Bulletin
Bulletin
Budget
There were really no surprises in the Chancellor's recent Budget, but the following two reliefs will continue:-
Loss Relief
Losses incurred in 2009/10 can be carried back to earlier years. This will be of particular importance to those Bloodstock Breeders who were denied "sideways" relief under the five year farming rule.
We have until 5th April 2011 to make the election.
Capital Gains
The previous Budget outlined a standard rate of 18% as capital gains tax.
Nevertheless, there is a concession to apply "entrepreneurial relief" so that a rate of only 10% is payable. Contact us for more information.
VAT
The VAT threshold is increased to £70,000 for compulsory registration but, in the racing & breeding industry I see every advantage in opting for VAT status even if turnover is below that figure.
Other Points
Enterprise Investment Scheme
This Scheme allows taxpayers to claim a 20% free standing credit against their tax liability if they purchased shares in a qualifying company.
This will be most attractive to Racehorse Trainers who wish to move premises, or expand their yard, but need external finance.
This funding could come from existing patrons who wish to reduce their tax bill, to achieve later reward fro the growth of their trainer's business.
Imagine not having to go cap in hand to the bank.
Currency Exchange
Are the rates quoted by your bank the most competitive?
Did you know there are Currency Exchange Specialists working to provide a cheaper conversion for when you are acquiring stock or paying stallion nominations. Log onto equine Fx on our Helpful Sites page for more details.
Allied Irish Bank
I have recently organised a capital loan for an overseas client towards the purchase of a stud farm. This was from the Birmingham branch of AIB, who take a pragmatic view of the Breeding Industry, so perhaps I can help with your own borrowing plans.