The non-professional active owner falls between the non-active owner and the professional owner.
In practice
- You entrust your horse to a trainer.
- However, you carry out certain actions (career monitoring, regular communication, occasional decisions) without the activity being conducted on a regular, constant basis or for profit.
- This activity is considered non-professional by the tax authorities.
Tax regime
- Race winnings and owner’s bonuses are taxable under the Non-Commercial Profits category (non-professional BNC).
- Any potential losses cannot be offset against global income.
- They can only be offset against income of the same type for a maximum period of six years.
Capital gains on horse sales
- Capital gains fall under the professional capital gains regime (short- or long-term depending on the holding period).
- Horses can be depreciated, generally over a period of 3 years.
VAT
- In principle, the non-professional active owner is not subject to VAT.
Need help?
The distinction between a non-professional active owner and a professional owner depends on factual criteria.
We recommend consulting a tax advisor and remain available for any general questions.
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