Equine Tax Planning - In a Nutshell

Introduction

Equine tax compliance and planning is complex and needs specialist advice.

The stud farm - as the breeding of horses is farming for tax and therefore can take advantage of the farmers averaging, agricultural property relief (APR) and the hobby farming rules.

All other equine operations eg. livery businesses, riding schools, racing yards, competition operations e.g. show jumping, eventing, dressage and polo come under normal tax rules but it is essential to forensically understand the operations.

The VAT position on all equine transactions is especially complex. The propensity to allow infrastructure costs to exceed income is high, so business plans must be prepared and controlled.

What You Will Learn

This short webinar will cover the following:

• The new EIS case of Valyrian Bloodstock - keeping horses not a trade
• The removal of 11-year hobby farming loss rule for studs - Thorne and Cliff
• The valuation of equine stocks - defining production costs
• Sideways loss relief advantages and restrictions - the business plan
• Babylon Farms - the need to prove a business, income sources
• Tax reliefs of buying a stud/equestrian business - rollover relief, IHT potential
• The birth of the rollover buyer - CGT mitigation and replacement relief IHT
• Tax efficient horse ownership - ‘tax free’ - sponsorship potential - Chepstow Plant
• Liveries- the importance of services for BPR - the Vigne case
• VAT - exempt teaching, exempt liveries , the racehorse owners scheme
• The equine house - PPR, Longson Baker, stables in the garden, Whyte, Phillips
• COVID - the growth of tax planning around the ‘pony paddock’

This webinar was recorded on 7th December 2022