The question whether British racehorse trainers must pay VAT when their apprentice jockeys take part in races remained unresolved today after a High Court ruled there should be a fresh inquiry into the issue.
Trainers around the country could have millions of pounds clawed back from them in tax if they eventually lose the case.
The Commissioners of Customs and Excise had asked a judge to rule in a test case that West Country trainer Ron Hodges was liable for VAT on fees from owners employing his stable lads in races.
The Commissioners challenged a Bristol VAT tribunal decision in November 1998 that Hodges was not liable.
Today Mr Justice Moses, sitting in London, ruled that the tribunal had made errors of law - but he was unable to say that was conclusive of the case.
He allowed the Commissioners' appeal to the extent of ordering a fresh hearing before a differently constituted tribunal so that the issues could be re-examined in the light of his judgment.
Hodges and his wife Amanda have stables at Cedar Lodge, Charlton Adam, Somerton, Somerset.
Their big winners include Canio (Coral Golden Hurdle Final 1984), Hanakham (Sun Alliance Chase 1997), Hard To Figure (Ayr Gold Cup 1993), Teletrader (EBF Novice Hurdle Final 1987) and Wayward King, who runs in the Racing Post Chase at Kempton Park tomorrow.
Jeremy Wood, solicitor for the Hodges, said outside court: "We are back in limbo.
"The Commissioners have won their appeal, but they have not won the case which now goes back to another tribunal."
