A coup[le of times in the last 12 months, one of my younger colleagues has questioned things that I always understood to be true. I welcome that, of course, because people using their brains can’t be a bad thing, but it leaves me wondering why I was told ”that”. Could just be a gender-neutral version of an old wives tale, of course.
This time it is deducting the cost of press notices about the funeral, and she has suggested this is an admin expense, not a reasonable mourning cost, citing the silence of the IHT manual as below. I know it is guidance, not statute, of course.
I’m concerned that we get our tax declarations right above all, but if anyone can justify the views of my long retired former colleagues, I’d be very interested to hear it.
Hi Terry
I have always treated these as part of the funeral expenses themselves, particularly as they are usually [almost invariably in my experience] placed by the undertaker and included in his funeral account. Perhaps your colleague is thinking of s27 notices, which I agree should be an administrative expense and non-deductible for IHT?
Personally I have claimed mourning expenses only in certain estates - in particular [and similarly to you, following the practice of my first firm post-qualification] where particular religious custom was involved.
I agree with Kevin. I have always treated newspaper notices about a funeral as part of the funeral expenses and, as Kevin said, they are usually arranged by the undertaker and included in the funeral bill. If the notices have been arranged by the family, I include them as a separate item under funeral expenses.
I think that Terry’s junior colleague might not understand the difference between funeral expenses and mourning expenses. A newspaper notice is not a mourning expense.
HMRC’s guidance on completing IHT400 states:
81 Funeral expenses
You may deduct funeral costs and reasonable mourning expenses. You may also deduct the cost of a headstone or tombstone marking the site of the deceased’s grave.
These expenses may also include a reasonable amount to cover the cost of:
• flowers
• refreshments provided for the mourners after the service
• necessary expenses incurred by the executor or administrator in arranging the funeral
Use the space provided to give details of other costs that are
being deducted.
I concur that the cost of funeral notices is 'a necessary expense incurred by the executor in arranging the funeral’
