§ Lord Hoosonasked Her Majesty's Government:
Whether in order to help horse, cob and pony breeders they will allow all such animals sold to buyers unregistered for VAT to be sold VAT-free.
The Earl of CaithnessNo. To allow such selective treatment would breach the fundamental principle that VAT is a broad based tax on consumer expenditure. We have made it clear that the benefits of measures negotiated with the horseracing industry, including the registration of owners who are able to show a business intent, will be extended where appropriate to the non-thoroughbred sector.