Foal Purchases and Pinhooking
Lillingston Bloodstock have launched and managed many successful UK based SEIS Companies for the purposes of trading in bloodstock where profitable opportunities are identified.
The type of opportunities envisaged include traditional pin hooking, where foals are purchased and re-presented for sale as yearlings, buying fillies out of training and selling the following year once in foal and other similar short-term bloodstock trades.
Andrew Lillingston, brother of Luke, is a qualified Chartered Accountant and Chartered Tax Surveyor, running his own accountancy and tax advisory business in South West London. Andrew is experienced at obtaining SEIS approval from HM Revenue & Customs for similar types of companies.
Investment in bloodstock is very high risk, but for qualifying UK taxpaying investors, the risk can be considerably reduced through the significant tax advantages of SEIS companies.
- Income tax liability will be reduced by 50% of the value of the amount invested providing the shares are held for at least three years.
- Where investors have realised taxable capital gains in excess of their annual CGT exemption in 2017/18 then 50% of the amount of those gains which are reinvested in 2017/18 into qualifying SEIS companies become exempt from capital gains tax.
- Any gains realised on the disposal of the company shares after three years will be Capital Gains Tax-free.
- Losses arising on the sale of the company’s shares or on the winding up of the company may in certain circumstances be set off against an individual’s income, thereby reducing their income tax liability in the year of loss.
- The shares will qualify for Business Property Relief for Inheritance tax purposes.
Lillingston Bloodstock strongly recommends that each investor consults their own tax adviser to consider the tax implications of this investment for them individually.
Lillingston Bloodstock foal purchase for 95,000gns, re-sold by Grove Stud at the Craven 2yo Breeze-Up Sale for 575,000gns.