Taxes Consolidation Act 1997 section 669H

Charging provisions

Section 669H provides that profits or gains arising from stallion stud services are chargeable to income tax or corporation tax, with the basis of charge depending on whether the owner carries on a farming trade.

• From 1 August 2008, an owner or part-owner of a stallion is chargeable to income tax (or corporation tax, if a company) on income from stallion stud fees.
• Where the owner carries on a farming trade chargeable under Case I of Schedule D, stallion income is treated as part of that trade and taxed accordingly.
• Where the owner does not carry on a farming trade, stallion income is chargeable under Case IV of Schedule D.
• Any amount chargeable under section 669I(3)(c) (woodlands) follows the same basis of charge as the stallion income itself.