Farming and other rural activities

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Farming and other rural activities
  • Live animals
  • Animal food
  • Looking after livestock
  • Farmers
  • Granting sporting and fishing rights
  • Riding lessons

This guidance note provides an overview of the VAT implications associated with farming and other rural activities.

Live animals

The sale, hire or loan or supply of part of an interest in the following live animals can be zero-rated if it is of a kind that is generally used in the UK as, or yielding or producing, food for human consumption:

VAT Notice 701/15 ; VFOOD3600; VFOOD3880; VATA 1994, s 30 Sch 8, Group 1, item 4
  • meat animals
  • dairy animals
  • poultry (except ornamental breeds), including those for egg production. The zero-rating also includes most breeds of chicken, game birds and ostriches
  • ducks - includes Aylesbury, Campbell (Khaki Campbell), Indian Runner, Muscovy, Pekin and derivatives and crossbreeds of these ducks
  • geese - includes Brecon Buff, Chinese Commercial, Embdem, Roman, Toulouse and derivatives and crossbreeds of these geese
  • turkeys - includes Beltsville White, British White, Broadbreasted White, Bronze (Broadbreasted Bronze), Norfolk Black and derivatives and crossbreeds of these turkeys
  • honey bees. The hire of honey bees for pollination purposes is zero-rated. However, if the bees are supplied in a hive, the hive will be standard-rated and an apportionment made between the cost of the bees and the hive.
  • fish (except ornamental breeds and coarse fish) that are recognised as food for human consumption, including those for production of edible roes
  • crustacea - lobsters, oysters, shrimps, mussels, prawns, whelks, etc used for human consumption
  • deer (excluding ornamental breeds)

Animals that will be kept as pets can be zero-rated only if they are of a kind that is normally used for human food production, eg rabbits (other than ornamental breeds). The hire of a bull for insemination purposes will also be zero-rated as will fish

More on Farming and agricultural activities: