Racing Minister Winston Peters has announced the next steps to promote new investment in the horse bloodstock industry.
“Quality breeding is the life blood of the New Zealand racing industry. Better tax rules will encourage new investment in bloodstock breeding, and affirms the Government’s commitment to New Zealand’s racing industry to reach its full potential,” said Mr Peters.
“Cabinet has approved the final design of the bloodstock rules which were first signalled in Budget 2018.”
“Investors new to bloodstock breeding will be able to claim tax deductions for the cost of horses, even if they don’t own an existing horse breeding business. We expect this will encourage new entrants as the industry becomes more financially attractive,” he said.
“In order to be eligible for tax deductions, new investors will have to provide Inland Revenue with evidence that they intend to derive a profit from breeding high quality bloodstock. This way we know that we’re incentivising genuine entrepreneurial activity that improves the quality of the industry’s stock,” said Mr Peters.
The amendments will be introduced by way of Supplementary Order Paper to the Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Bill which is currently being considered by a Parliamentary select committee.
The legislation will be enacted in early 2019. It will have a retrospective start date of 1 January 2019. This means it will apply retrospectively to yearlings acquired at the New Zealand National Yearling sales series at Karaka in January 2019