VAT & Tax

TBA BLOODSTOCK TAX GROUP

The TBA Bloodstock Taxation Group is responsible for monitoring fiscal and related issues affecting British Thoroughbred breeders and the bloodstock Industry. Through liaison with HMRC and taxation advisers the Committee aims to ensure that the bloodstock industry’s interests are safeguarded and protected and advice on correct practice is disseminated.

In the short time since the Group was formed they have reviewed and updated the Bloodstock Industry Taxation Guide, which can be found on the TBA website along with further taxation advice.  The Group has successfully defended the Industry against the HMRC proposals to introduce a duty on imported yearlings from outside the EU.  This small Bloodstock Tax Group continues to monitor threats and opportunities for the Industry and is made up of just six industry professionals, all highly respected leaders in their field.

Peter Mendham

Peter is a member of the TBA Board and chairs the Taxation group. He is a VAT specialist and has been advising clients in the bloodstock industry for over 20 years. He currently also chairs the industry VAT group that oversees the operation of the Owners VAT Scheme.

Penelope Lang

Penelope is a Tax Director with Smith & Williamson.  She is a member of several professional bodies including the Institute of Chartered Accountants of Scotland.  She advises on all aspects of direct tax affecting breeders and trainers and is a List 1 Dressage Judge.

Robin Platt

Robin qualified as a Chartered Accountant in 1967 and commenced practice in 1970.  He is a consultant to Morley & Co.  Robin has specialised throughout in equine/rural sectors, providing personal/proactive advice.

Terry Dockley (CTA (Fellow))

Terry has his own VAT advisory company, Terry Dockley & Co, and has advised on VAT for over 20 years, writing the VAT and bloodstock chapter for LexisNexis and advising a wide range of bloodstock owners, breeders, trainers and charities.

Chris Kennard

Chris qualified as a Chartered Accountant in 1982 and has been the Finance Director of Shadwell Estate Company Limited since 1988.

Philip Freedman

Philip Freedman is the Bloodstock consultant for James Cowper LLP.  Philip is an ex TBA Chairman, has represented the TBA on industry tax groups since 1991 and is the owner of Cliveden Stud Ltd.

Bloodstock Taxation Guide:

The first edition of the Bloodstock Taxation Guide has been published on behalf of the Horsemen’s Group, and is available to TBA members in soft copy on the TBA website.  It is an indication of the changing face of the UK bloodstock industry that the Horsemen’s Group are the third different organisation to be associated with the Guide after the Horseracing Advisory Council and the British Horseracing Board.

However, taxation remains an important issue for all participants in the industry. It is a measure of the pace of change in taxation matters that the gap between editions of the Taxation Guide continues to reduce; it is only four years since the Guide was last produced but the new edition of the Guide shows a large number of changes – particularly in the VAT section.  The authors have tried to create a current tool for the Industry, through the use of direct links to the HMRC website.

The Guide is primarily focussed on the breeding and owning of racehorses but we have also included sections of specific interest to trainers and jockeys. We are grateful for the efforts of the National Trainers Federation – in particular Rupert Arnold and his team – and the taxation advisors to the Professional Jockeys Association of Great Britain (Terry Boothby of Griffins) in preparing and checking those sections, and for allowing them to be included in this Guide. Any questions regarding the content of these sections should be directed in the first instance to the authors.

As before, the main purpose of the Guide is to provide a general outline of the major direct tax and VAT issues to be considered by those working in the industry and their professional advisors. The Guide is not intended to provide a definitive answer to every tax query that may arise and the advice of a qualified practitioner should always be sought before acting on the information in the Guide.

As indicated above, we have had to deal with a large number of changes and I am indebted to my fellow members of the Thoroughbred Breeders’ Association Bloodstock Taxation Group for their efforts in producing the Guide.  Thank you therefore to Terry Dockley, Philip Freedman, Chris Kennard, Penelope Lang, Robin Platt and Louise Kemble.  Of course even with all the hard work put in by the members of the Group their contributions still need to be converted into the finished product. This has been done with skill, patience and understanding by Shelley Oxford of Smith & Williamson Ltd.

I hope you find the Guide useful.

Peter Mendham Chairman, Thoroughbred Breeders’ Association Taxation Group

To download the Bloodstock Taxation Guide (which has been updated) and for further articles and advice on taxation and VAT go to the Information and Downloads section of the website.