Bloodstock tax rules to change
Minister for Racing Winston Peters today announced changes to bloodstock tax rules for the New Zealand racing industry as part of Budget 2018.
“Racing is a significant industry in New Zealand and this measure will provide economic stimulus to many parts of the country. The change will encourage new investment in the breeding industry to make it more financially attractive and increase the quality of this country’s racing stock,” says Winston Peters.
“The Budget allows $4.8 million over the next four years for tax deductions that can be claimed for the costs of high-quality horses acquired with the intention to breed.
“The previous rules around tax write-downs did not serve their original purpose of promoting new investment, as they favoured established breeding businesses rather than attracting new entrants.
“These changes mean that a new investor in the breeding industry will be able to claim tax deductions for the costs of a horse as if they had an existing breeding business. To qualify, the horse must be a standout yearling.
“Quality breeding is the life blood of the thoroughbred racing code. It also helps sustain an iconic New Zealand industry and ensures New Zealand horses can compete with the best in the world.
“I expect the new rules will apply to yearlings acquired from next year’s premier bloodstock sales,” says Winston Peters.