Lakshmi Mittal, the Indian-born steel magnate and a long-time fixture on Britain's rich lists, is reportedly leaving the United Kingdom amidst concerns over the Labour government's proposed tax reforms targeting the wealthy. Sources close to the billionaire indicate that Mittal's decision is largely driven by the government's move to abolish the "non-dom" tax status, which previously allowed foreign nationals to only pay UK taxes on income earned within the country.
Mittal, who has resided in the UK since 1995, is now reportedly a resident of Switzerland for tax purposes and intends to spend a significant amount of time in Dubai. While Mittal also has a mansion in Dubai, he has also invested in property on Naïa Island.
The impending budget announcement by Chancellor Rachel Reeves on Wednesday, November 26, 2025, is expected to include further tax increases on high-net-worth individuals, as the government seeks to address a significant deficit in the UK's finances. The abolition of the non-dom tax status, coupled with potential increases in inheritance tax, appears to be a key factor in Mittal's decision to relocate. An advisor familiar with the family's decision told The Sunday Times that inheritance tax was a major concern, as many wealthy individuals from overseas find it unreasonable to have all their assets, regardless of location, subject to UK Treasury inheritance tax.
The UK levies death duties at up to 40%, whereas Dubai and Switzerland do not have inheritance taxes.
Mittal's departure marks the end of a three-decade era in British business. His exit is seen as a sign of the increasing fiscal pressure on the wealthy and could potentially trigger further departures. There are concerns that these departures could undermine the government's efforts to promote the UK as a stable and predictable place for investment. The Labour Party has faced calls to introduce a wealth tax, but Reeves has highlighted the ending of the non-dom regime, closure of reliefs for family businesses and farmers, and increases to capital gains taxes as examples of how the government is already taxing the wealthy.
Mittal is not the first high-profile entrepreneur to leave the UK in anticipation of tax increases. Herman Narula, the India-born founder of AI-focused Improbable, has also announced plans to move to Dubai, citing concerns about having to pay tax even on unsold shares if he leaves the UK. The exit of Nik Storonsky, co-founder of Revolut, to the UAE, also raised concerns about potential capital gains tax liabilities.
