Former Ferrari Formula 1 driver and 1979 world champion Jody Scheckter has lost an appeal against HM Revenue and Customs involving a tax assessment of £1,457,634 linked to losses generated by his farming business. The case centred on tax relief claimed in connection with Laverstoke Farm Produce LLP, the agricultural venture developed by Jody Scheckter after his motor racing career.
The 76-year-old South African received a substantial £1.4 million tax bill relating to his organic buffalo farming business, which ultimately failed. The dispute concerned losses generated by the operation and whether Jody Scheckter was entitled to offset them against tax due on other income.
Jody Scheckter loses £1.4m HMRC tax appeal
Jody Scheckter purchased Laverstoke Park in Overton after moving to the United Kingdom in 1996 and subsequently established Laverstoke Farm Produce LLP. The former Ferrari driver initially invested £55 million in the project, but what was intended to become a major business venture for the South African former racing driver eventually developed into a loss-making operation.
The company ultimately stopped its dairy cattle and buffalo farming activities in 2024. For Jody Scheckter, it marked the end of a substantial post-Formula 1 investment that had failed to deliver the profitability originally envisaged.
Jody Scheckter remains one of the most important figures in Ferrari’s Formula 1 history. The South African won the 1979 Drivers’ Championship for Ferrari, securing the title ahead of teammate Gilles Villeneuve.
Why HMRC challenged Jody Scheckter’s tax relief
Under UK tax rules, losses incurred by a business can, under certain circumstances, effectively be offset against tax owed to HMRC on other income. Jody Scheckter attempted to make use of this provision, but in 2019 HMRC determined that the former Formula 1 driver was not eligible for the relief for the period between 2008 and 2010.
Because the business had continued to record losses since its establishment, the former Ferrari driver was not permitted to offset the accumulated losses. That possibility was reserved for businesses that became profitable within five years of being established.
Jody Scheckter subsequently appealed the decision, seeking to overturn HMRC’s position and retain the tax relief connected to the losses generated by his farming operation.
Judge Tony Beare dismisses Jody Scheckter’s appeal
Jody Scheckter’s appeal was ultimately rejected by Judge Tony Beare. Although the judge said he was “sorry” about the outcome, he could not grant the former Formula 1 driver a benefit to which he was not entitled under the law.
As a result, the original tax assessment issued against Jody Scheckter, amounting to £1,457,634, has been upheld and is now enforceable against the former Ferrari driver.
From Ferrari world champion to major farming investment
The ruling comes decades after Jody Scheckter reached the pinnacle of Formula 1 with Ferrari. His 1979 world championship remains an important chapter in the team’s history, with the South African becoming Ferrari’s final Drivers’ Champion before Michael Schumacher ended the Scuderia’s long wait for another title in 2000.
After moving to the United Kingdom in 1996, Jody Scheckter invested heavily in Laverstoke Park and the farming operation connected to it. However, despite the initial £55 million investment, the business continued to generate losses and eventually ceased its dairy cattle and buffalo farming activities in 2024.
The unsuccessful appeal means the financial consequences of that venture continue for the former Ferrari world champion, with the original £1,457,634 HMRC tax assessment now confirmed.
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