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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Funeral expenses (box 81): introduction and general approach

The deduction of reasonable funeral expenses is specifically allowed under IHTA84/S172.

Funeral expenses are included in box 81 of the IHT400. Taxpayers are asked to provide a breakdown of the expenses.

You should generally accept the deduction claimed without enquiry unless the expenses seem to be

  • wholly unreasonable or large in relation to the estate as a whole, or
  • inconsistent with information on the file.

If this is the case you should ask for an itemised breakdown of the expenses if you do not already have one. You should seek advice immediately if the taxpayers object to your proposal to disallow any claimed funeral expense.

If the taxpayers do not claim funeral expenses you may accept that no deduction is due.

Although a death grant may be payable under the National Insurance Acts, you should not on that account restrict the deduction for funeral expenses allowed by IHTA84/S172.

The index to Section 10 (IHTM10000) will give details of where to find instructions on how to deal with specific funeral related expenses.