Lakshmi Mittal, one of Britain’s richest individuals and the owner of ArcelorMittal, the world’s second-largest steel company, is preparing to leave the United Kingdom due to rising tax pressures. According to a report by The Sunday Times, Mittal has reportedly made this decision following the new Labour government’s plans to impose heavier taxes on wealthy individuals. Mittal, who has Indian origins, has an estimated net worth of around ₹1.8 lakh crore, making him the 8th richest person in the UK. One of the major triggers behind this move is the potential introduction of a 20% “exit tax” on people leaving the UK. The newly appointed Chancellor of the Exchequer, Rachel Reeves, aims to raise £20 billion (approximately ₹2.3 lakh crore) to revive the country’s economy. Reeves is set to present her national budget on November 26, where this exit tax may be announced. Recently, the government had already hiked capital gains tax from 10% to 14%, with another increase expected in 2026, raising it to 18%. A key concern for Mittal and many high-net-worth individuals is the inheritance tax, which in the UK can go as high as 40% on global assets. In contrast, countries like Dubai impose zero inheritance tax, making them far more attractive for billionaires looking to safeguard generational wealth. After the UK scrapped its long-standing “non-domicile status” earlier this year, many wealthy residents began considering relocation. This 200-year-old system allowed rich foreigners to pay tax only on the income they generated within the UK. Mittal already owns a luxurious residence in Dubai, and reports suggest that he has purchased land on the UAE’s iconic islands. Both Dubai and Switzerland have become hotspots for the wealthy, thanks to their favourable tax laws, especially zero inheritance tax. As a result, many global business families have started shifting to these regions. Mittal’s move comes at a time when several other major businessmen and investors are already leaving the UK due to policy instability and fears of future tax increases. Revolut co-founder Nik Storonsky has relocated to the UAE to avoid a massive capital gains tax bill. Similarly, Indian-origin entrepreneur Herman Narula, founder of Improbable AI, is moving to Dubai despite spending nearly his entire life in the UK. Economists warn that such departures could significantly harm the UK’s economy. Billionaires like Mittal not only pay substantial taxes but also generate employment and bring large-scale investments. Critics argue that the Labour Party’s aggressive tax approach risks driving away wealth creators at a time when the UK needs economic recovery. Mittal first moved to London in 1995 and quickly rose to become one of the most influential Indian businessmen in the UK. According to Forbes, he is currently the 12th richest Indian and the 104th richest person globally. In 2019, ArcelorMittal, in partnership with Japan’s Nippon Steel, acquired Essar Steel for ₹59,000 crore, one of the biggest deals of the year. In 2021, Mittal handed over the CEO role of ArcelorMittal to his son Aditya Mittal but continues to serve as Executive Chairman, overseeing major strategic decisions. Mittal owns several high-value properties in London’s exclusive Kensington Palace Gardens, popularly known as “Billionaires’ Row.” The most famous among them is the lavish residence known as “Taj Mittal.” Although Mittal is expected to retain a large residence in London, he reportedly plans to shift his primary base to Dubai or Switzerland to ensure his future generations do not face heavy inheritance taxes in the UK.
Lakshmi Mittal Plans to Leave UK Over Rising Taxes; May Shift Base to Dubai
