Jody Scheckter v The Commissioners for HMRC

Facts

The appellant, Jody Scheckter, a South African business proprietor and former motor racing driver who had realised a substantial gain on the sale of his firearms training simulator company FATS Inc., moved to England in 1996 and acquired Laverstoke Park and 530 surrounding acres. He incorporated Laverstoke Park Produce LLP in 2001, holding a 99% interest, and later Laverstoke Abattoirs Limited (renamed Laverstoke Park Farms Limited), of which he was sole shareholder and director. The LLP leased some 2,700 acres, converted the land to organic production, reared buffalo, cattle, pigs, sheep and poultry, cultivated crops, ran a composting facility, a laboratory, a farm shop and hospitality events, and built a suite of food processing facilities including a multi-species abattoir operated by the company. The appellant contributed just under £55,000,000 of capital, and both entities made losses throughout. He claimed sideways loss relief for his share of the LLP's losses for the tax years ending 5 April 2008, 2009 and 2010. HMRC opened enquiries and, by closure notices issued on 10 January 2019, denied the claims under sections 66(2)(a), 66(2)(b) and 67(2) of the Income Tax Act 2007. Following an unsuccessful review, the appellant notified his appeal to the First-tier Tribunal on 26 July 2019.