Equine Assets & Tax - The Complexities Unravelled

Introduction

Are your clients involved in the equine world? With the tax landscape growing ever more complex, equine assets and operations now demand specialist insight and planning.

This comprehensive full-day course dives deep into the unique tax challenges surrounding equine businesses - from full competition yards, all areas of racing stud farms to liveries and riding schools. With developments like the shift to 50% APR/BPR after the £1million allowances and transferable spouse allowance and major cases such as Vigne, Cliff, and HMRC’s changes on stud loss allowances, the equine sector is firmly in the HMRC spotlight.

Whether your clients are diversifying farming operations or operating dedicated equestrian ventures, you will gain practical insights into inheritance tax (‘IHT’), and business property relief (‘BPR’). Agricultural property relief (‘APR’) applies to horse breeding operations. The often-confusing VAT position of equine enterprises is considered in depth. Expert guidance from Julie Butler, author of Butler’s Equine Tax Planning and Tax Planning for Farm & Land Diversification, ensures a comprehensive overview - linking equestrian businesses to wider land use opportunities like furnished holiday accommodation and rural tourism and pony trekking etc.

Join us for this essential course and equip yourself with the knowledge to navigate the complexities of equine tax planning with confidence. Book your place today and stay ahead of the curve in this fast-evolving field.

What You Will Learn

This course will cover the following:

• HMRC aggressive approach to equine loss claims - Cliff, Thorne etc, and the removal of the 11-year loss claim advantage for the stud through BIM 55725
• The badges of trade v ‘hobby equine’ - the fine line of what is a business
• BPR and general equine activities - proof of commerciality - the importance of the equine business plan and links to massive changes to farmland generally
• The loss of EIS relief on livery business - Valyrian Bloodstock
• Stud farming and income with the interaction of the eligibility of APR - the breeding of horses is farming - the advantage of the stud farmhouse
• APR and farming for the environment in Budget 2023 and 2024 - impact on equine operations - awaits the working party full report
• Vigne - enhanced livery service, Upper Tribunal positive decision for BPR
• Tax efficient stallion disposals
• The stud farmhouse and cottages eligibility for RNRB, APR and BPR and downsizing with PPR etc
• Equine IHT enquiries and the HMRC approach
• The BIM 55725 removal of 1982 11-year stud loss concession, full dependence on commerciality criteria back to hobby farming rules
• VAT and livery complexities - zero, exempt, standard, partial exemption
• VAT and teaching as an exempt supply - impact of recent VAT cases
• Racehorse ownership - VAT claims under the Racehorse Owners Scheme and tax planning
• Tax efficient equine sponsorship for corporates and competitors
• Tax planning and equine diversification - riding schools, tourism, polo, showjumping, dressage and eventing
• Horse dealing and ‘pinhooking’ tax planning - the profitable area of equine
• The equine probate and divorce considerations, especially with the transferable spousal £1million allowance for BPR and surviving spouse relief for IHT
• The equine business and equine development land tax planning
• Allowing for private usage of horses in terms of VAT, income tax and capital taxes - can be positive to prove a profit
• Tax treatment of haymaking for horses for VAT and IHT
• Opting to VAT on equine development opportunities including compulsory purchase and loss of hope value
• Sharkey v Wernher and the transfer to stud stock at market value from racing
• Racing interaction with breeding and the stud operation and overall racing interaction
• CGT increases in the BADR rates - impact on the ‘rollover buyer’ of converting a farm to a stud and the attractive 50% IHT rate for studs and lifestylers
• The importance of good equine books and records, strong MTD for VAT and superb trail of evidence tying into business plans and management info on all equine clients for HMRC scrutiny
• Impact of the abolition of Furnished Holiday Accommodation (‘FHA’) tax advantage with the overall equine operation and the possibility for ‘Tanner Farm Hotel’ moving equine into the vibrant tourist offering