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Animal valuations for tax purposes

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

Over the jumps


  • 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...

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