Stop taxing the dead, urge LibDems

Stop taxing the dead, urge LibDems

The Liberal Democrats have called on the government to scrap VAT on headstones and other commemorative sculptures for graves.

They have tabled a Commons motion attacking the charge, imposed when VAT was first levied in 1973, putting the issue at the feet of financial secretary to the Treasury Paul Boateng.

More than ten MPs, led by Edinburgh West representative John Barrett, have signed the plea to drop what they call an ‘insensitive and totally outrageous’ imposition on grieving people.

Although all other services provided by an undertaker are exempt from the 17.5% VAT levy, headstones and other commemorative sculptures such as urns provided by undertakers in connection with a burial or a cremation are charged VAT.

Boateng has so far refused to carry out any review and claims that when the tax was introduced the purchase of closely related commemorative items connected with funerals was considered to be more of a matter of choice and therefore not included within the scope of the exemption.

Responding Barrett said: ‘I am at a lost to understand why the government will not review this decision and allow all services provided by an undertaker to be exempt from VAT.

‘I hope this motion goes some way to getting a change in policy and lightening the heavy financial burden placed on people at a vulnerable time,’ he added.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource