The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the registration scheme that can be used by businesses that own racehorses. The scheme was introduced with the agreement of the thoroughbred horseracing and breeding industry, and subject to certain conditions, owners are viewed as carrying on a business and can therefore register for VAT.
The registered owner of a racehorse(s) at Weatherbys can apply to be VAT registered under the scheme and either:
It should be noted that only the registered owner of a racehorse at Weatherbys isentitled to register for VAT under the scheme. The registered owner can be a sole proprietor, partnership or a limited company. Where a part share only in a racehorse isowned, the part owner isable to VAT register in their own name if they own at least 50% of the horse. If the owner does have at least 50% ownership of the racehorse, then they must register in partnership with the other joint owners.
Racehorse owners will need to submit a paper application to register for VAT and will therefore need to download a VAT1 . The applicant will also need to complete one of these additional forms ― Form D1 (owners not in partnership) or D2 (partnerships). The form D isused to confirm that the business has a sponsorship agreement in
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login