Onwards and Upwards!
There are several different ways to own racehorses:
Sole ownership, as it sounds, involves owning the horse outright and is the simplest way of getting involved with racehorses. As the sole owner you will be responsible for all the expenses associated with owning a horse and you also receive all of the benefits – from selecting your horse and choosing a name to designing your own racing colours. When your horse runs, you'll go racing with complimentary badges for you and your guests. If your horse wins, you'll meet him or her in the winner’s enclosure and receive the trophy and prize money for his or her efforts. If your horse is sold you'll receive the profit from his or her sale, tax-free.
This type of ownership can consist of between two and 12 people jointly owning the horse. The racehorse, or racehorses, can run in a joint ownership name.
In a racing partnership, up to 20 partners jointly own the horse – reducing the cost per head to a very affordable level. Two members of the partnership must provide their details to the BHA. Partnerships are entitled to choose their racehorses’ names and the partnership colours, and complimentary race-day badges are also available when the horse runs. Prize money is shared between the partners and, as with sole ownership, any profit from the sale of the horse is tax-free.
There are three types of racing partnerships to consider:
The company's shareholders own the horse. It is a great way of advertising your company, provides fantastic opportunities for corporate entertainment and is a novel way of bringing company members and employees together. You can name a horse, or racehorses, after your company providing you buy a horse that is un-named. All expenses associated with the racehorses’ training and racing are paid out of the company's pre-tax income. If the horse is successful, the profit from his sale is subject to tax. This is a great way to use your taxes to advertise your business and create ties within your company!
These have become a very popular way of dipping your toe in to the world of racehorses. They are not an independent form of co-ownership, therefore by joining or becoming a member of a racing club you receive all the benefits of that club but without entering into racehorse ownership yourself.
For all enquiries regarding the ownership and training of racehorses, please contact David Menuisier on 07876 674095