James Watt, the multimillionaire co-founder of “punk” brewer BrewDog, has said he is considering delaying his marriage to reality TV star girlfriend Georgia Toffolo for three years, to avoid missing out on tax relief for investing in her raw dog food business.
The controversial entrepreneur – who built his brewing empire on a reputation for challenging the ethics of big business – has delivered his second anti-tax message in two months.
In a post on the professional social networking site LinkedIn, he told followers that his tax adviser had “dropped a bombshell” on him that threatens to cast a pall over the pair’s engagement, which Toffolo announced on Instagram earlier this year.
He said the tax advice on a planned investment into Toffolo’s raw dog food business had plunged him into a quandary over which should take priority, a commitment to love each other in sickness and in health, for richer, for poorer – or tax relief.
“If I marry Georgia within three years of investing, I become a ‘connected person’ under HMRC rules, and I lose the [Enterprise Investment Scheme] tax relief,” he said.
He asked followers to vote on two options, either: “Love always wins – take the tax relief hit” or “true love can wait for 3 years – secure the relief”.
Watt said he was making an investment in Wild Pack, a dog food business started by Toffolo, who made her name on the reality TV show Made in Chelsea, before winning I’m a Celebrity.
It is unclear how serious Watt, known for publicity stunts such as throwing taxidermy cats out of a helicopter above the City of London, was about his romantic dilemma.
Watt’s squeamish approach to tax comes two months after he lashed out at Labour over reports that the chancellor, Rachel Reeves, intended to raise capital gains tax (CGT) and reclassify debt to allow more spending on public services.
Reeves went ahead with both measures, despite a warning from Watt that entrepreneurs would flee the country.
The Scottish brewing tycoon appears to have remained in the UK despite the measures, although a photograph accompanying his LinkedIn post appeared to show the couple on a sun-kissed beach.
Watt, who could make a significant taxable profit if BrewDog goes ahead with plans to float on the stock market, said at the time that increasing CGT would “destroy entrepreneurial spirit in the UK”.
“Most of the brilliant business minds that I know […] will simply leave the UK to build businesses and create jobs elsewhere,” he said. “Increasing capital gains tax will do far more damage to our economy than any gains we may experience from increasing this tax.”
Watt’s latest gripe about tax relates to the Enterprise Investment Scheme, which supports startup companies by offering tax relief to investors who buy shares in them. Investors can get 30% income tax relief on their investment, up to a maximum of £2m.
In May, Watt said he was stepping down after 17 years at the helm of the Scottish brewer and bar chain. He retains a 21% stake and the title of “captain and co-founder”.
Watt and Toffolo were spotted at Nigel Farage’s 60th birthday celebrations earlier this year, prompting a backlash from some of BrewDog’s army of “equity punks”, who crowdfunded the company to its early success.
