Lakshmi Mittal, one of Britain's richest men, leaves UK amid tax overhaul

"Lakshmi Mittal, the steel magnate who dominated The Sunday Times Rich List for more than a decade, has left the UK after nearly 30 years, becoming the latest billionaire to relocate following Labour's tax reforms. The ArcelorMittal founder, once the UK's wealthiest resident and still worth £15.4 billion, has moved his tax residency to Switzerland and plans to spend much of his time in Dubai, where he already owns a mansion and is now developing multiple luxury properties on the new Naïa Island."

"Mittal's departure comes just days before Chancellor Rachel Reeves delivers her second Budget, expected to include a fresh round of tax increases targeted at high earners and wealthy households as she works to close a £20 billion hole in the public finances. His exit follows widespread anger among the super-rich after Reeves' first Budget increased capital gains tax, reduced entrepreneurs' relief, and changed inheritance rules for family firms."

"But it was April's decision to abolish the non-dom tax regime - used by wealthy international residents for more than 200 years - that prompted Mittal's move. A close adviser said inheritance tax was the decisive factor. "It wasn't income or capital gains tax," the adviser said. "The issue was inheritance tax. Many wealthy overseas families cannot understand why all of their global assets should be subject to UK inheritance tax. They feel they have little choice but to leave -"

Lakshmi Mittal has left the UK after nearly 30 years, moving his tax residency to Switzerland and planning to spend significant time in Dubai while developing luxury properties on Naïa Island. The departure precedes a Budget expected to raise taxes on high earners as the government seeks to close a £20 billion fiscal gap. Earlier Budget measures provoked anger among the super-rich by raising capital gains tax, cutting entrepreneurs' relief, and altering inheritance rules for family firms. The abolition of the non-dom regime and inheritance tax exposure prompted the decision, with UK estates potentially taxed up to 40% compared with zero in Dubai.

Read at Business Matters