James Machell was born at Etton Rectory near Beverley on 5 December 1837, the youngest child of the Reverend Robert and Eliza Machell. He attended Rossall School near Fleetwood Lancashire from 1846 to 1854. In 1857 he joined the army and was posted to India, becoming involved with the suppression of the Indian mutiny. His regiment returned home to be quartered on The Curragh in Ireland where Machell spent the next seven years. During this period he participated in horse racing and in 1862 became the leading owner in Ireland. The same year he was promoted from Lieutenant to Captain by purchase on 29 July.