covid-19 and the increased death rates and pressure on HM Probate Registry (who were also in the process of incrementally changing their processes) saw huge backlogs for the issue of Grants of Probate and significant delays to estate administration.
The good news from the 2021 Budget announcement is that there will be no imminent changes to the current Inheritance Tax allowances until at least 2026. Pensions Lifetime Allowance will also be frozen up to tax year 2025/26. Pension rules are also set to be changed to allow more flexibility for investors. Additionally, there have been no proposed changes to rates for Capital Gains Tax. This news comes as a somewhat pleasant surprise when practitioners were perhaps expecting the repercussions of the government’s £355 billion pandemic bill to be offset by higher rates of taxation in these areas.
It is hoped that the relief afforded to the probate sector from the 2021 Budget will allow the sector to sufficiently recover from the impacts of Covid-19 at a faster rate and resume normal practice sooner than expected.
If you require any legal advice or assistance in respect of any probate matter then please contact a member of our dedicated team who will be happy to assist.