VAT recovery in relation to bloodstock
In general, the recovery of VAT in the bloodstock industry is subject to the normal rules for input tax recovery (although see below for racehorse owners registered under the Owners' Scheme). Input tax is covered generally at Division V3.4. Importantly for owners of bloodstock, VAT will only be recoverable where used or to be used for the purpose of any business (see 'Business/non-business and the bloodstock sector' at V6.140. A number of specific areas that can give rise to difficulties are highlighted under the headings that follow.
VAT recovery under the Owners' Scheme
The Registration scheme for racehorse owners (Owners' Scheme) is introduced at V6.140 and explained at greater length at V2.118. Those registered under the scheme may recover VAT incurred on the purchase, training and upkeep of a racehorse put to training, including tax incurred during any period when it is unable to run due to injury provided there is an expectation it will run in the future. HMRC states that all other VAT
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Web page updated on 17 Mar 2025 14:51