asked the Minister for Finance the special tax concessions which are available to persons involved with the bloodstock industry.
Written Answers. - Bloodstock Industry Tax Concession.
58.
I have been advised by the Revenue Commissioners that the special tax concessions available to the bloodstock industry may be summarised as follows:
Income Tax and Corporation Tax
Section 18(2) of the Finance Act, 1969, (as amended by section 14 of the Finance Act, 1985) exempts from income tax the profits or gains arising to the owner or part-owner of a stallion from the sale of services of mares by the stallion or to the owner or part-owner of a stallion from the sale of rights to such services, provided that the stallion is ordinarily kept on land in the State and that the servicing of mares takes place in the State. Likewise, a company may, in the same circumstances, be exempt from corporation tax by virtue of section 11(6) of the Corporation Tax Act, 1976.
The exemption is also applied to the part-owner of a foreign-based stallion where the part-ownership is acquired and held primarily for the purposes of the service by the stallion of mares owned or part-owned by that person in the course of a trade of bloodstock breeding carried on in the State.
Capital Gains Tax
Bloodstock are regarded as both tangible moveable property and wasting assets and, consequently, are excluded from capital gains tax under the provisions of section 18 of the Capital Gains Tax Act, 1975.
Value-Added Tax
Exemption from VAT applies to the supply and importation of horses and also to stud fees. Racehorse trainers are taxable only in relation to the training element in their fees which is taken to be 10 per cent of total fees. Jockey's fees are treated as not being taxable.