The sale of a horse for VAT

Julie Butler FCA considers the VAT implications when selling a racehorse from shared ownership to applying the business economic activity test, particularly in light of the McMorris case

If a horse is sold by a sole trader who is in business with another activity, there may be a worry that VAT will have to be charged as the sole trader VAT registration could be seen as relevant to all business activities of the sole trader, including horse ownership.

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