V2.118 Racehorse owners

A person seeking VAT registration in respect of his activities as a racehorse owner is, in principle, subject to the same legal provisions as any other person; that is, he must be making, or intending to make, taxable supplies in the course or furtherance of a business (see V2.134 and V2.144 respectively). In practice, the question of determining whether a particular owner's activities amounted to a business was problematic. As a result, HMRC introduced, in agreement with the British Horseracing Board, a special scheme for the registration of racehorse owners. The scheme was originally introduced on 16 March 1993 and was amended with effect from 1 January 1998. The pre-1 January 1998 scheme is still available, but only for owners who were registered for VAT before that date1. For details of the pre-1 January 1998 scheme, see VBNB50100.

The normal rules for racehorse owners

The normal registration rules will apply to persons whose business activity is connected with bloodstock, for example2:


    •     breeders who race colts, fillies or home bred geldings with the intention of enhancing the value of their breeding stock


    •     trainers who own and retain horses with a view to attracting owners or buyers and to provide rides for apprentices, provided the number of horses is not disproportionate to the main activity of

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