New VAT rules for race horse trainer stables and stud farms
The cost of owning and training a race horse is set to increase with the introduction of new VAT rules expected to be announced shortly.
Under proposals seen by Thames Valley accountants and Business advisers James Cowper, HMRC hopes to make certain livery services subject to the standard rate of VAT. Special purpose stables such as those operated by race horse trainers, stud farms and stables involved in the schooling or breaking-in of horses now face the prospect of livery attracting the standard rate of VAT.
The move follows an early clampdown by HMRC, with it targeting private tutors including those who provide riding lessons.
Ruth Corkin, VAT Manager at James Cowper explained:
In some circumstances stable livery packages were previously exempt from VAT. Now it will be charged at the standard rate of 20%. VAT in the equine world is terrible complicated and it is easy to make a simple mistake. We therefore strongly recommend that anyone who thinks they might be affected seeks advice from their accountant or tax adviser.
James Cowper LLP is one of the Thames Valleys leading firms of accounting and business advisers. It has offices in Newbury, Oxford, Reading, Southampton, Henley and London and a client base of over 3,000 businesses and private individuals. It advises a diverse range of businesses and private tax clients, ranging from start-up ventures to blue chip plcs and private individuals. James Cowpers membership of Kreston International gives clients access to one of the worlds largest accountancy and business advisory networks, enabling the firm to deliver informed, strategic advice in an international as well as a regional and national context.