Set up equestrian or livery services on your farm

Guide summary

Hiring out horses for riding or instruction without a licence risks up to 6 months' imprisonment, an unlimited fine, or both
A listed vet must inspect before your licence is granted or renewed, and each year of the licence
Never leave the hire activity in the charge of anyone under 18
Do not hire out a horse under 3 years old, or a mare heavy with foal or with a foal not yet weaned
Ask your local planning authority before you commission plans for a yard, arena or building conversion
Livery with care at special-purpose stables, such as stud farms, is standard-rated for VAT
Take out public liability insurance for the licence, and display the certificate on the premises
Hold employers' liability insurance of at least £5 million if you employ anyone

These rules are for England.

What you need depends on one split: livery means keeping horses that belong to other people, and riding services means providing horses for other people to ride. Livery alone needs no licence. Riding services do.

Hiring out horses needs a licence

You do not need a licence for livery alone, for grazing, for teaching people on their own horses, or if your trading income from hiring out horses is below the trading income allowance.

Hire out horses licence (England)

Licensing requirements for riding schools, trekking centres and other businesses hiring out horses in England

You need a licence from your local council if you run a business in England hiring out horses for riding or for instruction in riding. This includes riding schools, horse trekking, pony riding parties, hunter hirelings, polo or polocrosse instruction, and pony and donkey rides. The Animal Welfare (Licensing of Activities Involving Animals) (England) Regulations 2018, made under the Animal Welfare Act 2006, have applied since 1 October 2018.

Activity licensed: Hiring out horses in the course of a business for riding or instruction in riding
Licence authority: Local council
Licence duration: 1, 2 or 3 years, set by the council
Licence fee: Set by the council
Inspection: By a listed vet before grant or renewal, and each year of the licence
Unlicensed hire: Up to 6 months' imprisonment, an unlimited fine, or both

Conditions you must meet

You hold a formal qualification, or have demonstrable experience and competence, in managing horses
You hold a valid certificate of public liability insurance covering injury to or death of any client, and any client's liability to others, and display it on the premises
The activity is never left in the charge of anyone under 18
Anyone hiring a horse is supervised by someone aged 16 or over, unless you are satisfied they can ride without supervision
You can bring all the horses on the premises under cover, with suitable storage for feed, bedding and tack
You keep a register of the horses, with each horse's passport and microchip number
You keep a daily record of each horse's workload
You do not hire out a horse under 3 years old, a mare heavy with foal, or a mare whose foal is not yet weaned
You display your contact details and fire and emergency instructions

A horse an inspector thinks needs veterinary attention cannot return to work until you lodge a vet's certificate with the council that it is fit for work.

Who cannot get a licence

You will not get a licence if you have committed an animal welfare offence or are banned from hiring out horses, selling pets, boarding cats or dogs, breeding dogs, or keeping or training animals for exhibition. You may not get one if you have committed other offences.

When you do not need one

The licence covers hiring out horses in the course of a business. It does not cover hiring out horses solely for military or police purposes, or for instructing university students on a recognised veterinary degree. Keeping horses at livery is not hiring them out, but a working livery arrangement, where you take part payment and may use the horse, needs a licence if the horse is hired out.

Hire out horses licence (England) (opens in a new tab)

Check planning before you build or convert

Planning permission for equestrian use

When keeping horses on farmland counts as agriculture for planning, and who decides applications for livery yards

You need planning permission for development. Development means building, engineering or other operations in or on land, or a material change in the use of buildings or land. Using land for agriculture, including as grazing land, is not development.

Development: Building or other operations, or a material change of use
Agriculture includes: Use of land as grazing land, and breeding and keeping livestock
Livestock includes: Any creature kept for food, wool, skins or fur, or for use in farming land
Who decides: Your local planning authority

Grazing land counts as agriculture, but the statutory definition of livestock covers creatures kept for food, wool, skins or fur, or for use in farming the land. Whether a livery yard, riding school, arena or the conversion of a farm building is a change of use or other development is for your local planning authority to decide, so ask it before you commission plans.

Keeping horses commercially (opens in a new tab)

Work out the VAT on each service

VAT treatment of livery services

How VAT applies to stabling, grazing and care packages for horses on a farm

The VAT on livery depends on what you provide. HMRC treats the right to use a stable exclusively as a right over land. It treats care of the horse, such as feeding and mucking out, as livery services on top of that.

Grazing rights only, with no care: Zero-rated as animal feed
Exclusive use of a stable, with no care: Exempt right over land, or standard-rated if you have opted to tax
Livery with care, horse has its own stable: Whole package exempt if the stabling is an exempt right over land and you have not opted to tax
Livery with care at special-purpose stables: Standard-rated, for example racehorse trainers, stud farms and schooling or breaking-in yards
Livery with care and no exclusive stable: Standard-rated, including any food provided
Feed supplied as part of care: Cannot be zero-rated as a separate supply

What counts as livery services

Livery services go beyond the right to occupy the stable. They include:

feeding, or turning the horse out to graze
mucking out and spreading straw or other bedding
worming and clipping
grooming and plaiting
taking responsibility for the horse's welfare, including arranging veterinary treatment

Clearly separate supplies, such as veterinary services, are not part of the package.

Grazing and care

Grazing rights are zero-rated as animal feed only where no care is supplied. Where grazing or other food forms part of a supply of care, the whole supply is treated as livery.

Riding lessons and horse hire

These are not livery. The VAT exemption for sporting services covers only eligible bodies that are non-profit-making, so a commercial riding business cannot rely on it.

Animals and animal food (VAT Notice 701/15) (opens in a new tab)

Sport supplies that are VAT exempt (VAT Notice 701/45) (opens in a new tab)

What you must insure

Insurance for equestrian businesses

Public liability insurance for hire-out horse licences and employers' liability insurance for farms and yards that employ staff

Hire-out licence: Valid certificate of public liability insurance, displayed on the premises
Public liability cover required: Injury to or death of any client, and any client's liability to other people arising from the hire
Public liability sum insured: No minimum set in the licence conditions
Employers' liability: At least £5 million if you employ anyone
Employers' liability fine: Up to £2,500 for each day you are not properly insured

A council will not licence a business hiring out horses in England unless it holds public liability insurance. The licence conditions describe what the policy must cover but do not set a sum insured, so check the amount with your insurer and your council.

If you employ anyone on the yard or farm, you must also hold employers' liability insurance from an authorised insurer. Display the certificate where employees can read it.

Industry approval

Livery yards can apply for certification or approval through industry bodies such as the British Horse Society or the Association of British Riding Schools, Livery Yards and Equestrian Centres. Ask your insurer whether approval changes your cover.

Keeping horses commercially (opens in a new tab)

Employers' liability insurance (opens in a new tab)

Legal basis

Primary legislation and key regulations

Animal Welfare Act 2006 Primary 2006 · UK-wide Value Added Tax Act 1994 Primary 1994 · UK-wide Town and Country Planning Act 1990 Primary 1990 · UK-wide ELCIA 1969 Primary 1969 · UK-wide Animal Welfare (Licensing of Activities Involving Animals) (England) Regulations 2018 SI 2018 · England Employers' Liability (Compulsory Insurance) Regulations 1998 SI 1998 · UK-wide

Browse UK legislation legislation.gov.uk

Official guidance

Sport supplies that are VAT exempt (VAT Notice 701/45) (opens in a new tab)

HMRC

Animals and animal food (VAT Notice 701/15) (opens in a new tab)

HMRC

Keeping horses commercially (opens in a new tab)

DEFRA

Hire out horses licence (England) (opens in a new tab)

DEFRA · England

Set up equestrian or livery services on your farm

Hiring out horses needs a licence

Check planning before you build or convert

Work out the VAT on each service

What you must insure

Legal basis

Official guidance

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