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 and studs to liveries and stud farms. With developments like the shift to 50% APR/BPR and major cases such as Vigne, Cliff, and HMRC’s changes on stud loss allowances, the equine sector is firmly in the tax spotlight.

Whether your clients are diversifying farming operations or operating dedicated equestrian ventures, you will gain practical insights into inheritance tax (‘IHT’), business property relief (‘BPR’), and the often-confusing VAT position of equine enterprises. 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 lets and rural tourism.

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 a BIM
• 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
• Vigne - enhanced livery, Upper Tribunal positive decision for BPR
• Tax efficient stallion disposals
• The stud farmhouse and cottages eligibility for RNRB, APR and BPR
• Equine IHT enquiries and the HMRC approach
• The BIM 55725 removal of 1982 11-year stud loss concession, full dependence on commerciality criteria
• 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 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 equine probate and divorce considerations
• The equine business and equine development land tax planning
• Allowing for private usage of horses in terms of VAT, income tax and capital taxes
• Tax treatment of haymaking for horses
• Opting to VAT on equine development opportunities including compulsory purchase
• Sharkey v Wernher and the transfer to stud stock at market value
• Racing interaction with breeding and the stud operation
• Increases in the BADR rates - impact on the ‘rollover buyer’ of converting a farm to a stud
• The importance of good books and records, strong MTD for VAT and superb trail of evidence tying into business plans and management info on all equine clients
• Impact of the abolition of Furnished Holiday Accommodation (‘FHA’) tax advantage with the overall equine operation and the possibility for ‘Tanner Hotel’