The Isle of Man Government has introduced a change to probate charges which reduce fees to a maximum of £250 for non-resident applications where the only asset is a life assurance policy.
In 2013 the Isle of Man had increased all probate fees from a maximum £650 to £7,500 for estates of over £1 million. More recently the maximum increased to £8,000 with no distinction between resident and non-resident. This had the potential to make the jurisdiction uncompetitive when compared against others, including the UK, where there is currently a single cost of £155 for estates above £5,000, and Ireland, where a fee of €606 is payable on the first €300,000, increasing by €24 for every additional €31,250. The new probate fees took effect from 1 May 2016.
Sean Christian, Executive Director for Canada Life’s international businesses, said:
“This is a very positive message for our UK policyholders and our status as an International financial centre where many non-domiciled investors hold assets. We were concerned at the recent hike in probate costs and are very pleased that the Government has listened to our concerns and has introduced the new rates. This move underlines the competitiveness of the Isle of Man as a stable, low cost jurisdiction to do business and is a glowing example of the unique partnership that exists between Isle of Man businesses and Government to ensure the Island remains an efficient and effective place to do business.”
Canada Life International held a number of discussions with the Manx Government to raise their concerns on the level of cost increase. The concerns focused on the potential impact this could have on future new business levels to Manx insurers, in a market where policyholders have a choice of jurisdiction to invest in an International bond. As a prominent provider serving the UK market through its International businesses in the Isle of Man and Dublin, Canada Life International is well placed to represent the interests of non-domiciled investors.
Pre 1 May 2016 |
|
From 1 May 2016 |
||
Net size of estate |
Fee |
Net size of estate |
Fee |
|
Does not exceed £10,000 |
£27 |
Does not exceed £10,000 |
£27 |
|
Exceeds £10,000 but not £50,000 |
£160 |
Exceeds £10,000 but not £50,000 |
£160 |
|
Exceeds £50,00 but not £125,000 |
£470 |
Exceeds £50,000 |
£250 |
|
Exceeds £250,000 but not £500,000 |
£1,000 |
|||
Exceeds £500,000 but not £1,000,000 |
£2,000 |
|||
Exceeds £500,000 but not £1,000,000 |
£4,000 |
|||
Exceeds £1,000,000 |
£8,000 |
*where the only asset is a policy of life assurance which has been effected with any insurance company in the Isle of Man by a person who has died domiciled elsewhere than in the Isle of Man
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