The former BHS owner Dominic Chappell has appeared in court to face charges of a £500,000 tax fraud and that he allegedly bought two yachts to launder money.

Chappell, 52, of Dorset, who was wearing a slate grey suit and open-necked blue shirt, spoke only to confirm his personal details as he appeared at the City of London magistrates court.

He faces three charges of cheating the public revenue and two counts of money laundering in concealing, disguising, converting, transferring or removing criminal property relating to his bankrupt finance company Swiss Rock Limited.

The alleged offences took place between January 2014 and September 2016.

Chappell was thrown into the spotlight in 2015 by his £1 purchase of BHS from the retail tycoon Sir Philip Green, just over a year before it collapsed with the loss of 11,000 jobs.

Prosecutors suggest the fraud totals £500,000, the court heard. The money laundering charges relate to funds from the company allegedly being used to buy two yachts.

According to the charges, the first vessel, Maverick V, was bought for £182,500 in April 2015, just a month after the acquisition of BHS. A further £230,000 was allegedly used to buy a second yacht called Maverick 6VI five months later.

The charges allege Chappell failed to register Swiss Rock for VAT from the correct date, provided false or misleading information to HMRC and failed to correct the taxman’s assessment of how much tax was due. It is also alleged he provided false information to accountants.

Chappell was unconditionally bailed until 16 July.