Why Billionaire Lakshmi Mittal Is Leaving the UK: Inheritance Tax Concerns Drive Steel Tycoon to Dubai

Lakshmi Mittal relocated to London in 1995.

Indian-origin billionaire Lakshmi Mittal, who has long established his base in the United Kingdom, is reportedly departing the country as the Labour government introduces major tax reforms targeting high-net-worth individuals. According to The Times, Mittal, currently registered as a tax resident in Switzerland, will now spend the majority of his time in Dubai.

The apparent reason behind Mittal's departure connects to the UK's elimination of the long-established "non-domiciled" (non-dom) tax status. No official statements have been released yet. Previously, this status permitted wealthy residents to pay taxes exclusively on income generated within the UK, shielding global assets from inheritance tax.

With the anticipated "super-rich tax" expected to be enacted in the upcoming budget on November 26, UK's wealthy elite will face increased taxation on their total wealth and income, including assets held internationally. They might have also faced up to 20 percent tax when leaving the country to avoid payments, though this "exit tax" was subsequently abandoned.

For the steel magnate, reports indicate that inheritance tax rather than income or capital gains tax was the primary concern.

Born in Rajasthan, Lakshmi Mittal entered his family's steel business after completing a commerce degree from the University of Calcutta. He established his first steel facility in Indonesia in 1976, which eventually transformed into the global steel giant ArcelorMittal following the 2006 merger with Europe's Arcelor.

ArcelorMittal currently generates over $60 billion in revenue annually and employs more than 125,000 people worldwide. Mittal's net worth is estimated at $21.4 billion, positioning him as the 12th-richest Indian and 104th-richest person globally. The family maintains control of nearly 40 percent of the company.

Mittal moved to London in 1995. He acquired some of Britain's most luxurious properties, including his 55,000 sq ft Kensington Palace Gardens mansion, "Taj Mittal," purchased for £57 million (approximately Rs 593 crore) in 2004.

The estate features Turkish baths, a jewel-encrusted swimming pool, a ballroom, and parking accommodations for 20 vehicles. He has contributed millions to the Labour Party and supported philanthropic initiatives including Great Ormond Street Hospital, UNICEF, and Oxford University.

Inheritance Tax (IHT) is imposed when an estate exceeds 325,000 Pounds (around Rs 3.8 crore or higher with home allowances). The tax rate on the value above this threshold is 40 percent. Advisers informed Business Today that "individuals in this situation feel they have little alternative but to depart and are either sad or angry about doing so."

Dubai and Switzerland, unlike the UK, do not impose inheritance tax. Mittal already owns a mansion in Dubai's Emirates Hills and has invested in additional property developments in the emirate.

Other high-profile departures include tech founders Herman Narula and Nik Storonsky, former footballer Rio Ferdinand, and Egyptian tycoon Nassef Sawiris. Many cite the UK's evolving tax regime as diminishing its attractiveness for global wealth and business.