Bloodstock tax changes in Budget

Minister for Racing Winston Peters has announced changes to bloodstock tax rules for the New Zealand racing industry as part of Budget 2018.

‘‘Racing is a significant industry in New Zealand and this measure will provide economic stimulus to many parts of the country,’’ he said.

‘‘The change will encourage new investment in the breeding industry to make it more financially attractive and increase the quality of this country’s racing stocks.

‘‘The Budget allows $4.8 million over the next four years for tax deductions that can be claimed for the costs of highquality horses acquired with the intention to breed.

‘‘The previous rules around tax write-downs did not serve their original purpose of promoting new investment, as they favoured established breeding businesses rather than attracting new entrants.

‘‘These changes mean that a new investor in the breeding industry will be able to claim tax deductions for the costs of a horse as if they had an existing breeding business.

‘‘To qualify, the horse must be a standout yearling.

‘‘I expect the new rules will apply to yearlings acquired from next year’s premier bloodstock sales.’’

RECORD BREAKERS Meanwhile Cambridge trainers Murray Baker and Andrew Forsman have gone to another level this season.

They produced Electrode for a convincing victory at Tauherenikau yesterday to post their 115th success of 2017-18 and surpass the national record they set last season of 114 winners.

The previous best mark was the now Sydney-based John Sargent’s 111 tally in the 2012-13 season.

Baker and Forsman have won 16 Group or Listed races this term on their way to stable stake earnings of more than $3.9 million.

NZ Racing Desk