The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note provides an overview of the VAT treatment of services that are provided in connection with the burial or cremation of human remains.
The following services are exempt from VAT:
the disposal of the remains of the dead
making arrangements connected with the disposal of the dead
services of one undertaker to another in connection with a specific funeral or cremation
VATA 1994, s 31; VATA 1994, Sch 9, Group 8, items 1 and 2; VBURC1000; 2006/112/EC, Article 371, Annex X, Part B(4); De Voil Indirect Tax Service V4.151; HMRC Notice 701/32
The VAT exemption only applies to the disposal of human remains. Disposal includes, burial, cremation or disposal at sea. This was confirmed in the tribunal case UFD Ltd.
The burial or cremation of an animal is liable to VAT at the standard rate.
The exemption under VATA 1994, Sch 9, Group 1 (land) applies to the provision of grave space and the right to place an urn in a niche, etc.
If the organisation provides a ‘funeral package’, the following goods / services will be exempt from VAT, providing the overall package includes disposing of the remains of the deceased person:
coffin cover / fittings
casket, scatter tube or urn
digging and grave preparation
transporting the deceased person to the burial or cremation ground
shroud / robe
using the chapel of rest
transportation of the mourners
tolling the bell and music at the service
If the organisation provides the
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Liability of the personal representativesAfter a person’s death, the property of the deceased is vested in the personal representatives (PRs) to enable them to manage and distribute the estate in accordance with the Will or the terms of intestacy. See the Personal representatives guidance note.The
Why capital losses are importantCapital losses are usually set against the capital gains that arise in the same year as the loss, reducing the total taxable gains for that year. Losses not used in this fashion are normally carried forward to be set against the next available gains.However, in
The married couple’s allowance (MCA) is only available if one of the two spouses or civil partners was born before 6 April 1935. This means that one member of the couple must be at least 87 years old on 5 April 2022 to qualify for an allowance in the 2021/22 tax year.There is a distinction in the
If the self assessment tax return shows that a repayment is due, the taxpayer can claim a repayment or leave it as a credit on their statement of account.The quickest and safest method is for HMRC to make the payment direct to the taxpayer’s bank or building society account and so they are asked to
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.