Patriotic Millionaires’ Latest Hypocrisy mdi-fullscreen

Hippie farmer Guy Singh-Watson spends his time calling for higher taxes with the sanctimonious pressure group Patriotic Millionaires UK. Meanwhile, Singh-Watson has been selling off his company, Riverford Organics, to an employee-ownership trust (EOT) since 2018, for which he received no small amount of fawning admirationCompanies House records revealed that the EOT was controlled by… Singh-Watson himself, until June this year.

He said: “After much consideration and despite the example set by many politicians … I decided to make no attempts to avoid tax liability on the sale of the shares… I will pay my tax as others who can’t afford creative accountants do”. Noble…

The only problem with Singh-Watson’s posturing is that if you sell a company to an EOT – as opposed to any other type of employee group – then usually no capital gains tax is paid on the sale.

In 2020 Riverford’s finance director bragged about the strategy

Aside from the ethical benefits, there are tax advantages for the seller and the employees. No capital gains, income or inheritance tax liabilities should arise on the disposal of a controlling interest in a company to an employee ownership trust. Employees, in turn, receive a tax-free bonus at the end of each year.”

Very patriotic indeed…

mdi-timer September 15 2023 @ 14:30 mdi-share-variant mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-printer
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