Using two funeral costs to reduce Inheritance Tax Bill

SomeJavaMonkey

Hi,

Two years ago I sadly lost my Mum to cancer and more recently I also lost my Dad. As you can imagine this is awful but now HMRC want their tax (if applicable) and I need to sort this out.

I have read the HMRC guides several times and I know that I can offset any inheritance tax due using expenses such as funeral and wake costs. I am currently using my Dad's funeral and wake costs in my calculations. Is it possible to also add my Mum's funeral and wake costs as it was not used when my Dad inherited my Mum's estate?

Thanks in advance.

Keep_pedalling

No you can't use your mums funeral expenses, as they have already reduced the amount of her estate passed to your father. You can certainly use his, but they must be reasonable, so splashing £10k on drinks for a wake is not allowed.

Are you sure your father's estate is even in IHT territory? What was the date of his death, and what would you estimate the value of his estate to be?

Edit - were they married?

getmore4less

The obvious first question do you understand transferable nil rate band?

Keep_pedalling

getmore4less wrote: »

The obvious first question do you understand transferable nil rate band?

And the second obvious question do you understand the main residence nil rate band (also transferable)

https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band

The two combined mean estates up to £850k will be tax free for second deaths occurring in this financial year.

SomeJavaMonkey

Thank you for the replies.

I understand the £850k limit and bands thank you. My parents were married. Very simple estate.

My question was purely if I could use my Mum's funeral expenses as I don't believe that they were used when my Dad inherited her (small) estate and my Dad said I should be able to use both funerals when he passed.

Thanks again.

Ziggazee

Very simple answer.


No you can't