OLS Solicitors Blog

How to Buy a Racehorse: The Legal Aspects

By Lara Davies on April 9, 2024

Embarking on the journey of racehorse ownership can be as thrilling as it is complex, presenting a unique set of legal and financial considerations that potential owners must navigate. As an equine law expert at OLS Solicitors, I’ve guided numerous clients through the intricacies of purchasing a racehorse, ensuring their ventures into the racing world are both legally sound and rewarding. Here, I’ll share essential advice on tackling the legal aspects of racehorse ownership, from syndicate purchases and tax-efficient investments to conducting vital health checks and securing appropriate insurance.

Joining a Syndicate: The Collective Approach

Syndicate ownership offers a more accessible entry point into the racing industry, allowing you to share the costs and joys of racehorse ownership with others. However, it’s imperative to establish a clear syndicate agreement from the outset. This legal document should detail the ownership structure, financial commitments, profit distribution, and exit strategies, ensuring all parties’ rights and responsibilities are transparent. At OLS Solicitors, we specialize in drafting and reviewing these agreements to protect your interests fully.

Maximising Your Investment with EIS

For those considering racehorse ownership as a financial venture, the Enterprise Investment Scheme (EIS) offers attractive tax reliefs, making it a potentially lucrative investment. However, navigating EIS regulations requires expertise to ensure your investment qualifies. Our team at OLS Solicitors can provide the necessary guidance, ensuring your racehorse investment is both compliant and tax-efficient.

The Importance of a Pre-purchase Vet Check

A comprehensive veterinary examination before purchasing a racehorse cannot be overlooked. This step is crucial in uncovering any health issues that could impact the horse’s performance or overall value. Legal disputes can often arise from undisclosed health problems discovered after purchase. At OLS Solicitors, we can help you understand the legal implications of the vet check results, advising on the best course of action should any issues be identified.

Insuring Your Racehorse

Insurance is a critical component of protecting your investment in a racehorse. From covering veterinary bills to insuring against loss of value or mortality, the right policy can safeguard you against unforeseen financial losses. Our team can assist in reviewing insurance policies, ensuring you have comprehensive coverage that meets your specific needs.

Navigating Caveat Emptor

The principle of caveat emptor, or “let the buyer beware,” plays a significant role in the purchase of a racehorse. It’s incumbent upon you, the buyer, to conduct thorough due diligence before finalising your purchase. This includes a detailed vet check, an examination of the horse’s racing history, and an understanding of its training background. Should issues arise post-purchase, having meticulously documented the buying process and any representations made by the seller can prove invaluable. At OLS Solicitors, we’re here to guide you through this process, ensuring you’re fully informed and protected every step of the way.

Your Next Step to Racehorse Ownership

Navigating the complexities of racehorse ownership requires careful planning, detailed due diligence, and expert legal advice. As an equine law expert at OLS Solicitors, I am here to provide you with the guidance and support needed to make your venture into racehorse ownership a success. Whether you’re considering a syndicate purchase, looking into tax-efficient investment schemes, or seeking to ensure your prospective horse is a sound investment, our team has the expertise to assist you.

Don’t embark on this exciting journey alone. Contact us at OLS Solicitors today, and let us help you navigate the legal landscape of racehorse ownership, ensuring your venture is as thrilling as it is rewarding.

For professional advice on buying a racehorse and navigating its legal aspects, reach out to Lara Davies and the team at OLS Solicitors. We’re here to ensure your racehorse ownership journey is a success from the start.

Request A Free Callback

Author

Lara Davies

Lara is our Head of Legal Practice and a director. She advises on complex financial remedy proceedings, private child disputes, and Inheritance Act cases. She also has a keen interest in protecting vulnerable clients, particularly those who have experienced forms of domestic violence in their relationships. Lara has often represented fathers in private child proceedings and has a unique understanding of the challenges faced by them. Lara is keen horsewoman, and has spent her life competing in national and regional level dressage competitions with success. She is also a keen runner, and has completed Marathons, Half-Marathons and mountain races – she is now building up to her first ultra-marathon. Lara loves being outside in the mountains; her favourite place is the Scottish Highlands where she can be found a few times a year with her other half and their Pug in their campervan. She is slowly making her way through climbing each of the Scottish Munros and high peaks of England and Wales. Lara is a Welsh speaker.