My first professional horse investment came when Natasha Baker CBE, the Paralympic dressage rider, was looking for a new horse for the Tokyo Paralympics. She rang and asked if I could help. I’d known Natasha for years through the Riding for the Disabled Association, and I said yes, for two reasons.
Paralympians find it incredibly hard to secure a top ride without financial backing, and I believe it really matters that if we can, we support Britain’s elite riders.
That was Keystone Dawn Chorus – Lottie. Together they won a gold and two silvers in Tokyo, then a bronze at Paris 2024. Being part of their journey was a joy, not least because we got to know Natasha’s family so well and were able to join in all the fun in Paris. Because Natasha and her trainer Lisa had done a brilliant job on training Lottie to respond to a disabled rider, when Lottie was sold, to young Irish para rider Katie Reilly, we all made some money too.
My youngest daughter recently kept her horse with Will Rawlin, and through her and Will, I learnt how some of his owners had got on buying and selling event horses; that is how I came to own a share in Pedro.
Showjumping and dressage are already mature markets, where people pay significant premiums for ready-made horses. Eventing has lagged behind. With three disciplines, producing a horse is far harder and takes significantly longer, making it a longer-term investment. Historically, evening’s equine stars were often home-bred – think Caroline Harris’s D Day or Sarah Bullimore’s Corouet – horses who went on to achieve more than their breeders ever dared hope.
That is changing. New money, much of it from overseas, has come into the sport, and the world has acknowledged how good Britain is at breeding and producing event horses. Riders come here for horses who are ready to go, and owners chasing Badminton, Burghley and Kentucky will pay more for a better chance of success for their rider and their country. Prices have risen sharply over the last five years; one horse at Badminton was rumoured to have cost £1m. We’d never heard of numbers like that in eventing before.
That creates a real opportunity: buy a youngster with potential from its breeding, have a professional bring it on, and sell it as a two- or three-star horse. A friend of mine recently did exactly this, more than tripling her initial investment even accounting for costs. From purchase to sale: sixteen months.
There is a tax point too. HMRC treats horses as “wasting assets”, because they lose value over time, so any gain when a horse is sold is free of capital gains tax. With everyone wondering what the autumn budget holds, that is not nothing.
Investing in event horses: risks and benefits
Let’s be clear: the risk is considerable. Horses can damage themselves quicker than you can say “Shut that gate!”, and the bills for bed, board and training never stop. Only invest what you are prepared to lose, and treat anything else as a bonus.
Your first motivation has to be helping the rider, and perhaps giving them the means to step up to a better horse that can take them further. For me it is heart more than head, and it is enormous fun. Rain or shine, you follow your horse round the circuit and share every high and low.
You don’t need a big slice, either. Some of Will’s owners have 5% of a horse and turn up every time they compete. The Rawlins make it a brilliant day out – Miranda’s sausage rolls are something to behold – and for people who no longer ride, it is a wonderful way to do it vicariously.
We are also backing British business at a time when so much investment capital has left these shores. Event riders scratch a living from their passion. They need our support, and a thriving equestrian industry benefits everyone.
Changes to VAT?
Owning racehorses has shown me how eventing could attract far more investment. Under the VAT scheme for racehorse owners, I can register and reclaim the VAT on my costs, from training fees to related equipment. The quid pro quo is that I account for VAT on any prize money. With racing prize money that can cover a month or more of costs; it is a good deal.
Eventing owners get neither half of that bargain. Will’s yard charges VAT on Pedro’s costs, and if Pedro were a racehorse I could claim all of it back. Meanwhile eventing prize money is derisory, which is exactly why riders have always relied on producing and selling young horses to make a living. Precisely because the prize money is so small, accounting for VAT on it would cost owners very little, while reclaiming VAT on costs would make a real difference. And HMRC would be supporting these rural businesses by making them more investable.
As a professional investor, I back around 12 businesses on the assumption that only two or three will really succeed. Horse owners should be able to spread their risk in the same way. If they could reclaim VAT, many would take a share in more than one horse, and that means more horses for more riders.
Levelling the playing field
We breed fabulous horses in the UK and we are a phenomenal country for producing event riders, as well as the trainers that help them to excel. We should be the place the world comes to for purchasing event horses too, and a sport where riders earn a proper living rather than living hand to mouth or succeeding only if they have private money behind them.
Eventing has always been the ultimate test of equestrian skill, yet it has become the poor relation. Let’s raise the prize money significantly, let owners reclaim their VAT and back our fantastic talent.
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