Bulletin
Bulletin
Budget
There were some hidden advantages in last year's budget:
Loss Relief
Losses incurred in 2008/9 can now be carried back to earlier years. This will be of particular importance to those Bloodstock Breeders who were denied "sideways" relief in 2007/8 under the five year farming rule.
We have until 5th April 2010 to make the election.
Capital Gains
The budget took away "business taper relief" whereby a 75% reduction could be applied to gains from the sale of assets. This was replaced by a standard rate of 18% as capital gains tax.
Nevertheless, there is now a concession to apply "entrepreneurial relief" so that a rate of only 10% is payable. Contact us for more information.
Other Points
Enterprise Investment Scheme
This Scheme allows taxpayers to claim a 20% free standing credit against their tax liability if they have 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 from 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.
TBA Seminar
I attended the recent TBA seminar on the future of British racing.
Andrew Crichton of Weatherbys Bank gave a useful synopsis of why the country has suffered a Credit Crunch.
The talk from Grant Pritchard-Gordan was simply brilliant, all about the current attitude to breeding costs, and how to plan for profit. His firm is called Badger Bloodstock and anyone involved in the Industry would do well to seek advice.
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, so perhaps I can help with your own borrowing plans.