HORSE Racing Ireland, sales companies and racehorse trainers will lobby for the introduction of a VAT registration scheme for racehorse owners.

The campaign has been launched on foot of this week’s Budget which saw the VAT rate on racehorse purchases jump from 9% to 13.5%. The rate was only 4% before 2015, when it was changed to bring Ireland into line with other EU countries.

From January 1st, a private individual who buys a horse in Ireland with the intention of racing it here will be forced to pay 13.5% VAT on top of the purchase price. When the VAT on racehorses went up from 4% at least one major owner stopped putting his Irish racehorse purchases in training in Ireland.

In Britain the VAT rate on racehorse purchases is 20% but for the past 25 years racehorse owners have been able to claim back the VAT under a sponsorship scheme administered by Weatherbys and the British Horseracing Authority.

Brian Kavanagh, chief executive of Horse Racing Ireland, said: “It was a very good Budget for racing overall but the VAT was a bit of a sting in the tail. It was supposed to be a Brexit-proof Budget but the VAT increase encourages people to put their horses in training in Britain. We have looked in the past for a similar VAT registration scheme for racehorse owners to that which exists in Britain and we will again engage with the Departments of Finance and Agriculture on this.”

Henry Beeby of Goffs, Matt Mitchell of Tattersalls Ireland and Michael Grassick, chief executive of the Irish Racehorse Trainers Association, are all backing the campaign to allow Irish owners claim back VAT. The Association of Irish Racehorse Owners is also on board, according to manager Aiden Burns.

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