Successor David Cameron called her a "great Briton" and the Queen spoke of her sadness at the death. Lady Thatcher was Conservative prime minister from 1979 to 1990. She was the first woman to hold the role. She will not have a state funeral but will be accorded the same status as Princess Diana and the Queen Mother. The ceremony, with full military honours, will take place at London's St Paul's Cathedral. The union jack above Number 10 Downing Street has been lowered to half-mast. Mr Cameron, who is in Madrid for meetings, has cancelled planned talks in Paris with French President Francois Hollande and will return to the UK later on Monday.
Lady Thatcher, born Margaret Roberts, served as MP for Finchley, north London, from 1959 to 1992.
Having been education secretary, she successfully challenged former prime minister Edward Heath for her party's leadership in 1975 and won general elections in 1979, 1983 and 1987.
Lady Thatcher's government privatised several state-owned industries. She was also in power when the UK went to war with Argentina over the Falkland Islands in 1982.
In a statement on the Downing Street Twitter feed, Mr Cameron said: "It was with great sadness that l learned of Lady Thatcher's death. We've lost a great leader, a great prime minister and a great Briton."
A Buckingham Palace spokesman said: "The Queen was sad to hear the news of the death of Baroness Thatcher. Her Majesty will be sending a private message of sympathy to the family."
Deputy Prime Minister Nick Clegg described Lady Thatcher as one of the "defining figures in modern British politics", adding: "She may have divided opinion during her time in politics but everyone will be united today in acknowledging the strength of her personality and the radicalism of her politics."
London Mayor Boris Johnson tweeted: "Very sad to hear of death of Baroness Thatcher. Her memory will live long after the world has forgotten the grey suits of today's politics."
UK Independence Party leader Nigel Farage called Lady Thatcher a "great inspiration", adding: "Whether you loved her or hated her nobody could deny that she was a great patriot, who believed passionately in this country and her people. A towering figure in recent British and political history has passed from the stage. Our thoughts and prayers are with her family."
Lady Thatcher had suffered poor health for several years.
Margaret Thatcher died, aged 87
Margaret Thatcher died, aged 87
Avrupa Times, Turkish British news for the Turkish Community in the world Avrupa Times, Turkish British news for the Turkish Community in the world
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Margaret Thatcher has died 'peacefully' at the age of 87 after suffering a stroke, her family has announced.
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