Private Client Updates
Increases to Fixed Costs in the Court of Protection from 01 April 2017
Practice Direction B which supplements Part 19 of the Court of Protection Rules 2007 has recently set out the increased fixed costs that may be claimed by Solicitors & Public Authorities acting in COP proceedings and the fixed amounts of remuneration that may be claimed by Solicitors & Public Authorities appointed as Deputy.
The main changes are shown below but please click here for the further details.
Payments on account
These have increased from 20% of the estimated annual management charges for the 1st three quarters of the management year to 25% of the estimated annual charges i.e. up to 75% for the whole year.
Solicitors’ costs in court proceedings
Deputyship application costs up to the date that the court makes an order appointing a Deputy for Property & Affairs are up from £850 plus VAT to £950 plus VAT.
Remuneration of Solicitors appointed as Deputy for Property & Affairs
Annual management fees, payable on the anniversary of the court order
- For the 1st anniversary an amount not exceeding £1670 plus VAT (up from £1500 plus VAT).
- For the 2nd & subsequent years an amount not exceeding £1320 plus VAT (up from £1185 plus VAT).
- Where the net assets of the P are below £16,000, the Professional Deputy for Property/Affairs may take an annual management fee not exceeding 4.5% of the P’s net assets on the anniversary of the court order (no change).
Preparation of a report or account for the OPG
An amount not exceeding £265 plus VAT (up from £235 plus VAT).
Preparation of tax returns
Preparing a basic HMRC tax return on behalf of the P an amount not exceeding £250 plus VAT (up from £235 plus VAT)
Preparing a complex HMRC tax return on behalf of the P an amount not exceeding £600 plus VAT (multiple investment portfolios, one or more rental properties etc). This a new allowance.
DETAILED ASSESSMENT
In cases where fixed costs are not appropriate, professionals may, if preferred, apply to the SCCO for a detailed assessment.
THESE INCREASES WILL APPLY TO ALL MANAGEMENT FEES FOR ANIVERSARIES FALLING ON OR AFTER 1 January 2017 & REPORTS/ACCOUNTS/TAX RETURNS MADE ON OR AFTER 1 April 2017
If you have any questions about this article please call the private client team on 01228 815391.
