Former Formula 1 champion loses £1.4m HMRC tax bill appeal
Former Formula 1 world champion Jody Scheckter has been forced to stump up £1.4m in unpaid tax after an appeal against an HMRC ruling on his buffalo farm failed in court.
The 1979 F1 title-winner was forced to close the buffalo farm business in 2024 due to “significant increases in costs, a reduction in milk volumes, and the additional capital investment required for future-proofing”, having purchased the 3,000-acre Laverstoke Park in Overton, Hampshire, after moving to the UK in the 1990s.
The South African has been hit with a backdated tax bill of more than £1.4m after inspectors ruled that Laverstoke Farm Produce LLP incorrectly offset losses against profits from elsewhere within the business, which provided food to the likes of Ocado.
During the period 2008 to 2010 losses could not be offset, according to the judge, and former Ferrari driver Scheckter’s organisation did not turn enough of a profit to avoid falling foul or laws in place relating to the Income Tax (Trading and Other Income) Act 2005.
Formula 1 champ in court loss
Farmers are allowed to offset losses against taxes due in what is known as sideways loss relief, but HMRC described this agreement as terminated in 2019 due to continued losses. Farms that become profitable within five years qualify for the relief but this was not the case for Scheckter and Laverstoke Farm Produce LLP.
First Tier Tribunal Judge Tony Beare expressed “considerable sadness” at the outcome of the appeal, noting that Scheckter “did have an altruistic purpose in carrying on the business in addition to his profit motive”.
“We would be remiss if we did not conclude this decision by acknowledging that and expressing our profound regret for the way that things developed, regret which is compounded by the conclusions which we have felt compelled to reach in the present proceedings,” the judge added.
Clare Scheckter, Jody’s wife, is also listed as a member of Laverstoke Farm Produce LLP on Companies House. Jody remains a member of Laverstoke Park Produce, and a director of both Laverstoke Park Mill LTD and Laverstone Park Farm LTD.