Steel Tycoon Lakshmi Mittal Leaves UK for Dubai Amid Labour Tax Fears
Indian-origin steel magnate Lakshmi N Mittal has decided to leave the UK, becoming the latest billionaire to exit ahead of the Labour government’s anticipated tax reforms targeting the super-rich.
Key Takeaways
- Lakshmi Mittal, UK’s eighth richest man worth £15.4 billion, relocates to Dubai
- Move comes ahead of Chancellor Rachel Reeves’ Budget announcement
- Primary concern cited is UK’s inheritance tax system
- Follows similar moves by other wealthy entrepreneurs from Britain
Tax Concerns Prompt Exit
According to The Sunday Times, the 75-year-old ArcelorMittal founder will now spend most of his time in Dubai, where he already owns a mansion and has purchased additional property on Naïa Island. Mittal has been a Swiss tax resident but maintained strong UK ties.
The industrialist’s departure comes as Chancellor Rachel Reeves prepares to address a £20 billion hole in UK finances through expected tax increases on wealthy individuals.
Inheritance Tax the Key Issue
An adviser familiar with the Mittal family’s move told The Sunday Times: “It wasn’t the tax on income (or capital gains) that was the issue. 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.”
The adviser added that affected individuals “feel they have little choice but to leave and are either sad or angry to be doing so.”
While UK death duties reach up to 40%, both Dubai and Switzerland have no inheritance tax.
Growing Trend Among Entrepreneurs
Mittal follows other high-profile departures including India-born tech entrepreneur Herman Narula, founder of AI-focused Improbable. The 37-year-old, who has lived in England since age two, revealed his Dubai relocation plans despite the government scrapping proposed exit tax measures.
Narula expressed concerns about policy stability: “I’m still leaving. The thing is, they’re clearly thinking about it, right? What if they change their mind? What stops them doing it in the next Budget?”
Revolut Founder’s Exit Influenced Policy
The exit tax discussion gained momentum after Nik Storonsky, co-founder of London-based Revolut, moved to UAE. His relocation avoids potential capital gains tax liability of approximately £3 billion should he sell his shares in the financial services company.
The series of policy reversals by the UK Treasury ahead of Wednesday’s Autumn Statement has reportedly undermined government assurances about making Britain a stable investment destination.
