profit on bloodstock subject to tax?

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oaky8

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i bought a mare about 2 years ago from england for about 10k and it won 2 small races and it is very well related to a very good horse and i decided to sell it in a recent sale and it made 125k so if i take this money off my mortgage of 170k is that allowed or do i have to pay cgt or income tax or is it tax free its a tough question and will give a donation to askaboutmoney if i get a good true response
 
Re: Experts help me . this is a good one

I thought profit on bloodstock sales was tax free, but I have no experience with it. Ring Goffs and you will get a simple answer immediately if you don't get one here.

What you do with the money, makes no difference.

Brendan
 
oaky8 said:
will give a donation to askaboutmoney if i get a good true response
Click to expand...

You might be better off making a donation to a good tax advisor. The amount of money you are talking about is much too large for you to be depending on hearsay or second-hand advice. The matter may or may not be more complicated than you think. For example, are there VAT issues?
 
would this be exempt from cgt as it is a 'wasting chattel', thus it's only if the frequency of such transactions is such that the revenue would consider it a trade that the transaction would be taxable, and that tax would be income tax.
Definitely see an accountant on this one though as it can be a complicated area.
 
thanks for the replies there is a vat implication applied at 4.8 per cent will try and contact an accountant or goffs today. i think horse winnings is tax free and staillion fees are too. but am afraid it is a capital gain so will have to investigate.
 
Once the horse was in training then there is no tax on it be it winnings or through the sale of it.

If the horse was not in trainin and sold out of the field then it is liable to Income tax

I spoke to an accountant lately about the same issue and that was the reply. He wasn't too sure though.

If you find out any more please let us know.
 
just left a small donation to askaboutmoney.com because it is truly a great source of information and have used the service before and will be using it again so great value . when i get the answer to this thread will post it soon.
 
thanks for your interest just got news today that it is tax free once the horse ran on a racecourse and it did and won twice so im very happy . my accountant wasnt able to answer this but my source is very good. hope this helps u out ..
 
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