The founder of BrewDog has claimed that entrepreneurs will abandon Britain if capital gains tax is increased.
James Watt, founder of the brewery and pub chain, told Sky News that a significant increase in the tax would “do much more damage to our economy” and deal a devastating blow to every household’s prosperity.
Mr. Watt, who He stepped down as CEO From BrewDog In May amid controversy over employee wages, it also claimed that any tax increase would result in lower tax revenues.
Peak: PA
“People who start businesses – they also pay National Insurance, they pay their team, corporation tax,” he said.
“We really need to create jobs. We need to invest in our economy. We need economic growth. So it would be anti-business for that to be discouraged.”
While the businessman said he would not leave his native Scotland if the tax was increased, he warned that other businessmen, especially those working in the technology sector, would leave Britain for places like Dubai.
Capital gains tax on the sale of shares and other assets is currently set at up to 20%. It is expected to rise by several percentage points in the October 30 budget.
Only about 350,000 people pay tax annually, but they contribute £15 billion in tax revenue, according to the Institute for Fiscal Studies.
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James Watt. Pic: PA
But not everyone agrees with Watt’s analysis of the outcome of a potential tax rate increase.
The Institute for Public Policy Research argued this week that increasing the capital gains tax would not reduce investment or affect entrepreneurship.
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She noted that this measure could raise £14 billion and actually encourage economic growth.
This public battle is one of many being fought in the run-up to what is being described as the most consequential budget in decades, with a chorus of voices trying to influence the government’s tax policy.