The Complexities of Equine Assets & Tax Explained - Live at Your Desk

Introduction

This virtual classroom seminar will consider all areas of equine tax planning.

Many firms of accountants, solicitors and tax advisers have clients with equine assets and interests with associated tax issues that can be extremely complicated, especially where these involve full competition yards and studs.

With greater farm diversification the role of the horse and equine operation has become more critical to farming income streams, including haymaking for horses, increased liveries and letting facilities to competition horses. The leading IHT Upper Tribunal case of Vigne has brought the horse into the tax spotlight as has the stud losses allowability change by HMRC and the equine loss case of Cliff. Vigne looks at the importance of services to achieve BPR for IHT. Post COVID-19 (in 2020) with the move to “hybrid” working at home, the large garden and the pony paddock has become an area of very important tax planning.

This session will consider all tax issues in the round that are facing the equine world. Julie Butler is author of Butler’s Equine Tax Planning together with Tax Planning for Farm & Land Diversification and the broadcast therefore has a wide view on all areas equestrian and as they link to alternative land use including furnished holiday accommodation and the equine tourist offering.

What You Will Learn

A full update on all Equine Tax Issues ranging from dedicated equestrian business and competition yards to diversifying farmers.

This live and interactive session will cover the following:

• HMRC aggressive approach to equine loss claims - Cliff, Thorne etc, and the removal of the 11 year loss claim advantage for the Stud
• The badges of trade v “hobby equine” - the fine line
• BPR and general equine activities - Proof of commerciality - the importance of the equine business plan and links to massive changes to farmland generally
• The loss of EIS relief on livery business - Valyrian Bloodstock
• Stud farming & income with the interaction of the eligibility of APR
• APR and farming for the environment in Budget 2023 and 2024 - impact on equines
• Vigne - enhanced livery, Upper Tribunal positive decision for BPR
• Tax efficient stallion disposals
• The stud farmhouse and eligibility for RNRB and APR
• Equine IHT enquiries and the HMRC approach
• The BIM 55725 removal of 1982 11 year concession, full dependence on commerciality criteria
• VAT and livery complexities - zero, exempt, standard, partial exemption
• VAT and teaching as an exempt supply - impact of recent VAT cases
• Racehorse ownership - VAT claims and tax planning
• Tax efficient equine sponsorship for corporates and competitors
• Tax planning & equine diversification - riding schools, tourism, polo, showjumping, dressage and eventing
• Horse dealing and ‘pinhooking’ tax planning
• The equine probate and divorce considerations
• The equine business and equine development land tax planning
• Allowing for private usage of horses in terms of VAT, income tax and capital taxes
• Tax treatment of haymaking for horses
• Opting to VAT on equine developments
• Sharkey v Wernher and the transfer to stud stock at market value
• Racing interaction with breeding and the stud operation
• Farm diversification and the equine operation, the Agriculture Act impact of “farming for the environment”
• Reduction of the £10 million BADR limit to £1 million - impact on the “Rollover Buyer” of converting a farm to a stud
• The importance of good books and records, strong MTD for VAT and superb trail of evidence on all equine clients - the change of “basis period” impact
• Impact of the abolition of Furnished Holiday Accommodation advantage in Budget 2024 but NOT in the Finance Bill! Impact on trekking/holiday operations

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.