The tax implications when it comes to keeping horses

Income derived from horses is generally taxable save for two exceptions — namely where the activity is carried on as a hobby and income derived from horses in training

There is a misplaced assumption that income derived from horses is exempt from taxation.

This past Sunday’s Irish Derby reminded me of the Irish horseracing industry and the tax rules that uniquely apply to this industry.

The horseracing industry is estimated to be worth nearly €2.5bn to the economy when ancillary enterprises are considered. Horses and taxation are a bit of a minefield, with an underlying and often misplaced assumption that income derived from horses is exempt from taxation.