Becoming an owner:
Company
For companies (this includes studs) who plan to own horses under the name of a company or business. For the company to be a member of a partnership or to be a syndicator, the company will first need to register in its own right via the BHA website.
SOLE OWNER
For individuals who plan to own/lease horses in their own name. Sole owners can own/lease horses outright, be a member within a partnership or form part of a syndicate/racing club. For a sole owner to be a member of a partnership or to be a syndicator, the sole owner will first need to register in their own right via the BHA website. Please note in the UK the ownership registered with the BHA must reflect the ownership of the horse. You therefore can not run under a racing/stable name if you register as a sole owner.
PARTNERSHIP
Partnerships are for two or more people/entities who want to share ownership (or lease) one or more horses. Partnerships can be comprised of sole owners, companies, syndicates and/or racing club, but all must have been registered in their own right first. Partnerships allow owners to define the percentage of each horse they own and split costs and winnings accordingly.
What ownership type is right for me?
Will the horse(s) be owned by a Company?
Am I to be the only person involved in this ownership?
Will all the people involved be registered owners in their own right?
SYNDICATE
Syndicates are for people who want to share ownership (or lease) one or more horses. Syndicates tend to be larger than partnerships and are managed/administered by the syndicators. Syndicates can be run both commercially (where a management fee is charged or participation is publicly advertised) or comprise just a large group of family/friends. Syndicates are different to partnerships as only the syndicator(s) must register as a sole/company owner. It isn’t necessary for members of the syndicate to register as owners, but they must all be listed on the registration form.
The application form to apply to become an owner can easily be found on the BHA website by scanning the QR code below, or GBRI can send on to you.
- All information about what is needed to apply can be found on the same page.
- The application will be sent to Weatherby’s who will obtain clearance from the relevant racing authority. They will likely also require ID from you such as a passport.
- You can register an ‘authority to act’ at the application stage (or afterwards) and this will enable your bloodstock agent or your trainer to make entries/declarations etc on your behalf.
Training agreement:
To ensure that everyone understands the terms of the training arrangement, it is important to have a written agreement in place between you and your trainer.
The terms which should be outlined in the agreement include:
- The basic training fee
- Other regular expenses (such as gallop fees, shoeing costs etc)
- Any additional charges or expenses (such as veterinary fees)
- The time and method of payment by the owner
A template agreement that has been produced by the ROA and NTF can be found on the BHA website or sent on to you by GBRI.
Registering colours:
- Colours can be registered at the application stage or after approval.
- There are 18 standard shades and 25 standard patterns that can be used and registered for free.
- Anything outside of the 18 standard shades/25 standard patterns are classed as bespoke colours.
- If you have bespoke colours that have been owned for five years or more in another country they can be registered for free, otherwise there is a fee of £5,000 (+VAT).
Banking:
All registered owners must open a racing bank account to allow the BHA to pay you prize money in an efficient, secure and timely manner.
Weatherbys Banking:
- You will have the option to set up a Weatherbys bank account in the BHA application form, or it can be done at a later stage via the Weatherbys Banking website.
- Owners can use a Weatherbys account to facilitate any racing transactions, most commonly paying entry fees and training bills, and receiving any prize money earned.
- The account can also be used to buy and sell bloodstock.
- Weatherbys also offer a secure foreign exchange service that might be useful when settling payments from overseas.
- If you reside outside of the UK you will need to open a Racing Gold account with Weatherbys.
To open a Racing Gold account, Weatherby’s will require:
- Weatherbys will need certified ID (passport), address (ie utility bill etc) and three months of bank statements (these are an FCA obligation).
- Your ID will need to be certified; witnessed and approved by a lawyer or attorney.
- Weatherbys require documents detailing source of funds; if funding the account through a personal bank account then the three months provided bank statements will suffice otherwise a short description of where funds will originate from ie. a company or elsewhere etc.
Weatherbys VAT Return Service:
- Weatherbys Racing Bank also has a VAT Return Service and you will receive 20% off with a Racing Gold account. The VAT Return Service will ensure you can maximise on the government-backed scheme which operates in the UK.
- By signing up to the Racehorse Owners VAT Scheme you can reclaim VAT on many costs – including the purchase price of a horse, training fees, vet’s fees and blacksmith fees. You can also reclaim VAT on certain out-of-pocket expenses such as hotel bills spent while you are watching your horse race or train.
- VAT is however due to HMRC on income such as sponsorship, prize money and the sale of any horses.
Racing Payment Service (RPS):
- Unlimited access to our payments team for telephone banking
- Operate a trainer payment mandate
- Optional paper statements
- Optional currency accounts
- Optional agent(s) on your account
- All horses must be covered by a sponsorship agreement for you to be able to apply. Most yards in the UK have sponsorship deals in place, but Weatherbys does also offer sponsorship.
- The Weatherbys VAT Services team can take care of everything for you, from the online application, dealing with HMRC and the collation and submission of quarterly VAT returns.
For further information, please contact Andrew Tinkler on +44(0)7467 813892 or atinkler@weatherbys.bank.
Should you not wish to open a bank account in the UK, an alternative option is to open a BHA Direct Debit arrangement. This is a simple monthly invoice account which is settled by Direct Debit on, or around, the 15th of each month.
It is restricted solely to your racing transactions (entry fees, jockey fees, prize money, gallop fees and ROA Membership) and does not extend to your payment of training fees.
The BHA arrangement does not allow requested withdrawal of funds nor the retention of credit funds. Instead, if you are in credit at the end of the month, the full credit balance will be sent to your nominated account by Direct Credit at the beginning of the following month.
So far in 2024, 41 trainers based in Britain have won 150 Group/Graded flat races across 11 nations for owners from 15 countries.
*correct as of 25th September 2024
If sufficient funds are not available at the time of the monthly Direct Debit an overdue account fee will be charged. If the account is not settled on a subsequent Direct Debit request, further charges will be incurred and all ownership activities related to the account suspended, with the result that any horse you have an interest in will not be allowed to run.
Racehorse Owners Association:
The Racehorse Owners Association exists to promote and protect the interests of racehorse owners, making ownership more enjoyable and rewarding for every owner racing their horse in Britain.
Here are just a handful of the many benefits you receive as an ROA member:
- Members of the ROA are entitled to a 20% discount on most BHA registration fees including registration of ownership, colours and authority to act.
- 20% discount on the ROA VAT Solution. The ROA VAT Solution is driven by a dedicated team with over 20 years experience in The Racehorse Owners VAT scheme. The service is powered through the market-leading XERO accounting software which is fully compliant with HMRC’s Making Tax Digital requirements.
- Owner sponsorship scheme in order to enable you to reclaim VAT.
- Owners are currently vulnerable to claims even when their horse is in somebody else’s possession. ROA membership provides Third Party Liability Insurance.
- Complimentary racecourse entry with the Racecourse Badge Scheme for owners. Over 90% of the fixture list is included, and at some fixtures you can also take a guest.
Single membership £280.
Checklist
Complete the application form
Set up a BHA Direct Debit arrangement or open a Weatherbys bank account
Register your colours
Register an Authority to Act
Ensure there is a written agreement in place between you and your trainer
For further information or guidance on owning in Britain, please do not hesitate to contact the GBRI team who will be delighted to help.