Bloodstock & Tax – Options for Involvement in Breeding and Trading
When we launched Owners for Owners as a completely different way of organising racing partnerships we had no way of knowing whether the whole approach would succeed or not. Well, two years on, with eleven horses already and a strong network of really enthusiastic owners, it has certainly exceeded our expectations. We intend to carry on with the current model, and will be buying more National Hunt and Flat horses in the years to come. However, we are also now exploring other options for owners and investors to become involved in both breeding and trading of racehorses.
Purchasing High-Quality Fillies and Mares
As the European economies come out of recession the demand for high-quality bloodstock is accelerating again. Recent sales have seen very big increases in prices, particularly on the Flat but also for National Hunt stock. It is likely, going forward, that Owners for Owners will purchase more fillies, not just for racing but also for sale at the end of their careers (hopefully with their value enhanced) as well as for breeding. A number of our owners are particularly interested in being involved in breeding.
Enterprise Investment Schemes (EIS)
These schemes have been available for some time, and provide considerable tax benefits for investors. HM Revenue & Customs provide very clear guidelines on eligibility and there are a number of EIS schemes now in place for thoroughbred breeding. There are several schemes also in the pipeline involving the buying and trading
of young horses, particularly exceptionally bred fillies (both on the Flat and for National Hunt) and also store horses (National Hunt). We have been keeping a watchful eye on developments in this area and are exploring the implications of setting up an EIS bloodstock business specialising, initially, in National Hunt broodmares but also potentially for the Flat.
Becoming an Investor and Discussing Options
We believe that there are a number of innovations worth exploring that could both be very successful from the racehorse owner experience but also lend themselves to longer-term investment in vehicles with tax mitigation potential in line with HMRC regulations. If you would like to have a confidential discussion about any of this, please contact Jon Hughes on 01451 850780 or by email on email@example.com
HM Revenue & Customs Click here to access an HMRC overview for potential investors in an Enterprise Investment Scheme (EIS).