The VAT scheme was originally agreed between H. M. Revenue and Customs and the racing and breeding industries in 1993. Owning racehorses then became significantly more affordable by allowing racehorse owners to register their racing activity as a business for VAT purposes, and consequently reclaim VAT.
As a rule of thumb, the cost of keeping one racehorse in training is around £18,500 per year. The bulk of these costs will incur an additional element of VAT, which owners registering under the scheme reclaim.
The scheme, which runs in conjunction with sponsorship agreements, is estimated to be worth at least £25 million of reclaimed VAT to the Racing Industry.
Did you know...
you could save around £3,700 per horse per year, by registering for VAT? This is in addition to the VAT that may be reclaimed on the original purchase price of the horse!
For more information about Weatherbys’ VAT Return Service (VRS) click here.
For details of how to register, or if you have any further queries, please ask for the Sponsorship and VAT team.
Tel: 01933 440077