1979 Formula 1 World Champion Jody Scheckter has lost a court case against HMRC for a £1.4 million tax demand.
The 76-year-old was subject to a staggering £1.4 million tax bill in relation to his failed organic buffalo farming business.
Scheckter had bought Laverstoke Park in Overton and incorporated Laverstoke Farm Produce LLP after he had relocated to the UK in 1996.
What began as a £55 million investment by the South African former racing driver turned into a loss-making entity.
The firm closed its dairy and buffalo farming operations in 2024.
Under UK tax laws, losses incurred can essentially be set-off against tax owed to HMRC on other income.
Scheckter employed this arrangement but HMRC ruled, in 2019, that he was not eligible under the scheme for the period between 2008 and 2010.
As the firm had consistently suffered losses since its incorporation, it was disqualified from setting off its losses which was only available to businesses that became profitable within five years of incorporation.
Scheckter went on Appeal, but it was dismissed by Judge Tony Beare who while ‘regretful’ could not give a benefit to Scheckter which was not available to him under law.
Therefore, the original £1,457,634 tax bill raised against Scheckter has been upheld and is now enforceable against the former Ferrari driver.
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