The 87-year-old former prime minister died on Monday, after suffering a series of strokes.
The funeral ceremony, with full military honours, will take place at London’s St Paul’s Cathedral, following a procession from Westminster.
The Queen, accompanied by the Duke of Edinburgh, will attend the service, Buckingham Palace said.
Lady Thatcher will not have a state funeral but will be accorded the same status as Princess Diana and the Queen Mother.
A ceremonial funeral is one rung down from a state funeral – normally reserved for monarchs – and requires the consent of the Queen.
Lady Thatcher, a Conservative, was the UK’s first female prime minister. She was in office from 1979 to 1990 and won three successive general elections.
She died “peacefully” after suffering a stroke while staying at the Ritz hotel in central London. Lady Thatcher had been staying at the hotel since being discharged from hospital at the end of last year.
Parliament will be recalled from its Easter recess this Wednesday to enable MPs and peers to pay tributes.