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
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.
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.
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 ..