Horses for personal use on agricultural land

[z5morg]

Hi,

Just after a bit of advice please, we currently have one horse on our farm for family use, we are looking at getting a pony for our children but family members have voiced concerns regarding tax relief on the land. Does anyone have any knowledge on this subject? As said they are our own horses on own land and no money exchanges hands for them.

Thanks

 

[Dry Rot]

Broadly speaking, I don't think there will be tax relief if the horses are "amenity". In Scotland, some breeds are considered "agricultural" (Shetlands, Highlands, and Clydesdale) and if ised for "working the land". Grazing horses is agricultural, though it is always up to debate. Grazing racehorses, I believe, has been argued to be amenity. The courts will decide on the balance of evidence. Simply grazing horses, like cattle, and perhaps breeding, is surely agricultural.

Having lots of coloured jumps, expensive stables, and groups of lycra clad youngsters riding on your property is more like to be amenity. I would think a pony used by a shepherd to 'look' his sheep every day would surely be agricultural. That is as much I have discovered and I suggest it would be the strength of the particular argument and how much your barrister charges!

 

[L P]

Hi,

Just after a bit of advice please, we currently have one horse on our farm for family use, we are looking at getting a pony for our children but family members have voiced concerns regarding tax relief on the land. Does anyone have any knowledge on this subject? As said they are our own horses on own land and no money exchanges hands for them.

Thanks

Should be above board if they belong to you whether on loan or owned, livery can count as mixed use, but anyone into livery in a big way probably needn't worry about apr vs bpr.

 

[DrWazzock]

Just hitch it to a plough now and again.

 

[FMF74]

Use it for checking crops, make a note of every time you use it and the cost of running it

 

[Werzle]

Hi,

Just after a bit of advice please, we currently have one horse on our farm for family use, we are looking at getting a pony for our children but family members have voiced concerns regarding tax relief on the land. Does anyone have any knowledge on this subject? As said they are our own horses on own land and no money exchanges hands for them.

Thanks

Who is going to check you have had a family pony at some point, its nonsense to even be thinking about it as a problem. Majority of farmers would have had a horse at some point for the wife or kids etc. Dont tick any boxes on farm surveys saying you have one.

 

[yellow belly]

Many years ago after had a tax investigation
all they found was a vets bill for sisters horse so they then asked about hay and grazing

half an acre declared as own use for the horse should not be a big issue declare a bit of rent

 

[Still Farming]

Plenty of horses on farms

 

[Dry Rot]

This link might help: http://planninglawblog.blogspot.com/

 

[neilo]

Surely everyone who has horses on the farm use them for checking stock, crops, etc, just the same as they might use a quad?

 

[essexpete]

I cannot think the ownership and keeping of a horse for private use on a farm can have any future tax implications other than the spurious claiming of anything to do with the horse as a business expense.

 

[Farmer Roy]

 

[Bury the Trash]

Phil probably has got the balance right.

 

[Wooly]

Hi,

Just after a bit of advice please, we currently have one horse on our farm for family use, we are looking at getting a pony for our children but family members have voiced concerns regarding tax relief on the land. Does anyone have any knowledge on this subject? As said they are our own horses on own land and no money exchanges hands for them.

Thanks

Basically your family members don't want another horse on the land !


Are we talking a 5 acre 'farm' or a few hundred acre farm ?



(P.S. Make sure said horse doesn't die in the stable. That brings a different level of problems ! )

 

[Kentishfarmer]

Hi,

Just after a bit of advice please, we currently have one horse on our farm for family use, we are looking at getting a pony for our children but family members have voiced concerns regarding tax relief on the land. Does anyone have any knowledge on this subject? As said they are our own horses on own land and no money exchanges hands for them.

Thanks

My understanding is that in terms of IHT the farm and business will be viewed in the whole. So if your a 500 acre farm, no diversifications and you've got 5acres as a horse paddock for your own use it won't affect anything IHT tax wise its clearly still a farm.
If say you have 50 acres maybe it it's isn't a viable stand alone unit and 10acres of that is for horses HMRC should start asking questions as to whether it is an Agricultural property/business or if it becomes leisure and amenity and so will question if you should be getting relief

 

[BRB John]

How hard would it be to hook a rake or tedder onto a horse?
Or a sledge to pick up and drop off hay bales?

 

[Bury the Trash]

well the Amish seem to manage it