ITBA seeking to help small breeders with Budget Submission 2020
Four proposals put forward for consideration by the Irish government
Four proposals with the aim of supporting the small breeder in Ireland have been put forward by the Irish Thoroughbred Breeders' Association (ITBA) for review and consideration by the Irish government.
In its '', the ITBA ranked the proposals in order of priority for its members, and while asking that each proposal be considered individually, it also suggested two or more of the proposals could work in conjunction with each other.
The first proposal asks that from January 1, 2020, homebred fillies or fillies purchased in training would transfer back into breeding stock at their market value at the time of transfer, so that when selling a filly or mare as a broodmare prospect, mare owners would be able to offset the increase in value against their taxable profits.
For the proposal to work, a professional valuation or benchmarking would need to be done on the date of transfer by approved bloodstock auctioneers.
The second proposal suggests that from November 1, where a mare is purchased for purely breeding purposes, the original cost of this mare should be allowed as a deduction against the breeder's income over four years, similar to the relief in place in Ireland for stallion depreciation.
The third proposal recommends that where a breeder re-invests taxable sales proceeds from the sale of breeding stock into the purchase of a new broodmare with 24 months, a full deduction for this re-investment plus an additional €10,000 could be taken in the year of assessment.
Breeders would still be allowed to choose between the full re-investment option, the depreciation option from the second proposal, or the lower of cost or net realisable value.
The third proposal would apply to maximum of three mares per annum with a minimum cost value of €10,000.
The fourth and final proposal applies to small breeders with six or less mares, and would grant them tax relief on the initial profit earned on the sale of breeding stock.
Annual income tax credits of up to €5,000 would also be given to any investor meeting a set of qualifying criteria.
The ITBA suggests the proposal would promote breeding, selling and attracting new people to the industry.
The 16-page submission was prepared by the ITBA with the assistance of Grant Thornton Ireland following a comprehensive industry consultation process.
Read the submission:
Irish Thoroughbred Breeders' Association: Budget Submission 2020
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