Indian-origin billionaire Lakshmi Mittal, long based in the United Kingdom, is reportedly leaving the country as the Labour government plans major tax reforms targeting high-net-worth individuals. Mittal, currently a tax resident in Switzerland, will now spend most of his time in Dubai, according to The Times.
Why Is Lakshmi Mittal Leaving The UK?
The decision appears linked to the UK's abolition of the long-standing “non-domiciled” (non-dom) tax status. There have been no official statements yet. Previously, this status allowed wealthy residents to pay taxes only on income earned in the UK, protecting global assets from inheritance tax.
With the so-called “super-rich tax” expected to be passed in the next budget on November 26, UK elites will face higher taxes on total wealth and income, including assets held abroad. They could also have faced up to 20 per cent tax when leaving the country to avoid payments, though this “exit tax” was later dropped.
For the steel tycoon, inheritance tax rather than income or capital gains tax was reportedly the primary concern, according to reports.
Who Is Lakshmi Mittal?
Born in Rajasthan, Lakshmi Mittal joined his family's steel business after earning a commerce degree from the University of Calcutta. He established his first steel plant in Indonesia in 1976, which later evolved into the global steel giant ArcelorMittal following the 2006 merger with Europe's Arcelor.
ArcelorMittal now generates over $60 billion in revenue annually and employs more than 1.25 lakh people worldwide. Mittal's net worth is estimated at $21.4 billion, ranking him as the 12th-richest Indian and 104th-richest person globally. The family controls close to 40 per cent of the company.
Mittal moved to London in 1995. He acquired some of the country's most expensive homes, including his 55,000 sq ft Kensington Palace Gardens mansion, “Taj Mittal,” bought for £57 million (approx Rs 593 crore) in 2004.
The property includes Turkish baths, a jewel-encrusted swimming pool, a ballroom, and parking for 20 cars. He has donated millions to the Labour Party and supported philanthropic causes including Great Ormond Street Hospital, UNICEF, and Oxford University.
Understanding Inheritance Tax
Inheritance Tax (IHT) is levied when an estate exceeds 325,000 Pounds (around Rs 3.8 crore or higher with home allowances). The tax rate on the value above the threshold is 40 per cent. Advisers told Business Today that “people in this situation feel they have little choice but to leave and are either sad or angry to be doing so.”
Dubai and Switzerland, unlike the UK, impose no inheritance tax. Mittal already owns a mansion in Dubai's Emirates Hills and has invested in other property developments in the emirate.
Other high-profile departures include tech founders Herman Narula and Nik Storonsky, former footballer Rio Ferdinand, and Egyptian tycoon Nassef Sawiris. Many cite the UK's changing tax regime as undermining its appeal for global wealth and business.
