UK-based Formula One teams have received £112.2m ($145m) in subsidies from the UK government since 2012 according to a report in The Daily Telegraph.

The newspaper reveals that six UK-based F1 teams received tax breaks and payments from HM Revenue & Customs (HMRC) courtesy of the Research and Development Expenditure Credit (RDEC).

The RDEC means HMRC refunds 12 per cent of a company’s spending on research and development, either in terms of reducing its tax bill, in the event it makes a profit, or cash payments if there is no tax to be paid.

The Telegraph reports that Force India was the largest beneficiary, receiving cash payments of £51.6m, ahead of McLaren (£28.3), Mercedes (£12.2m), Manor (£11.9m), Renault (£4.5m) and Williams (£3.7m).

Labour MP, Margaret Hodge, who heads a cross-party group focusing on responsible taxation said: “It is outrageous that these teams and this industry, owned by billionaires and multinational companies, are receiving these generous handouts from the public purse.”

There is no suggestion of impropriety on the part of the teams who are merely taking advantage of the UK tax system.

“Year on year Force India has spent a greater proportion of its entire budget on R&D, which was illustrated by its on track performance,” said a spokesman for Force India. “This explains the fact that the team received the largest R&D tax credit.”