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Sarah Ann remarried, so probably Horatio died 1871-81, or maybe they divorced.

Marriages Mar 1881 (>99%)
REID William Manchester 8d 278
SMITH Sarah Ann Manchester 8d 278



1881 England Census about John Smith
Name: John Smith
Age: 13
Estimated Birth Year: abt 1868
Relationship to Head: Step Son
Mother: Sarah Ann Reith (Reid on image)
Gender: Male
Where born: West Bromwich
Civil Parish: Manchester
County/Island: Lancashire
Country: England
Street address: 11 Back Lime Street
Education:

Employment status:

View image
Occupation: Scholar
Registration district: Manchester
Sub-registration district: Ancoats
ED, institution, or vessel: 26
Neighbors: View others on page
Piece: 3982
Folio: 27
Page Number: 47
Household Members:
Name Age
William Reith 27
Sarah Ann Reith 26 (actually 36 on image), Lingerwick, (Tingewick) Bucks.
John Smith 13
Emily Bradbury 18

William Reid, "England, Lancashire, Cheshire, Yorkshire, Parish Registers, 1603-1910"
Name: William Reid
Event Type: Marriage
Event Date: 02 Mar 1881
Event Place: St Philip, Manchester, Lancashire, England
Gender: Male
Age:
Marital Status: Single
Birth Year (Estimated):
Father's Name: James Reid
Mother's Name:
Spouse's Name: Sarah Ann Smith
Spouse's Age:
Spouse's Marital Status: Widowed
Spouse's Birth Year (Estimated):
Spouse's Father's Name: William Holton
Spouse's Mother's Name:
GS Film number: 2357537
Digital Folder Number: 004497844
Image Number: 00539


marriage cert

https://familysearch.org/pal:/MM9.3.1/TH-1-159376-860777-67?cc=1788853&wc=M6FD-ZWP:143838901,158004801,158058501

The only faint possibility I can see for Horatio's death would be if the registrar (or informant) got his name badly wrong:

????
Deaths Mar 1876 (>99%)
Smith Hezekiah 41 Manchester 8d 151