Full Breakdown
Lakshmi Mittal Exits the UK Amid Tax Reforms
11/24/2025, 12:44:48 AM
Departure of a Billionaire
Lakshmi Mittal, the Indian-born steel magnate and founder of ArcelorMittal, has decided to leave the United Kingdom, becoming the latest billionaire to exit in response to significant tax reforms proposed by the Labour Party government. As of now, Mittal is registered as a resident in Switzerland for tax purposes and plans to spend much of his future in Dubai. His departure follows a series of tax increases aimed at the wealthy, including changes to capital gains tax and inheritance tax, which have drawn criticism from many affluent individuals.
Tax Reforms and Their Impact
The anticipated changes to the tax regime, particularly the abolition of the non-domiciled status, have been pivotal in Mittal's decision to relocate. This status allowed wealthy individuals to pay UK tax only on income generated within the country. The new rules mean that all assets, regardless of their location, are subject to UK inheritance tax, which can reach up to 40%. In contrast, both Dubai and Switzerland do not impose such taxes, making them attractive alternatives for high-net-worth individuals.
Advisers close to Mittal have indicated that the primary concern was not the income or capital gains tax but rather the implications of inheritance tax. Many wealthy expatriates feel compelled to leave the UK due to these changes, expressing feelings of sadness or anger about their departure.
Mittal's Wealth and Investments
As of the 2025 Sunday Times Rich List, Mittal's fortune is estimated at £15.4 billion, ranking him as the eighth richest person in the UK. His extensive property portfolio in London, valued at over £300 million, includes multiple homes on Kensington Palace Gardens, known as "Billionaires' Row." Despite his exit, Mittal has continued to invest heavily in Dubai, purchasing a baroque mansion for approximately £152.7 million and acquiring several prime plots in a luxury development on Naïa Island.
Broader Context of Wealthy Exits
Mittal's departure is part of a broader trend among the super-rich leaving the UK. Other notable figures, such as Nikolay Storonsky, co-founder of Revolut, and John Fredriksen, a Norwegian shipping magnate, have also relocated to Dubai, citing the UK's deteriorating business environment and tax policies. The exodus reflects growing discontent among wealthy individuals regarding the UK's fiscal landscape, particularly under Chancellor Rachel Reeves, who is expected to announce further tax increases in her upcoming budget.
Criticism of the Tax Policies
Critics of the Labour government's tax reforms argue that these measures represent a significant deterrent to wealth creation in the UK. The proposed exit tax, which would impose a 20% levy on those leaving the country, has particularly alarmed affluent individuals. The uncertainty surrounding the government's tax policies has led many to question the stability and predictability of the UK as a favorable environment for business investment.
Verbatim Quotes
- “The issue was inheritance tax. Many wealthy people from overseas cannot understand why all of their assets, wherever they are in the world, should be subject to inheritance tax imposed by the UK Treasury.” — Adviser familiar with Mittal’s move
- “It’s sad, really,” — Friend of the Mittals
- “Many British people have benefited from having this family here. Not any more.” — Friend of the Mittals
Mittal's exit underscores a significant shift in the landscape for high-net-worth individuals in the UK, raising questions about the future of wealth and investment in the country.
