"Reasonable" mourners expenses

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.
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Comments

  • Keep_pedalling
    Keep_pedalling Posts: 20,121 Forumite
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    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
    ferger Posts: 85 Forumite
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    Yes, that's what I thought. OK, that's what I'll do - if they want to see receipts, they can have them!
  • G6JNS
    G6JNS Posts: 563 Forumite
    edited 9 March 2015 at 8:05AM
    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
    SeniorSam Posts: 1,673 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Get the bill made out to 'The Executors of the Late ??????' and it should be OK

    Sam
    I'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.
  • Mojisola
    Mojisola Posts: 35,571 Forumite
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    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.
  • 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
    g6jns_2 Posts: 1,214 Forumite
    edited 9 March 2015 at 7:23PM
    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
    ferger Posts: 85 Forumite
    Eighth Anniversary 10 Posts Combo Breaker
    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
    g6jns_2 Posts: 1,214 Forumite
    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
    comeandgo Posts: 5,892 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Maybe our understanding of the word wake is the problem? I take a wake to mean mourning prior to burial so not allowable?
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