The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
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:
the horse is covered by a sponsorship agreement registered at Weatherbys or by a trainer’s sponsorship agreement that is registered at Weatherbys
the owner can show that they have received business income from horseracing activities, such as, appearance money or sponsored number cloths, and intend to continue to do so
It should be noted that only the registered owner of a racehorse at Weatherbys is entitled 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 is owned, the part owner is able 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
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
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
‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
Maintenance payments are payments made by a taxpayer to their former or separated spouse for the maintenance of that former spouse or their children. To obtain any tax relief for maintenance payments, one of the couple must have been born before 5 April 1935 and the payments must be made by virtue
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.