Katie Price is dealt another blow as her favourite horse 'is taken away by bailiffs from her Mucky Mansion until she repays her debts'

Katie Price has been hit by another devastating blow amid her battle with bankruptcy, as her beloved horse has reportedly been taken away by bailiffs.

The reality star already owes thousands of pounds in unpaid tax, and neighbours are now claiming her beloved steed Wallis has been taken away until she repays her debts.

Katie purchased her horse for £250,000 back in 2009, and regularly shares snaps of him on social media.

But neighbours claimed that the animal has since been seized, along with another horse.

They told The Sun: 'Katie's neighbours said they believed Wallis has been taken by the bailiffs along with another horse she has.

'They haven't been seen for a while now and they said they have been telling people they have been taken as part of HMRC's action to try and get back money.

'Wallis is Katie's pride and joy so if this is true she will be devastated.'

MailOnline has contactes a representative for Katie Price for comment.

It was revealed last week that Katie is being chased by HMRC for £760,000 in unpaid tax.

Court papers reveal the huge cash demand from HMRC who have petitioned to make her bankrupt.

Katie, 45, is due in court next month in the battle which threatens her £2million Mucky Mansion in Sussex.

HMRC claim Katie owes thousands in unpaid tax, VAT and late payment penalties.

Court paperwork said: 'The debtor is justly and truly indebted to us in the aggregate sum of £761,994.05.' 

It said there had been a 'failure to comply with a statutory demand for a liquidated sum, payable immediately.'

The bulk of the debt is a claim of £535,700 in unpaid self-assessment tax or national insurance plus more than £40,000 in late payment fines.

But she also owes more than £140,000 in missing VAT payments plus almost £10,000 in VAT surcharges.

The paperwork is dated in November 2023, but the case has been adjourned until at least March this year.

Katie was served with the payment demand in October but paperwork said it has not been complied with.

The document said the £761,994 claim is for a ‘liquidated sum’ implying she might have to sell property or investments to free up cash.

It added: 'To the best of our knowledge and belief the demand has neither been complied with nor set aside.'

Last month, Katie dodged a bankruptcy court hearing for the sixth time over a £3.2million debt repayment.

The reality star was due to appear at an insolvency court in London next month, but her case has now been adjourned until the end of April, reports The Sun.

Her court hearing has been rescheduled multiple times in a bid to bring the insolvency case to an end.

In the wake of her lengthy monetary woes, the television personality will have to answer questions about her finances.

She was declared bankrupt in 2019 with debts of £3.2m from her failed company Jordan Trading Ltd, which was set up to oversee her perfume and cosmetics line.

Katie had been due to explain to a judge details of her income from her TV work, including a Channel 4 show documenting the renovation of her £2m country home.