Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Animal valuations for tax purposes

10 October 2017 / Julie Butler , Lucy Knighton
Issue: 4619 / Categories: Comment & Analysis
istock-155388695_fmt

Over the jumps

KEY POINTS

  • The importance of annual valuation of animals.
  • Stock valuations must be consistent and accurate.
  • Foals should normally be included in the valuation at cost.
  • Equine stock valuations can produce tax refunds.

The principal guidance from HMRC for equine stock is in HS232 Farm Stock Valuation 2017 and the Business Income Manual at BIM55710. For a stud farm to be treated as agriculture it must be carried out in conjunction with the occupation of the land whether freehold or leasehold. This is not the case if mares are boarded at stud for a keep fee and as such the mare owner is not carrying out an agricultural activity.

The valuation of stock is complex and the wrong workings can result in the incorrect calculation of profit or loss. Equine businesses should prepare an...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon