‘Punk beer’ brewery Brewdog founder James Watt had said he and other entrepreneurs would leave Britain if the government ups capital gains tax in the Budget.
In an open letter to the Chancellor and PM on Linkedin, Watt said that raising the rate “would destroy entrepreneurial spirit in the UK and in turn severely damage the economy".
“Most of the brilliant business minds that I know, the people who drive our growth and create our jobs, would simply leave the UK and create jobs elsewhere,” he added.
“Increasing capital gains tax will do far more damage to our economy than any gains we may experience from increasing this tax.”
Currently, the tax sits at 24% on gains from residential property, 18% to 28% for interest on investments and 20% for other assets.
A hike in CGT to between 33-39% was a story doing the rounds last week and when asked yesterday was not denied by PM Starmer, though he said talk about the top-end rate was “wide of the mark”.
Watt stepped down as chief executive of Brewdog in May after a controversial seventeen years at the helm that included in 2021 a letter from 100 employees saying there was a culture of fear at the brewer.
Brewdog has been hinting at an initial public offering for some time but in May said there were no concrete plans in place.
At the time, the brewer said it was valued at £1.8 billion based on its most recent funding round.