Agriculture & Farming

Set up equestrian or livery services on your farm

How to comply with VAT, licensing, and insurance requirements when offering livery, riding lessons, or equestrian facilities. Covers VAT treatment, riding establishment licensing, and specialist insurance needs.

UK-wide
Guide summary

If you offer horse services on your farm, you need to understand VAT rules, planning permission, and insurance. Riding lessons and horse hire need a licence. Make sure to tell your insurer about any new activities.

  • DIY livery is VAT exempt, part or full livery is 20% VAT
  • Riding lessons and horse hire are 20% VAT
  • Apply for a Riding Establishment Licence if you offer riding for payment
  • Get planning permission for new buildings or changes of use
  • Inform your insurer about all new farm activities, it's very important
  • Employers' Liability insurance is mandatory if you have staff
  • Public Liability insurance is highly recommended, minimum £5 million
  • Check if you need to pay business rates for commercial activities
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UK-wide

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Farm equestrian diversification includes livery services, riding schools, trekking, and competition facilities. VAT treatment and licensing requirements vary depending on what services you offer.

The key distinction is between livery (keeping horses for others) and riding services (providing horses for others to ride). Livery alone doesn't require a licence; riding services do.

VAT for equestrian services

VAT summary by service type

  • DIY livery: Exempt (letting land for grazing)
  • Part livery: Standard-rated (significant additional services)
  • Full livery: Standard-rated (comprehensive care package)
  • Riding lessons: Standard-rated
  • Horse hire/trekking: Standard-rated

If you provide mixed services, you may need to apportion VAT. Keep clear records of what each customer is paying for.

Riding establishment licensing

When you need a licence

You need a riding establishment licence if you:

  • Offer riding lessons (even informal ones for payment)
  • Hire out horses for riding
  • Offer pony trekking
  • Provide horses for shows or competitions for hire

You do not need a licence for:

  • Livery services only (no riding instruction or hire)
  • Grazing agreements
  • Horse training where you ride the horses yourself

In England, hiring out horses has been licensed under the Animal Welfare (Licensing of Activities Involving Animals) (England) Regulations 2018 since 1 October 2018 - licences carry a 1 to 5 star rating, last 1, 2 or 3 years, and require inspection by a veterinary surgeon on the statutory list. The Riding Establishments Acts 1964 and 1970 now apply only in Wales and Scotland.

Insurance requirements

Minimum cover recommendations

  • Public liability: £5 million minimum, £10 million recommended
  • Employers' liability: £5 million legal minimum if you have staff - £10 million is typical of standard policies
  • Professional indemnity: If providing instruction
  • Horse mortality/vets fees: For horses you own
  • Tack and equipment: Cover for saddles, bridles, etc.

Standard farm insurance rarely covers equestrian activities. You'll need specialist equestrian business insurance.

Planning permission

Equestrian use is generally considered compatible with agricultural land, but significant developments may need permission:

  • Arenas: Usually need planning permission
  • Permanent stabling: May need permission depending on scale
  • Change from agricultural building: Needs permission
  • Field shelters: Often permitted as agricultural development