The British Horseracing Board and the Thoroughbred Breeders Association have called on the Government to ease the tax burden on British breeders to help them compete more effectively with their counterparts in Ireland.
The proposal, submitted jointly by the BHB and the TBA, highlights the advantages enjoyed by Irish breeders, who in the main receive income from the sale of stallion nominations free of tax. The availability to reinvest their tax-free income in the acquisition of new stallions has been a major factor in enabling breeders in Ireland to increase their market share. It is now increasingly likely that new stallions will stand in Ireland, rather than England.
The submission to Government, which was prepared by a team from the BHB’s Taxation Group, lead by Philip Freedman of Cliveden Stud, calls for British breeders to be allowed to claim sharply increased tax allowances, in the year of purchase, against the cost of purchase of stallions and other breeding stock. The significant cash flow benefits arising from such allowances would further encourage re-investment by British breeders.
The submission includes the following statistics, which illustrate the relative growth of the Irish breeding industry.
* The number of mares covered in Ireland in 1997 rose by 31 per cent compared with 1996, in contrast to an overall decline of 1 per cent in the combined totals of Ireland and England.
* During the past 5 years, of the 12 stallions sold to stand at stud in Ireland and England with a nomination fee of £8,000 or more, only one was purchased to stand in England.
Copies of the submission are available from Stephen Atkin, BHB on 0171-343-3321 or Louise Kemble, TBA on 01638 661321.