Former Formula One world champion Jody Scheckter has lost a multimillion-pound tax appeal involving his Hampshire farming business, despite investing almost £55 million of his own money into the venture.
The 1979 Formula One world champion challenged HM Revenue and Customs (HMRC) after it refused to let him offset almost £3.8 million in losses from Laverstoke Park Produce LLP against his other income and capital gains.
However, the First-tier Tribunal dismissed his appeal, ruling that the farming business did not meet the conditions required for the tax relief.
The dispute centres on Laverstoke Park Farm, near Overton, where Scheckter sought to establish a leading organic and biodynamic food business after moving to the UK in 1996.
He established Laverstoke Park Produce LLP in September 2001, retaining a 99 per cent stake in the partnership.
The scale of his commitment was highlighted in the tribunal’s judgment, which revealed that he invested just under £55 million into the business between October 2003 and March 2013.
Tribunal questioned commercial basis of farming operation
The judges accepted that Scheckter genuinely intended to make the business profitable, stating there could be “absolutely no doubt” about his intention to generate a return.
However, they concluded that the farming trade, considered separately from the wider business, had not been conducted on a commercial basis.
A central issue was the use of the Laverstoke Park brand, which belonged to the partnership but was also used by a separate company, Laverstoke Abattoirs Limited, later renamed Laverstoke Park Farms Limited.
The company, of which Scheckter was the sole shareholder and director, used the brand to sell meat and dairy products.
Despite the brand being regarded within the business as its most valuable asset, the tribunal found that the separate company paid nothing to the partnership for its use.
The judgment stated: “An entity which makes its most valuable asset available to another for use without charge is not in our view acting on a commercial basis.”
The judges acknowledged that the farming operation formed part of a much larger business but rejected Scheckter’s argument that it was merely ancillary, or secondary, to the wider operation.
As a result, he could not rely on an exemption from the restrictions governing tax relief on farming losses.
Judges express sadness over decision
Although the tribunal dismissed the appeal, the judges expressed “considerable sadness” at the outcome.
They recognised the substantial financial investment and personal commitment Scheckter had made in pursuit of his ambition to establish a successful organic farming and food business.
The case was heard by Tribunal Judge Tony Beare and Jane Shillaker, with the decision released on September 3.
Laverstoke Park Estate was put up for sale in May 2025 with an asking price of £58 million. The property was still being marketed at that price in September 2025.
The estate, located near Overton in Hampshire, became closely associated with Scheckter’s efforts to develop an organic and biodynamic approach to farming and food production.