Stallion exemption costs €3m

THE cost to the Exchequer of exempting stallion fees from taxation is just €3 million a year, according to a major analysis of the thoroughbred sector.

Though the 390 stallions standing at stud in Ireland generate €85 million in income, the loss to the public finances is just €3m, while the wider thoroughbred industry contributes €37.5m in other taxes.

Stallions fees have been exempt from tax since 1969 and stud owners do not have to declare their incomes to the Revenue Commissioners. There were calls for the Government to scrap the exemption in the run up to the last budget.