231 Profits or gains from stallion fees

Summary

This section provides that certain profits/gains arising to an owner or part owner of a stallion from the sale of services of mares within the State by the stallion, or from the sale of rights to such services (that is, stud fees or receipts from the sale of nominations) are exempt from income and corporation tax.

However, for chargeable periods commencing on or after 1 January 2004 details of all such profits, gains and loses must be included in the annual return of income to the Revenue Commissioners. The normal rules relating to the keeping of records and the making available of those records for inspection by the Revenue also apply. This relief ends on 31 July 2008.

Details

(1) The exemption from income or corporation tax applies to profits/gains arising to —

• the owner of a stallion which is ordinarily kept on lands in the State from the sale of services of mares within the State by the stallion,
• the part-owner of a stallion which is ordinarily kept on lands in the State from the sale of services of mares within the State by the stallion, or of the rights to such services, or
• the part-owner of a stallion which is ordinarily kept on land outside the State from the sale of services of mares by the stallion or from the sale of the rights to such services, where the part-owner carries on a trade in the State which consists of or includes bloodstock breeding and where the part-ownership of the stallion was acquired and is held primarily for the purpose of the service of mares owned or partly owned by the part owner of the stallion in the course of that trade.

(2) The provisions of the Tax Acts relating to the making of a return (section 951) by a chargeable person (section 950) apply—

• as if section 231(1) had not been enacted,
• as if a person who is in receipt of income for a chargeable period (section 321(2)) from this source were a chargeable person,
• as if any person who may have had a notice issued to them under section 951(6) (exemption from need to submit a return) had not been issued such a notice, and
• so as to oblige persons in receipt of income from stallion fees to keep records as if the income was chargeable to tax.

(3)(a) Profits, gains and losses are to be computed in accordance with the Tax Acts, ignoring subsection (1) (the provision giving exemption from tax).

(3)(b) Where a loss is made, then the amount of that loss is to be included in the return.

(4) The exemption from tax, provided for in this section, does not apply to income earned after 31 July 2008.

Relevant Date: Finance Act 2021