Skip to main content

Racehorse Breeding

Volume 201: debated on Friday 20 December 1991

The text on this page has been created from Hansard archive content, it may contain typographical errors.

To ask the Chancellor of the Exchequer whether the conclusions of the ECOFIN meeting on 12 June 1991 are applicable to the British racehorse breeding industry.

Yes. The conclusions apply to all industries of EC member states.

To ask the Chancellor of the Exchequer if he will introduce value added tax rates on bloodstock sales similar to those charged in France on the basis of item 6 (Agricultural Inputs) in ECOFIN's list of services on which reduced value added tax rates may be charged.

Discussions on which goods and services will attract a reduced rate of VAT after 1992 are presently taking place in Brussels and no conclusions have been reached. Until these discussions are complete, it will not be known whether any EC member states will be able to introduce or keep a reduced rate for bloodstock. The Commission's current view is that racehorses do not fall within the list of goods and services which will qualify for a reduced rate of VAT.

To ask the Chancellor of the Exchequer what is the stated policy of the European Commission as regards whether the breeding of racehorses is an agricultural activity for the purposes of levying value added tax.

The European Commission views the breeding, rearing and care of all animals, including racehorses, as an agricultural activity falling within the activities which can be included in an agricultural flat rate scheme. The Commission's current view is that racehorses do not fall within the list of goods and services which will quality after 1992 for a reduced rate of VAT.