Question 5: Some wealthy people buy purebred expensive horses which might cost thousands of dinars a horse, for the purpose of joining horse races and winning prizes. Is Zakaah (obligatory charity) due on these horses? What is their Nisaab (the minimum amount on which Zakaah is due)?
Answer: If the case is as you have mentioned, that they are bought for keeping, not trading in them, there is no Zakaah due on them, as the Prophet (peace be upon him) said: No Zakaah is due on the slave or the horse of a Muslim. (Agreed upon its authenticity by Al-Bukhaaree and Muslim). It was authentically reported that Allaah’s Messenger (peace be upon him) said: A horse may be kept for one of three purposes: for a man it may be a source of reward; for another it may be a means of living; and for a third it may be a burden (a source of committing sins)…. read more here.