Revenue Note for Guidance
This section provides that certain profits/gains arising to an owner or part owner of a stallion from the sale of services of mares within the State by the stallion, or from the sale of rights to such services (that is, stud fees or receipts from the sale of nominations) are exempt from income and corporation tax.
However, for chargeable periods commencing on or after 1 January 2004 details of all such profits, gains and loses must be included in the annual return of income to the Revenue Commissioners. The normal rules relating to the keeping of records and the making available of those records for inspection by the Revenue also apply. This relief ends on 31 July 2008.
(1) The exemption from income or corporation tax applies to profits/gains arising to —
(2) The provisions of the Tax Acts relating to the making of a return (section 951) by a chargeable person (section 950) apply—
(3)(a) Profits, gains and losses are to be computed in accordance with the Tax Acts, ignoring subsection (1) (the provision giving exemption from tax).
(3)(b) Where a loss is made, then the amount of that loss is to be included in the return.
(4) The exemption from tax, provided for in this section, does not apply to income earned after 31 July 2008.
Relevant Date: Finance Act 2019