Getting the right support for your agricultural business

Different businesses will have different tax issues to consider whether those issues relate to VAT, Income Tax, Capital Gains Tax, Inheritance Tax (IHT) or in some cases, all of these.

An example of this is an equestrian business, whose tax needs would depend on whether it is a diversified part of a larger family business, simply letting land for grazing or a full livery yard providing services to the horse owners.

If we firstly look at VAT, the provision of grazing is the supply of animal feed and therefore zero rated and the provision of stabling is the supply of land and buildings, which are exempt. However, the supply of services such as feeding, turning out, or exercising is standard rated. So how do you deal with a single supply that includes all these elements? And how does it impact on the input VAT you can recover?

The value of the assets used in running an equestrian business may be substantial and you will want to ensure relief from IHT is available on death. If you are running a business, it is reasonable to assume that you should get Business Property Relief (BPR). However, if you are not providing livery services, then you are only letting land and buildings and may not qualify for relief.

There are no clear answers to some of the issues mentioned here and this highlights the importance of seeking advice from a specialist. We can offer advice on all aspects of tax and have knowledgeable experts who can provide reliable solutions that will suit your business. If you’d like to discuss your circumstances, please get in touch with our EQ Agriculture team by calling one of our offices or by emailing agriculture@eqaccountants.co.uk.

Alternatively, if you would like advice on any tax related issues affecting your agricultural business, please email our EQ Taxperts.