Steel Tycoon Lakshmi Mittal Leaves UK Ahead of Wealth Tax Changes
Indian-origin steel magnate Lakshmi N. Mittal has officially left the United Kingdom, relocating to Dubai as the Labour government prepares significant tax increases targeting the super-rich. The 75-year-old billionaire’s departure comes just days before Chancellor Rachel Reeves’ crucial Autumn Budget announcement.
Key Takeaways
- Lakshmi Mittal, UK’s eighth richest person worth £15.4 billion, has left Britain for Dubai
- Move prompted by feared inheritance tax changes in upcoming Labour Budget
- Mittal follows other wealthy entrepreneurs fleeing UK tax uncertainty
- Government faces £20 billion financial hole driving potential wealth taxes
Tax Exodus Accelerates
According to The Sunday Times report, Mittal has become the latest billionaire to exit the UK ahead of Chancellor Reeves’ November 26 Budget. The Rajasthan-born industrialist, who founded ArcelorMittal, will now split his time between Dubai and Switzerland, where he maintains tax residency.
Mittal has reportedly purchased substantial property on Dubai’s Naïa Island, adding to his existing mansion in the UAE. His departure follows similar moves by other wealthy entrepreneurs concerned about potential tax increases.
Inheritance Tax Concerns
Sources close to Mittal revealed that inheritance tax concerns primarily drove his decision. “It wasn’t the tax on income (or capital gains) that was the issue,” one adviser told The Sunday Times. “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 U.K. Treasury.”
While the UK levies death duties up to 40%, both Dubai and Switzerland have no inheritance tax, making them attractive alternatives for wealthy individuals.
Following Other Entrepreneurs
Mittal’s relocation follows India-born tech entrepreneur Herman Narula, founder of AI-focused Improbable, who recently announced his move to Dubai. The 37-year-old, who lived in England since age two, expressed frustration about potential exit taxes.
“It’s completely insane. I’m being told I’d have to pay a tax if I leave even if I haven’t sold the shares,” Narula stated. Even after the government reportedly scrapped exit tax plans, Narula maintained: “I’m still leaving. They’re clearly thinking about it. What stops them doing it in the next Budget?”
Budget Uncertainty
The tax exodus appears linked to Revolut co-founder Nik Storonsky’s departure to the UAE, which would help him avoid potential £3 billion capital gains tax liabilities. Treasury Department policy fluctuations ahead of Wednesday’s Autumn Statement have undermined government assurances about UK investment stability, creating uncertainty among wealthy residents considering their options.
