25 August 2011
Press ReleasesThe 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 Kreston, 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 Kreston 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.”
Ruth Corkin is a VAT manager at James Cowper Kreston LLP, accountants and business advisers in the Thames Valley. She can be reached by email: rcorkin@jamescowper.co.uk. For more information visit www.jamescowper.co.uk.
