Crematoria
Source: gov.uk (2025-02-21)

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Co-ordination

Crematoria are subject to co-ordination procedures as outlined in the relevant Practice Note.

2. Description

2.1 Design of Crematoria

Cremation is regulated by various statutes and regulations starting with The Cremation Act 1902, which empowers the burial authorities to establish crematoria, but no crematorium may be nearer than 50 yards from a highway or 200 yards from any dwelling house, without the written consent of the owners. In London Boroughs the 200 yards has been reduced to 100 yards. Crematoria cannot be situated in the consecrated part of a burial ground of a Burial Authority. It is an offence to cremate except in accordance with the Act and the regulations.

Crematoria vary greatly in design and size. Actual hereditaments may fall short of this ideal in some respects. The common features normally found are one or more chapels, administration offices, waiting rooms, vestry, committal rooms, crematory and cremators and toilets. There is a frequently a covered entrance known as a ‘porte cochere’ to shelter mourners waiting to enter the chapel, and other open sided covered areas, sometimes resembling cloisters, to allow mourners to congregate and examine wreaths, floral tributes etc after the service.

Externally there will be car parking and usually extensive landscaped grounds with a garden of remembrance. There may also be columbaria (niches for the reception of urns containing ashes) and sometimes a separate chapel of remembrance purely for private devotions.

2.2 Cremators

The older type of cremator is known as a reverberatory furnace. The coffin is consumed on a shallow hearth by a flame passing over it and heating a low roof. Firing may be oil, gas, coke or pulverised coal. Most of the heat is radiated from the roof of the furnace.

The modern type is a direct burn furnace where the whole interior of the furnace is heated. A typical modern cremator is computer-controlled, with two furnaces side by side within a steel cased framework which is refractory lined. Where firing is by gas, external fans supply both forced and induced draught. A typical size is approximately 3.6 by 3.3 by 2.6 metres high. The normal working temperature is 800 degrees Celsius, although this rises to about 1,100 degrees Celsius by the end of a working day. Modern cremators monitor the exhaust gases for pollutants and air flow is adjusted automatically.

2.3 Crematorium Size

Before a crematorium is designed, research is undertaken to ascertain the proposed likely throughput. This will determine the number of cremators and the number of chapels which are required.

2.4 Crematorium Operation

Although local authorities are not obliged to provide them, many crematoria are municipal, although there is a substantial private sector involvement. Many crematoria make other charges apart from the basic cremation fee for services associated with the cremation such as, the use of the chapel, scattering of ashes, music, floral decorations, and medical referee’s fees. More substantial ancillary income is earned from sales and placing of memorials, and other additions to the service, such as audio-visual services, and keepsakes.

3. Survey Requirements

3.1 Basis of Measurement

The basis of measurement for all buildings should be Gross Internal Area, as defined in the Code of Measuring Practice for Rating Purposes.

The following data should also be recorded:
- Total site area.
- Any area used purely for screening purposes (e.g. woodland).
- (In crematoria not situated within cemeteries) the area of any land reserved for the future interment of ashes in urns.
- Area of car parks.
- Perimeter length and type of fence/wall.
- Annual number of cremations, and other relevant receipts and expenditure information
- Date crematorium opened.
- Location and approximate distance away of other crematorium in the locality
4. Basis of Valuation

4.1 General

In the absence of significant rental evidence, reliance must be placed on the receipts and expenditure or contractor’s bases. Any rental evidence which comes to light at any stage should be passed to the National Valuation Unit.

Crematoria are capable of being operated for profit. Some are in private operation, and new private crematoria are being developed. Local authority crematoria are provided as a public service, but nevertheless normally earn a surplus of income over expenditure. No distinction should be made between the two sectors in terms of overall levels of value. In most cases if vacant and to let the hereditaments may attract either a municipal or a private tenant.

The receipts and expenditure basis should be applied to both private and local authority crematoria.

Detailed advice about the application of the receipts and expenditure basis is provided in Practice Notes.

4.2 Combined Cemeteries and Crematoria

Combined cemeteries and crematoria, in a single hereditament, should be valued in accordance with para 4.1. In a receipts and expenditure valuation, any loss arising from the operation of the cemetery must not be set off against profits from the crematorium (see para 5.1 below).

5. Case Law and Valuation Considerations

5.1 No Set-off of Losses Against Profits

In Gudgion (VO) v Croydon 1970 RA 341, the Lands Tribunal Member held that in the case of a hereditament comprising a loss-making cemetery and a profitable crematorium, it was wrong to set-off the losses from the former against the profits from the latter.

5.2 Surplusage – No Allowance for Unused Capacity

In the same case the Member rejected a surplusage allowance based on a crude comparison of the maximum number of cremations per annum which the hereditament was capable of accommodating, and the much smaller actual number of cremations per annum which could be anticipated at the date of valuation. It was pointed out that this comparison ignored the need to ensure that the crematorium was capable of meeting the peak period demand. A degree of surplusage is therefore unavoidable and does not justify an allowance, unless it exceeds what is required to meet peak period demand.

5.3 Cemetery Value in Combined Hereditament

Also in the same case, the Member declined to add any element in the final valuation in respect of the loss-making cemetery. This aspect of the decision was made on the facts of the particular case where most of the cemetery was exhausted and no argument was put as to the contribution which the cemetery land made to the setting of the crematorium.

Appendix 1 - Inspection checklist

Crematoria inspection checklist (https://assets.publishing.service.gov.uk/media/67b8823dd157fd4b79addce8/Inspection_Checklist_-_Crematoria.doc)

Practice note: 2023 - crematoria (with and without cemeteries) (National Scheme)

1. Market Knowledge

Since 2015 there has been an increase in average cremation fees in England and Wales of over twenty three percent.

The practice of trying to restrict cremation fees employed by some local authorities in the past has now largely disappeared. There are now few crematoria that are not achieving a surplus and with large private companies involved in the provision of cremation services, occupiers in this sector are driven by a profit motive.

There have been thirty-three new crematoria built since 2015, an increase of circa 12% which is broadly in line with the general increase in the numbers of cremations during the period to 2018. This reflects the continuing trend towards cremations when viewed as a percentage of overall deaths.

These new crematoria have largely been set up to compete with established locations that are carrying out higher than average cremation numbers.

The impact of Covid-19 saw a further rise in cremations throughout 2020 contributing to an overall increase since 2015 of around 26%. Excluding the impact of Covid-19 and reflecting the wider market in terms of increased provision and popularity of cremation would indicate an average increase in cremation numbers of circa 12%. When establishing the fair maintainable trade i.e. cremation numbers, the foreseeable impact of Covid-19 should be taken into account as they would have been anticipated by the parties at the AVD.

2. Changes from the last Practice Note

There is no significant change to the valuation approach for 2023. Reference to the Environmental Surcharge has been removed as it is no longer appropriate.

3. Ratepayer Discussions

There have been no discussions as yet with ratepayer representatives. However a similar valuation scheme to that used previously has been adopted. This was devised from an analysis of financial information for a number of crematoria across a range of sites of different ages and characteristics.

These characteristics are reflected in the shortened receipts and expenditure valuation by the inclusion of appropriate allowances.

4. Valuation Scheme

No rental evidence has been found for this class of property and as these properties are occupied for profit a receipts and expenditure scheme has been devised.

There are various sources of publicly available information that will aid the valuation process and these have been incorporated within the practice note.

4.1 Stage One

It is firstly necessary to establish a level of fair maintainable cremations for a site as at 1 April 2021.

The fair maintainable cremation figure should be chosen carefully to avoid any temporary changes that might affect a yearly figure. As stated above pre-Covid numbers have been considered alongside its wider foreseeable impact in order to obtain an acceptable figure.

Appendix A below gives comprehensive cremation figures for the five years leading up to the AVD relating to locations throughout England and Wales.

A material change of circumstances may occur when a new crematorium is opened close to an established business. The new crematorium may have a significant effect on the level of maintainable cremations of the established business.

4.2 Stage Two

It is then necessary to establish the cremation fee that is being charged at the AVD. Fee charges at the AVD are shown for crematoria in England and Wales in Appendix B.

When investigating fee charges, care should be taken to establish that the fee is not too low for the region in which the crematorium is placed.

If it is judged that the occupier is not charging a commercial fee, it is permissible to look at fees of neighbouring crematoria to establish an average fee figure.

Once the fair maintainable cremation figure and the fee charge is established, it is possible to establish a total gross income from cremations by multiplication.

4.3 Stage Three

Once a gross income from cremations has been calculated, it is then necessary to deduct a sum for non- chargeable cremations. A crematorium may cremate the remains of those who are unable to afford a cremation in its area free of charge and charges are not levied for foetal remains.

An investigation of accounts shows that a deduction of 2.5% from the income from cremations figure should be made.

From the resultant amount a sum to reflect the medical referee charge should be deducted. This figure is calculated by multiplying the fair maintainable cremations by £20.

Once these deductions are made, a total cremation income is achieved.

4.4 Stage Four

It is then necessary to establish an income to the operator from memorials as at the AVD. This figure should reflect an amount of total revenue less cost of purchase only.

As with fees, care should be taken to establish that memorials are being sold on a commercial basis and it is permissible to look at sums raised at neighbouring crematoria to establish an average figure.

4.5 Stage Five

After establishing a total income figure for cremations and memorials, it is then necessary to calculate a percentage of revenue to establish a rental figure.

Analysis of accounts has established figures outlined in the table shown in Appendix C.

4.6 Stage Six

A final deduction from the rental figure is to be made to reflect the level of operating costs associated with the site characteristics for various site age bands. The allowances to reflect the operating costs involved and the age bands are shown in Appendix D.

4.7 Valuation Records

Crematoria valuations are carried out on a stand-alone spreadsheet and copies stored in the hereditament EDRM folder.

Appendix A

Appendix B

Fees at AVD - 01 April 2021

Appendix C

NOTE: % Rental Bid to be tapered between total income points up to a maximum of 17.50%

A more in-depth example of how rental bids are to be related to total income figures is shown in the table below. The table below should be applied in the settlement of 2023 crematoria rating assessments:

Appendix D

Allowances to reflect operating costs associated with site characteristics for the following ages:
- for properties constructed before1950, a 20% allowance is to be considered
- for properties constructed between 1950 – 1959, a 15% allowance is to be considered
- between 1960 – 1969, a 10% allowance is to be considered
- between 1970 – 1989, a 5% allowance is to be considered
- with no allowance considered for properties constructed after 1990
Practice note: 2017 - crematoria

1. Market Knowledge

Since 2008 there has been an increase in average cremation fees in England and Wales of over forty five percent.

The practice of trying to restrict cremation fees employed by some local authorities in the past has now largely disappeared. There are now few crematoria that are not achieving a surplus and with large private companies involved in the provision of cremation services, occupiers in this sector are driven by a profit motive.

The increase in fees has been somewhat matched by increasing costs.

Fuel, repairs and staff costs have increased by some forty percent.

A significant cost to the industry has been the need to abate harmful mercury emissions.

The Department for Environment, Food and Rural Affairs insisted on a fifty percent reduction in mercury emissions by 2013 and the industry continues to abate.

Costs of abatement can amount to over £500,000 per cremator.

Some sites are unable to accommodate the new abatement equipment and therefore a scheme has been devised by the industry that allows burden sharing across participating occupiers.

Occupiers can either install abatement equipment and recoup their costs from a fund set up by the industry or they can contribute to the fund which is administered by CAMEO, the Cremation Abatement of Mercury Emissions Organisation and not carry out abatement works.

There have been seventeen new crematoria built from 2008 to 2013 but the number of annual cremations has remained relatively static.

These new crematoria have largely been set up to compete with established locations that are carrying out higher than average cremation numbers.

2. Changes From The Last Practice Note

The valuation scheme has been updated to reflect the larger contribution occupiers make for mercury abatement (described as the Environmental Charge) at the antecedent valuation date.

This charge has increased from £35 per cremation in 2008 to £52 per cremation in 2015.

A new cost has also been reflected in the scheme. The medical Referee charge is included by taking a sum of £18.50 per cremation.

3. Ratepayer Discussions

Discussions have been held with a leading company of surveyors representing some of the major occupiers in the sector.

A valuation scheme has been devised from an analysis of financial information for a number of crematoria across a range of sites of different ages and characteristics.

From this analysis a shortened form of a receipts and expenditure valuation has been developed.

The analysis reflected the age and site characteristics of the different sites under consideration.

These characteristics are reflected in the shortened receipts and expenditure valuation by the inclusion of appropriate allowances.4. Valuation Scheme

No rental evidence has been found for this class of property and as these properties are occupied for profit a receipts and expenditure scheme has been devised.

There are various sources of publically available information that will aid the valuation process.

The Chartered Institute of Public Finance and Accountancy, for example, annually supplies public information on costs and revenues for local authorities that provide returns to CIPFA.

The Cremation Society of Great Britain also provides information relating to the operations of both public and private cremation occupiers.

4. Valuation Scheme

No relevant rental evidence has been found for this class of property and as these properties are occupied for profit a receipts and expenditure scheme has been devised.

There are various sources of publically available information that will aid the valuation process.

The Chartered Institute of Public Finance and Accountancy, for example, annually supplies public information on costs and revenues for local authorities that provide returns to CIPFA.

The Cremation Society of Great Britain also provides information relating to the operations of both public and private cremation occupiers.

4.1 Stage One

It is firstly necessary to establish a level of fair maintainable cremations for a site as at 1st April 2015.

This information is provided annually for each location by the Cremation Society of Great Britain, based on a yearly period from January to December. The fair maintainable cremation figure should be chosen carefully to avoid temporary changes that might affect a yearly figure. An average of yearly figures around the AVD may be used to obtain an acceptable figure.

Appendix A below gives comprehensive cremation figures for the three years leading up to the AVD relating to locations throughout England and Wales.

A MCC may occur when a new crematorium is opened close to an established business. The new crematorium may have a significant effect on the level of maintainable cremations of the established business.

4.2 Stage Two

It is then necessary to establish the cremation fee that is being charged at the AVD. Fee charges at the AVD are shown for crematoria in England and Wales in Appendix B.

When investigating fee charges, care should be taken to establish that the fee is not too low for the region in which the crematorium is placed.

If it is judged that the occupier is not charging a commercial fee, it is permissible to look at fees of neighbouring crematoria to establish an average fee figure.

Once the fair maintainable cremation figure and the fee charge is established, it is possible to establish a total gross income from cremations by multiplication.

4.3 Stage Three

Once a gross income from cremations has been calculated, it is then necessary to deduct a sum for non- chargeable cremations. A crematorium will cremate the remains of those who are unable to afford a cremation in its area free of charge and charges are not levied for foetal remains.

An investigation of accounts shows that a deduction of 2.5% from the income from cremations figure should be made.

From the resultant amount a sum to reflect the environment reserve charge should be deducted. This figure is calculated by multiplying the fair maintainable cremations by £52.

A final deduction is required to reflect the medical Referee charge by multiplying the fair maintainable cremation by £18.50.

Once these deductions are made, a total cremation income is achieved.

4.4 Stage Four

It is then necessary to establish an income to the operator from memorials as at the AVD. This figure should reflect an amount of total revenue less cost of purchase only.

As with fees care should be taken to establish that memorials are being sold on a commercial basis and it is permissible to look at sums raised at neighbouring crematoria to establish an average figure.

4.5 Stage Five

After establishing a total income figure for cremations and memorials, it is then necessary to calculate a percentage of revenue to establish a rental figure.

Analysis of accounts has established figures outlined in the table shown in Appendix C.

4.6 Stage Six

A final deduction from the rental figure is to be made to reflect the level of operating costs associated with the site characteristics for various site age bands. The allowances to reflect the operating costs involved and the age bands are shown in Appendix D.

4.7 Valuation Records

Crematoria valuations are carried out on a stand alone spreadsheet which is stored in the hereditament EDRM folder.

Appendix B

Fees at AVD - 01 April 2015

Appendix C

Total Income

% Rental Bid

100,000

7.00%

250,000

7.75%

500,000

9.00%

750,000

10.25%

1,000,000

11.50%

1,250,000

12.75%

1,500,000

14.00%

1,750,000

15.25%

2,000,000

16.50%

NOTE: % Rental Bid to be tapered between total income points up to a maximum of 17.50%

A more in depth and agreed example of how rental bids are to be related to total income figures is shown in the table below. The table below should be applied in the settlement of 2017 crematoria rating assessments

Total Income (£)

% Rental Bid

Total Income (£)

% Rental Bid

100,000

7.00

1,250,000

13.00

125,000

7.17

1,275,000

13.13

150,000

7.33

1,300,000

13.25

175,000

7.50

1,325,000

13.38

200,000

7.67

1,350,000

13.50

225,000

7.83

1,375,000

13.63

250,000

8.00

1,400,000

13.75

275,000

8.13

1,425,000

13.88

300,000

8.25

1,450,000

14.00

325,000

8.38

1,475,000

14.13

350,000

8.50

1,500,000

14.25

375,000

8.63

1,525,000

14.38

400,000

8.75

1,550,000

14.50

425,000

8.88

1,575,000

14.63

450,000

9.00

1,600,000

14.75

475,000

9.13

1,625,000

14.88

500,000

9.25

1,650,000

15.00

525,000

9.38

1,675,000

15.13

550,000

9.50

1,700,000

15.25

575,000

9.63

1,725,000

15.38

600,000

9.75

1,750,000

15.50

625,000

9.88

1,775,000

15.60

650,000

10.00

1,800,000

15.70

675,000

10.13

1,825,000

15.80

700,000

10.25

1,850,000

15.90

725,000

10.38

1,875,000

16.00

750,000

10.50

1,900,000

16.10

775,000

10.63

1,925,000

16.20

800,000

10.75

1,950,000

16.30

825,000

10.88

1,975,000

xx-xxxx-xxxx

850,000

11.00

2,000,000

16.50

875,000

11.13

2,025,000

16.60

900,000

11.25

2,050,000

16.70

925,000

11.38

2,075,000

xx-xxxx-xxxx

950,000

11.50

2,100,000

xx-xxxx-xxxx

975,000

11.63

2,125,000

17.00

1,000,000

11.75

2,150,000

17.10

1,025,000

11.88

2,175,000

17.20

1,050,000

12.00

2,200,000

17.30

1,075,000

12.13

2,225,000

17.40

1,100,000

12.25

2,250,000

17.50

1,125,000

12.38

1,150,000

12.50

1,175,000

12.63

1,200,000

12.75

1,225,000

12.88

Appendix D

Allowances to reflect operating costs associated with site characteristics for the following ages:

For properties constructed before1950, a 20% allowance is to be considered.

For properties constructed between 1950—1959, a 15% allowance is to be considered.

Between 1960—1969, a 10% allowance is to be considered.

Between 1970—1989, a 5% allowance is to be considered.

With no allowance considered for properties constructed after 1990.