Key Takeaways
- Steel billionaire Lakshmi Mittal is relocating from the UK to Dubai amid new wealth taxes.
- The Labour government’s abolition of ‘non-dom’ status and inheritance tax reforms are key drivers.
- Mittal joins other wealthy entrepreneurs leaving the UK due to the changing tax landscape.
Indian-origin steel magnate Lakshmi Mittal is leaving the United Kingdom following the new Labour government’s tax reforms targeting the super-rich. Reports indicate he will now spend most of his time in Dubai, despite being a current tax resident of Switzerland.
Why is Lakshmi Mittal Moving Out of the UK?
The primary reason appears to be the abolition of the UK’s long-standing ‘non-domiciled’ (non-dom) tax status. This status previously allowed wealthy residents to pay UK tax only on their UK-earned income, shielding their global assets from UK inheritance tax.
With the new ‘super rich tax’ expected in the November 26 budget, UK elites will pay more tax on their total wealth, including foreign-held assets. Those leaving to avoid payment could face a 20% exit levy.
For Mittal, inheritance tax was a particular concern, a source close to the family told Business Today.
What is the UK Inheritance Tax?
Inheritance Tax (IHT) is levied on an estate valued above a specific threshold (currently £325,000, potentially higher with property allowances) after a person’s death. The tax rate is typically 40% on the amount exceeding the threshold.
“People in this situation feel they have little choice but to leave and are either sad or angry to be doing so,”
The financial burden and uncertainty prompted Mittal’s move to Dubai, which, like Switzerland, imposes no inheritance tax.
Mittal already owns a mansion in Dubai’s Emirates Hills and has other property investments there.
A Broader Exodus of Wealth
Mittal’s departure is part of a wider trend. Other high-net-worth individuals like Herman Narula, Rio Ferdinand, and Nassef Sawiris are also leaving, viewing the UK’s tightened tax regime as less attractive for wealth and business investment.
