"Reasonable" mourners expenses

ferger

Hi chaps

The guidance noes for the IHT400 say:

"You may deduct funeral costs and reasonable mourning expenses.

• refreshments provided for the mourners after the service"

Anyone know what view HMRC take of reasonable? My Dad's funeral had 100+ attendees and we ran up a bill at the wake - food and bar - of about £1300. If this is acceptable, fine - but I don't want to invite an argument about it.

Keep_pedalling

I think they do not specify a specific limit, as everyone would probably then claim that limit. Providing you have a receipt from the venue, I would just put that cost in, if the amount is queried than you have the paperwork to back it up and £13 a head does not seen unreasonable to me.

ferger

Yes, that's what I thought. OK, that's what I'll do - if they want to see receipts, they can have them!

G6JNS

ferger wrote: »

Hi chaps

The guidance noes for the IHT400 say:

"You may deduct funeral costs and reasonable mourning expenses.

• refreshments provided for the mourners after the service"

Anyone know what view HMRC take of reasonable? My Dad's funeral had 100+ attendees and we ran up a bill at the wake - food and bar - of about £1300. If this is acceptable, fine - but I don't want to invite an argument about it.

You would do well to ask them. It really depends on how they define mourners. It may just refer to the immediate family. The cost of the wake may not be allowable. If the estate is not going to attract IHT then it is academic.

SeniorSam

Get the bill made out to 'The Executors of the Late ??????' and it should be OK

Sam

Mojisola

ferger wrote: »

My Dad's funeral had 100+ attendees and we ran up a bill at the wake - food and bar - of about £1300. If this is acceptable, fine - but I don't want to invite an argument about it.

We spent a slightly lower amount on Dad's wake and it went through without any queries.

troubleinparadise

There is also an element of the costs being appropriate for the estate, so that it all ties in together.

An example I heard of was of the funeral flowers for a Lady X costing about £6000 - it was more like £300 for my Mum's! I rather suspect the catering for the titled lady's funeral was in the several £000's also - but affordable and appropriate in her circumstances, taking the mickey for the average person.

g6jns_2

troubleinparadise wrote: »

There is also an element of the costs being appropriate for the estate, so that it all ties in together.

An example I heard of was of the funeral flowers for a Lady X costing about £6000 - it was more like £300 for my Mum's! I rather suspect the catering for the titled lady's funeral was in the several £000's also - but affordable and appropriate in her circumstances, taking the mickey for the average person.

Strictly speaking a wake is not part of the funeral. I really can't see HMR&C allowing it if they happen to scrutinise things closely as they do for a percentage of estates.

ferger

Well, the guidance notes for the IHT400 quite specifically reference as allowable:

"refreshments provided for the mourners after the service"

So it's hard to see that only costs directly attributable to the funeral itself will be entertained.

And the estate is over the IHT threshold, so it does matter!

g6jns_2

ferger wrote: »

Well, the guidance notes for the IHT400 quite specifically reference as allowable:

"refreshments provided for the mourners after the service"

So it's hard to see that only costs directly attributable to the funeral itself will be entertained.

And the estate is over the IHT threshold, so it does matter!

Noted. Thank you for enlightening me.

comeandgo

Maybe our understanding of the word wake is the problem? I take a wake to mean mourning prior to burial so not allowable?