Budget Changes

There are new restrictions on the amount of Loss Relief that is available to reduce income tax. This cap could have an astounding effect for all bloodstock breeders.

Trading losses no longer automatically attract sideways relief against other income in the year, but only to a certain limit, with the balance carried forward to offset future profits when made.

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

Regional Employer NIC Holiday

Some employers will be excused twelve months’ National Insurance contributions for their staff, if business started after June 2010.

If you are in a qualifying region, the saving could be up to £6,000.

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

New incentives have been introduced giving tax relief to those who invest in bloodstock trading companies.

Our firm can help investors by giving advice on their tax affairs, and can help the organisers by ensuring HMRC approval to the scheme.

We can then provide ongoing independent financial reviews to all parties.

Contact us for full details.