As chief technical officer, Gascoyne was a driving force behind the creation of the team in 2009 and had hoped to form a competitive outfit that did justice to the memory of late Lotus founder Colin Chapman.
The team set up a base in Hingham, just 16km from the factory of Lotus Cars. However, there then came a falling out with the sportscar manufacturer, which subsequently entered into a sponsorship agreement with the Renault team.
With the Chapman family backing Lotus Cars in the dispute and a court case failing to provide a clear outcome, Gascoyne and team owner Tony Fernandes ultimately abandoned the Lotus name.
From 2012, the outfit will be run as Team Caterham and will relocate to the former Arrows team base near Silverstone. Renault, meanwhile, will henceforth be called Lotus.
Gascoyne admits that he is bitterly disappointed with the way the situation unfolded but said there was little point dwelling on it.
"I'm big enough, bad enough and been in this game for long enough you just accept that's the way it is," he told the Norwich Advertiser.
"For me as a Norfolk kid, I came back to Norfolk and set up a Formula One team called Lotus - and you don't get an opportunity like that very often, so it's something I will always be very proud of.
"You have to have a deep sense of practicality. You can't get emotional about it. It became a massively hot political thing with the Chapman family, with Group Lotus and (their parent company) Proton, and the individuals taking it over.
"But what we did was done in great faith and with great spirit, and I think everyone involved can be very proud of what they did under the Lotus name."
While off-track matters dominated the headlines this year, on-track the team failed to achieve their pre-season aim of scoring a world championship point.
However, their performance was still significantly better than that of fellow newcomers HRT and Virgin and while admitting he is disappointed with the season, Gascoyne believes the team is heading in the right direction.
"From Singapore onwards we always beat an established team - Williams, (Lotus) Renault, Sauber. We have clearly moved up to those teams and been able to beat them on track," he said.
"I agree it was disappointing we didn't score a point but who's to be more disappointed, us or Williams and Renault? I think the job we did to be where we were was a lot better than the job they did to be where they were.
"But it's not just where you are on the track, it's whether you're on track to build the team up. Are you putting everything in place for next year and the one after? You don't necessarily see that on track while we're doing it, but that has all been going very well.
"It's much more of a level playing field. The job now is to take it on and do what we said we would last year and do it properly - that's the challenge and it is a great challenge.
"But it's not like we're just the same: like Williams and Renault, so try harder. No, we have physical reasons why it will be better that we didn't have before. And we are trying harder too."