IRISH trainers are set to be stung in the pocket with huge tax bills for running horses in the UK with Cheltenham Festival just around the corner.
Willie Mullins is the first handler to run an Irish horse in England since Brexit as Grangee competes at Market Rasen on Saturday.
His filly is the guinea-pig for what’s to come with the likes of Mullins, Gordon Elliott and Henry De Bromhead hopeful of running their usual battalions at the Cheltenham Festival.
Elliott and Mullins usually have over 50 runners at the Festival, with Gold Cup hero Al Boum Photo and Elliott’s Envoi Allen likely to be two stars of the show once more this March.
But with travel restrictions for staff and new VAT bills since Britain officially left the EU, the usual smooth process has become a nightmare.
Trainers are set to be hit hard by a 20% tax bill on EVERY horse they send across.
HMRC are yet to clarify how the 20% is worked out and with racehorses far from having a set value, how would this be applied?
With just two months until the Festival gets underway, Irish and even French trainers are hoping to have this clarified as soon as possible.
The bills are likely to be refunded down the road, but it could leave the Irish big guns millions out of pocket come March time.
And with prize money levels at a new low, it’s not a bill many can afford.
Cheltenham are aware of the issues – and as well as battling a first behind closed doors Festival – are attempting to ensure the Irish make the trip.
A Jockey Club spokesperson said: “We are well aware of the current issues of bringing horses into the country from Ireland and are exploring ways to help to minimise the difficulties encountered by Irish owners and trainers.
“This includes working with the various authorities, including HRI, to seek to resolve financial burdens, including VAT costs.”
The issue is yet to rear its head with British trainers as they remain barred from having runners in Ireland due to COVID-induced travel restrictions.
But with the Punchestown Festival and other big Irish races to come in the spring it could yet bite this side of the Irish sea.
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