Taxes Consolidation Act 1997 section 231

Profits or gains from stallion fees

Section 231 provided an exemption from income tax and corporation tax for profits or gains arising from stallion stud fees and the sale of nomination rights, subject to reporting obligations. The exemption ceased to apply to any profits or gains arising after 31 July 2008.

• Profits from stallion service fees (stud fees) and the sale of nomination rights were exempt from income tax and corporation tax for owners and part-owners of stallions, subject to certain conditions depending on whether the stallion was kept in or outside the State.
• Despite the exemption, all profits, gains and losses from stallion fees had to be reported in the annual tax return, and normal record-keeping and inspection obligations applied as if the income were fully taxable.
• Profits and losses were computed under normal tax rules as though the exemption did not exist, and any losses incurred had to be included in the return for the relevant period.
• The exemption ceased to apply to any profits or gains arising after 31 July 2008, meaning all stallion fee income earned from that date onwards is fully chargeable to tax.