Budget Changes

There are restrictions on the amount of Loss Relief that is available to reduce income tax, which could affect all bloodstock breeders.

Trading losses no longer automatically attract sideways relief against other income in the year, but only to a certain limit.

We therefore need to constantly rationalise, by careful assessment of stock values, in order to maintain an advantage.

Success

We recently negotiated an Inland Revenue assessment down from £750,000 to just £23,000.

An Owner had purchased racehorses (and paid their training fees) through his manufacturing company.

The tax office had treated all payments as a “Director’s Benefit”, whereas we successfully argued that they were for the progress of trade.

Enterprise Investment Scheme

We obtained Inland Revenue approval for a bloodstock operation in Oxfordshire, by producing the right prospectus to follow EIS rules and by solid negotiation with the specialist tax office.