Jody Scheckter loses £1.4 million tax dispute against HMRC

Former Formula 1 World Champion Jody Scheckter has lost a legal challenge against HM Revenue and Customs (HMRC) regarding a £1.4 million tax bill. The dispute stems from the failure of his organic buffalo farming business, Laverstoke Farm Produce LLP.

Scheckter, who won the 1979 championship with Ferrari, invested approximately £55 million into the Laverstoke Park estate in Hampshire after moving to the UK in 1996. The venture, which specialized in buffalo mozzarella and supplied organic meat to Ocado, ceased its dairy and buffalo farming operations in 2024 due to rising costs and declining milk volumes.

The tax issue involves ‘sideways loss relief,’ a mechanism allowing businesses to offset losses against other income. HMRC ruled in 2019 that Scheckter was ineligible for this relief between 2008 and 2010 because the farming partnership failed to become profitable within five years of its incorporation.

At the First-tier Tribunal, Judge Tony Beare dismissed the appeal, upholding the original demand of £1,457,634. While expressing “considerable sadness” regarding the failure of the project, the judge noted that the law did not allow for the relief Scheckter sought.