Can you claim Animal Care Costs as a Business Expense?

So this is a question I was quite legitimately asked this week. The person concerned is about to buy a gun dog that will be an integral part of their business, so can you...?

A group of white faced shaggy sheep

If your business involves animals, you might assume that the costs of caring for them are tax-deductible. While that’s often true, the rules can be surprisingly nuanced. HMRC’s treatment of animal-related expenses depends on what role the animal plays in your business.

Farm Animals, are they Stock or Capital Assets?

Farm animals like cattle, sheep, or laying hens are typically treated in one of two ways:

- Stock: If the animals are bred and sold (e.g. meat production), they’re considered trading stock.

- Production Herds: If they’re kept for ongoing yield—like wool, milk, eggs, or honey—they’re treated as capital assets. It's important to note that a production herd includes animals of the same species used for the same purpose.

For example:

- A mixed-breed flock of sheep that are all kept for wool is treated as one production herd.

- Sheep of one breed for wool and another for cheese is treated as two separate herds.

Even bees in a hive are considered a “herd” if they’re kept for honey!

Working Animals

A pair of bay horses ploughing

Some animals either on a farm or indeed in other businesses aren’t part of the product that that the business sells but nonetheless perform an essential role. Examples of these types of animals include Sheepdogs, Horses used for ploughing, Gamekeeper’s spaniels as well as other gun dogs. Working animals aren't limited to the farm environment the Police and army have sniffer dogs, guard dogs and a great many horses too.

Such working animals are classed as capital assets and as such qualify for capital allowances.

Their care including food, grooming, and vet bills, are therefore a tax-deductible expense.

Black and white barn cat

Even less traditional working animals, like a cat controlling mice in a grain store, could be argued to qualify. Before you ask, yes I had great fun searching for the images for this blog post, who doesn't like looking at cute animals.

Guard Dogs

So this is where HMRC starts to make things a little tricky...

Guard dogs, especially in home-based businesses are often seen as pets by HMRC and as such the cost is non-deductible or only partly deductible. However if you can show that the dog is very clearly a working animal and not a pet you may be able to claim Capital Allowances on the purchase and deduct ongoing care costs. If the dog is a pet that also guards your home office you might be able to claim a portion of these costs.

Guide Dogs

HMRC offers little guidance on guide dogs or dogs in any helping role for that matter. These are generally considered a personal aid and no a business tool. However if your dog enables you to run your business for example by helping you to travel to see clients you may be able to claim some costs.

Animal Care Businesses

If your business is caring for animals, like a boarding kennel or cattery, then all related costs are fully deductible including:

Food

Vet bills

Bedding

Cleaning supplies

These are classed as core business expenses, just like stock for a shop.

To sum up

Animal related expenses can be, but aren't always deductible it very much depends on the role the animal has in your business. If you are in any doubt you should seek the advice of your Accountant. In any case ensure you keep detailed records and be prepared to justify your claim if challenged by HMRC.

Disclaimer

This blog reflects our understanding of tax law at the time of writing. Tax rules can change, and individual circumstances vary. Always seek professional advice tailored to your situation.

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