Rest In Peace

UK- Is the money spent on funeral arrangements taxable to the estate?

(when someone dies) Does someone get a certain amount tax free to spend on funeral arrangements? Or is any money spent on funeral arrangements tax free? If any amount is tax free, would money spent making your ashes into a diamond be tax free too? Or would the value of the diamond be taxed? (though i am not sure a diamond made of ash is particularly valuable on the going market as no one else would really want it?) Yeah, another fun Saturday question... er, sorry! fengirl, what if the diamond is not sold? um i meant "is the money spent on funerals subject to inheritence tax?" is the "value" of the diamond the money spent to make it or the going market rate if one sold it (whether or not its sold?)

Public Comments

1. not tax free! sorry!
2. The fineral is a legitimate deduction in winding up the estate and is deductable for IHT purposes. The diamond question - presumably the making of the diamond is an expenses of the estate, but then the sale proceeds of the diamond would be added to the value of the estate and so be liable to IHT.
3. Sold or not, the value of the diamond is what matters.