ATT Technical Officer The Association of Taxation Technicians
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Tax and horses: Reining in expectations

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Keeping horses and ponies can be a very expensive hobby, so owners often look for tax relief. Helen Thornley takes a canter through the tax rules to check when the deduction hurdles can be cleared.

6th Mar 2020
ATT Technical Officer The Association of Taxation Technicians
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While most horse-owners know not to expect tax relief for the day-to-day costs of keeping a horse or pony for leisure purposes, attempts have been made to use the ability to keep horses as a justification for expanding the land that qualifies for principal private residence relief (PPR) to beyond the basic permitted area of half a hectare.

In Longson v Baker, the taxpayer argued that PPR should apply to an area of land including stables and grazing because such facilities were required for the reasonable enjoyment of the property. The courts held otherwise, ruling that, while it might be beneficial for the equestrian-minded taxpayer to benefit from the larger area around the property, it was not objectively required for the enjoyment of the property by any other taxpayer.

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