Do I need a License to Breed Leopard Geckos?

The law on this subject is... a little open to interpretation.

If your gross income from animal sales is below £1,000 in a 12-month period, you don't need a licence. Above that, whether you need one depends on whether HMRC's badges of trade suggest you're operating as a commercial business rather than a hobbyist.

But the reality is, very few people do.

I started breeding leopard geckos in 2019. For complicated reasons, I bred geckos as a limited company, Leopard Geckos London Ltd. Those who know me, or who read enough of my content, know I am an avid rule follower, so when I realised I was going to fit the criteria, I applied for my first licence.

What are the HMRC badges of trade?

These are 9 criteria HMRC use to identify hobbyists from businesses. Let's go through them and how they might apply to a breeder.

1. "Profit-seeking motive: An intention to make a profit supports trading, but by itself is not conclusive."

   
   

   Basically, do you intend to make money? Reinvesting everything back into the animals is not a loop hole here - your intent matters more than what you actually do with that money.

2. "The number of transactions: Systematic and repeated transactions will support ‘trade’."

   
   

   How many animals are you selling? Selling geckos every year, systematically and repeatedly would flag this badge.

3. "The nature of the asset: Is the asset of such a type or amount that it can only be turned to advantage by a sale? Or did it yield an income or give ‘pride of possession’, for example, a picture for personal enjoyment?"

   
   

   Can the asset be turned to advantage by sale? Essentially, are you breeding beyond what you would or could keep as a pet. A single pair or group you love and happen to sell offspring from, arguably no. A dozen pairs being bred each year, probably yes.

4. "Existence of similar trading transactions or interests: Transactions that are similar to those of an existing trade may themselves be trading."

   
   

   Do you have an existing trade this resembles? If you have a logo, a brand, a Morphmarket store packed with reviews, and a website - yes. This one is the main one that catches hobby breeders who professionalise their brands without thinking of the legal repercussions.

5. "Changes to the asset: Was the asset repaired, modified or improved to make it more easily saleable or saleable at a greater profit?"

   
   

   Selective breeding over multiple generations would probably be a reasonable interpretation of this - again it's more about intent. Selectively breeding to produce more valuable offspring rather than for personal interest.

6. "The way the sale was carried out: Was the asset sold in a way that was typical of trading organisations? Alternatively, did it have to be sold to raise cash for an emergency?"

   
   

   Things like paying a subscription and selling with a consistent brand on sites like Morphmarket would flag this badge. Deposit systems, good sales photography, branded certificates of pedigree all look very commercial.

7. "The source of finance: Was money borrowed to buy the asset? Could the funds only be repaid by selling the asset?"

   
   

   Less relevant for most breeders, but borrowing money to buy breeding stock, with the intention of selling offspring to repay the loan would be a red flag.

8. "Interval of time between purchase and sale: Assets that are the subject of trade will normally, but not always, be sold quickly. Therefore, an intention to resell an asset shortly after purchase will support trading. However, an asset, which is to be held indefinitely, is much less likely to be a subject of trade."

   
   

   Buying animals, and breeding them very quickly to sell offspring would point at trade activity.

9. "Method of acquisition: An asset that is acquired by inheritance, or as a gift, is less likely to be the subject of trade."

   
   

   Animals inherited or gifted are less likely to be trade. Buying animals specifically to breed, particularly if one goes to great effort to get specific, expensive animals - red flag.

There is no set number of badges one must meet to be classed as commercial. HMRC relies on heavily contextual interpretations, using badges as a guide. The gist is that intentions speak louder than profit, and if you feel you tick a few of these boxes, it is worth staying on the right side of the law.

If you're unsure, the best way to be sure is to write to your local licensing team. Explain your situation and they will advise whether or not you need a license. I was only licensed for 3 years, because in previous years I did not meet scope for a license and was told as much by the team - always get any responses in writing.

My situation now, having publicly stepped away from commercial breeding, mostly working to provide care content online, have 14 pet leopard geckos with no new arrivals in years - if I were to breed one pair and exceed the £1000 cap, it's likely I would not trigger enough badges to be classed as commercial anyway, despite previously being licensed.

What is an Animal Activities License?

An Animal Activities Licence, or AAL, is a legal requirement in the UK for many individuals and businesses that work with animals in some capacity. Your doggy daycare will have one, your local pet shop will have one, a local horse riding school will have one.

I can only speak as far as my experience specifically with pet shops goes (I was not open to the public but still classed as a pet shop), but the process is relatively simple.

1. You submit a form and some documentation to your local council.

2. You pay a set fee (this varies from £200 - £1500 dependent on your council)

3. The council sends a specialist over to inspect the animals living conditions

4. You are awarded a license ranging between 1 and 5 stars - first timers can only get up to 4 stars as license history is taken into account.

5. The licence is up for renewal in 2 - 5 years, where you must re-pay.

6. You are spot checked about once a year to ensure standards don't slip.

For me, this was fine. I got to talk the lovely inspectors’ ears off about enclosure sizes, lighting requirements, and how my business worked. They always had incredible anecdotes about the situations they inspected. I genuinely considered (and still hold as a job I would try should I ever want a change in career) becoming an AAL inspector, as the staff have always been a genuine delight to interact with, and obviously love their work.

I gained a 4 star, and then a 5 star license, but when I moved house I never renewed as I had decided to move away from breeding and back into the hobbyist way of keeping leopard geckos.

How did I achieve a 5 star Animals Activities License?

In all honesty, I achieved my 5 star licence by being a total nerd.

They are looking to tick some rigid boxes - there are specific guidelines on enclosure sizes and cleanliness. But the major points come from being able to show that you know the animals you work with, you provide care sheets and information to buyers, you keep good records and are mindful of bio security and exceeding welfare standards. 

I used Asana to track each individual - their sheds, health, and temperament scores, and updated photos, and where they ultimately ended up. When I tragically lost my much loved Eublepharis angramainyu, Rhapsody, to egg binding, an incident report with a full analysis of the situation was filed and subsequently shown to the inspectors at the next inspection. 

I engaged in self-development (this is a big one on their form!), ensuring I was a part of communities where research was being posted, and keeping a file on my Drive of PDFs and websites I periodically reviewed to ensure I was always up to date.

I had endless spreadsheets. They love it when you not only measure temperatures daily, but also write them down. At first I had a massive spreadsheet where I would keep these records. Eventually, I invested in smart WiFi thermometers with parameters set and that kept the data back for me - if a temperature dropped or spiked, I get an alert.

The secret to achieving a 5-star AAL is to be passionate about welfare, and a little bit insane with your spreadsheets. It’s not easy, but it is simple.

Rhapsody (1 year old E. angramainyu) and the incident report that was filed when she sadly prolapsed trying to pass an infertile egg - tragically common in this species.

Why do people not get Animal Activity Licenses?

The Animal Welfare (Licensing of Activities Involving Animals) Regulations 2018, or AAL, is a wonderful bit of legislation. It protects animals being used for profit by ensuring an independent third party inspects their living conditions regularly and deems them to be well cared for. Yes, the AAL does not have pet-level welfare standards - leopard geckos are not required to live in anything like the size or lighting complexity of a kitted-out vivarium - but their basic needs are met and often exceeded, they have access to vet care, and some forms of enrichment are mandatory.

However.

My main gripe with the AAL system is it disincentivises compliance and does not account for scale.

The fees charged by some councils are roughly fair. As of April 2026, Gloucester City Council charges around £370 all in [source].

Others are not. Sutton charges a staggering £1,246 - more than the entire gross income threshold that triggers the requirement in the first place. [source].

Screenshot from Sutton Council website, taken 19/04/2026

At my largest, I was breeding 50 to 150 leopard geckos a year, from parents with names, known personalities, and waxworms on their birthdays, out of the spare room of our flat. How is a hobbyist breeder doing small-scale, ethical work supposed to account for that?

A leopard gecko sells for an average of £150. The cost of sale sits at around £80 - and that already assumes the breeder can absorb the costs of licensing, rack systems (hatchlings generally cannot go straight into adult enclosures and need a controlled environment for their first two months - racks are both necessary and ethical at this stage), and the wider infrastructure, all of which runs into the thousands.

How is someone trying to offer an ethical alternative to chain pet stores - selling healthy, well-started animals with documented lineage - supposed to feel when the very system designed to support responsible breeding is adding a significant percentage to their cost of sale?

The financial impact is only part of it. When cost of sale is artificially inflated, harder decisions follow: vet care over euthanasia in emergencies, larger enclosures, keeping pet-only animals who cannot be re-homed quickly - it all becomes a financial strain as well as a welfare choice.

The system actively discourages exactly the breeders it should be encouraging, by holding a hobbyist in a spare room to the same financial standard as a chain pet shop turning over millions.

What is the solution?

I propose a fairer  system based on a sliding scale, where AAL fees are determined by:

• Annual turnover and / or animals sold per year

• Presence of paid staff members

• Inspection load on the council (my single room takes 1 inspector a few hours - a larger shop will take multiple inspectors multiple days)

• Welfare rating (discounts on renewal for 5 star holders.

This model would encourage higher welfare standards, without penalising hobby breeders.

The current model ultimately does not work. How many people who likely do trigger enough of the HMRC badges of trade when breeding puppies and kittens are licensed? Very few.

The council does not penalise unlicensed breeders unless activity is blatant - 150 leopard geckos is invisible to neighbors, but a litter of puppies is much harder to conceal - they simply are not made aware.

The AAL system could be a great thing, but it has not been built with small businesses or qualifying hobbyists even slightly in mind, and we are punished for following it.

Do you need an AAL to breed leopard geckos?

Yes, you do.

Does Leopard Geckos London have an AAL?

No, I do not. But I also will not exceed the £1000 cap, and if I ever did, I would promptly inquire as to whether I made scope for a license.

Do I think you should get a license?

Yes, but I also think voicing our concerns to local politicians, DEFRA, and anybody else who will listen is the only way to means test licensing fees. A small hobbyist breeder should not be held to the same standard financially as a million-pound corporation.

To learn more about AALs, please read: Selling animals as pets licensing: statutory guidance for local authorities

This post is specific to UK law and regulations, and is accurate as of publishing. Please contact your local AAL team if you have any questions or concerns - they will have the latest guidelines and in my experience, are delightful to interact with!