In the First-Tier tribunal (FTT) case of Hodge and Deery Limited the issue was whether ground works preparatory to installing flexi vault burial chambers exempt via The VAT Act 1994, Schedule 9, group 8, item 2 – “The making of arrangements for or in connection with the disposal of the remains of the dead.”
In addition to the cost-of-living crisis, there is also a cost-of-dying crisis as funeral costs increase due to factors such as a lack of space for burials and increasing energy costs for cremations. As a result, recent reports highlight families are turning to renting coffins and Scotland could soon approve ‘water cremations‘. Part of the problem is that the lack of land can result in burial plots being located in areas with unstable soil or issues with water ingress, as highlighted in the recent case of Ayr Cemetery where bodies will need to be exhumed to resolve the issue, ultimately leading to extra burial costs. A recent VAT case may however help to ease the financial burden of bereaved families.
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