VAT registration ― owners of racehorses

Produced by Tolley

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

  • VAT registration ― owners of racehorses
  • VAT registration conditions
  • Registering for VAT
  • Owner already VAT registered
  • Sponsorship
  • Imports
  • Accounting for VAT
  • Input tax
  • Output tax
  • Supplies of point-to-point horses
  • More...

VAT registration ― owners of racehorses

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.

VAT registration conditions

The registered owner of a racehorse(s) at Weatherbys can apply to be VAT registered under the scheme and either:

  1. the horse is covered by a sponsorship agreement registered at Weatherbys or by a trainer’s sponsorship agreement that is registered at Weatherbys

  2. 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.

Registering for VAT

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

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