Taxes Consolidation Act 1997 section 669I

Provisions as to deductions

Section 669I provides for the write-off of expenditure on acquiring a stallion over four years, and sets out the tax treatment where a stallion is disposed of or dies.

• A stallion owner may deduct 25% of the stallion's initial value in each of four consecutive chargeable periods, starting from when the stallion is acquired for or appropriated to stud activities (or from 1 August 2008 for stallions already at stud on that date).
• Where stallion income is taxed under Case IV of Schedule D rather than Case I, the computation is carried out as if the income were chargeable under Case I, thereby allowing trading-style deductions such as upkeep expenses.
• If a stallion is disposed of or dies, the annual 25% deductions cease and a single deduction equal to the residual (unwritten-off) value of the stallion is allowed instead.
• The full proceeds of a disposal or death are chargeable to income tax or corporation tax, and where the actual proceeds are less than open-market value, the market value is substituted.