Man who invented the Blackberry and is still worth £460m loses £1.2m stamp duty battle with HMRC
The inventor of the once much-desired Blackberry mobile device has lost a hefty £1.
The inventor of the once much-desired Blackberry mobile device has lost a hefty £1.2million tax battle over unpaid stamp duty.
Mike Lazardis, 63, was hailed as a cutting edge tech whizz when his must-have smartphone was launched in the early Noughties.
But the gadget faded into obscurity against the arrival of Apples iPhone.
Once worth about £3billion, the Greek-Canadian electrical engineer now invests in quantum computing technology and lives on a more modest £460m fortune in Hertfordshire with his wife Ophelia.
His luxurious country estate, located near the upmarket village of Cuffley and for which he paid £10.75m in February 2022, has become the subject of a tax wrangle in recent months.
Mike Lazardis, 63, inventor of the once much-desired Blackberry mobile device and pictured with his wife Ophelia, has lost a hefty £1.2million tax battle over unpaid stamp duty
Lazardis luxurious country estate, located near the upmarket village of Cuffley and for which he paid £10.75m in February 2022, has become the subject of a tax wrangle in recent months
The opulent five-bedroom detached property, called Woodlands, features landscaped gardens, a heated outdoor pool and a tennis court, alongside a lake, a coach house and three self-contained cottages.
An estate agents brochure of the 45-year-old property describes it as an exceptional Nash style villa with three cottages set in a mature parkland estate of 106 acres.
Lazardis argued that as 40 acres of his estate was used to make hay by an external company, which had paid the previous owner £1,400 a year for the privilege of cutting the grass, his estate had a mixed commercial and residential use.
As such, Woodlands was eligible for a stamp duty discount and Lazardis need only pay a mixed-use rate capped at 5 per cent, compared to up to 12 per cent.
But officials at His Majestys Revenue and Customs (HMRC) did not see it that way and said the property was entirely residential.
A year after buying Woodlands, Lazardis was landed with a £1.2million bill.
Despite raising an appeal, a tax tribunal has now ruled he is eligible for the full amount because the fields were not actively and substantively exploited on a regular basis to make it a commercial operation.
Joseph Adunse, a tax partner at accountancy firm Moore Kingston Smith told The Times that HMRC had previously challenged property owners who were trying their luck.
But in this case there was a serious amount of land, part of which was indisputably farmed, and on the face of it the tribunal decision does seem unfair.
A government spokesman said: We welcome this decision, which confirms our position that the land purchased forms part of the garden and grounds of the property and is in line with HMRC guidance on the subject.
Mike Lazardis, 63, was hailed as a cutting edge tech whizz when his must-have Blackberry smartphone was launched in the early Noughties
HMRC has previously landed heavy stamp duty demands on owners after they purchased properties.
In 2021, billionaire developers Christian and Nick Candy were taxed almost £4million for a single purchase after falling through a legal loophole.
Nick called the HMRC decision patently unfair after the brothers were taxed twice for the purchase of a Georgian mansion in London.
Christian, 46, and Nick, 48, were both ordered to pay a stamp duty land tax (SDLT) levy of £1.92million on the west London property.
They fell victim to a law meant to prevent buyers avoiding tax by transferring ownership during the middle of a sale.
A tribunal backed the Government decision after Christian started building work on Gordon House despite not finalising the purchase - which triggered a rule that the purchase was substantially performed.
This meant when he decided not to move in and instead gave it to his brother - who completed on the purchase - he still had to pay stamp duty.
His brother, as the one to have completed the sale, then also had to pay.
When Christian tried to claim a refund because he never personally completed on the property, he was told he transferred ownership six months too late.
A judgment at the upper tax tribunal found under HMRC rules he had only 12 months to transfer ownership without being liable for stamp duty.
Christian had taken 18 months to transfer ownership - during which time he began elaborate building works, including a 60ft swimming pool and a cinema, and paid £27.4million.
