½Û×ÓÊÓƵ

Introduction

The bloodstock industry is that of thoroughbred horses bred for racing. The bloodstock industry faces a number of VAT challenges and peculiarities. It is also affected by several administrative agreements entered into between industry representatives and HMRC which are published in Notice 700/57. Particular challenges can arise from the international nature of the sector with horses often moving around key racing countries. This paragraph considers the liability of supplies typically made by a number of different types of person in the sector. As part of this, it also considers when the ownership of bloodstock will be seen as a business activity for VAT and place of supply considerations which are pertinent to the sector. V6.141 looks at VAT recovery in respect of bloodstock and other practical points for those who own and deal with bloodstock.

Business/non-business and the bloodstock sector

Business activities and the Owners' Scheme

In response to historic difficulties in establishing whether a racehorse owner has a business activity, a Memorandum of