Indian-origin ‘steel king’ Lakshmi Mittal leaving Britain over rising taxes:Eighth-richest Briton preparing move to Dubai

Lakshmi Mittal, owner of ArcelorMittal—the world’s second-largest steel company—and one of Britain’s wealthiest billionaires, is preparing to leave the UK. According to a report by The Sunday Times, Mittal has taken this step in response to the new Labour Party government’s plan to raise taxes on high-net-worth individuals. Mittal, who is of Indian origin, has an estimated fortune of £15.4 billion (around ₹1.8 lakh crore), making him the eighth-richest person in the country. Britain Considering A 20% ‘Exit Tax’ The Labour government, led by Chancellor Rachel Reeves, is attempting to raise £20 billion (about $26 billion) to strengthen the country’s economy. Reeves is set to present her budget on November 26, and there is speculation that it may include additional tax hikes—such as higher income tax rates for top earners, revisions in property levies, or an “exit tax” for those relocating abroad. Last year’s budget already increased capital gains tax and introduced new taxes on family business transfers. Now, experts believe the government may impose a 20% exit tax on wealthy individuals leaving the UK. Meanwhile, possible changes to inheritance tax have triggered concern among many business leaders, including Mittal. A family advisor to Mittal noted that income tax and capital gains tax were not the main issues: “The real concern is inheritance tax. Many wealthy people who come from abroad cannot understand why Britain should have the right to tax their worldwide assets.” According to the advisor, such policies are prompting a growing number of wealthy individuals to consider leaving the country. What Is Mittal’s Plan? Lakshmi Mittal is shifting his tax base to Switzerland, where the taxation system is more favorable. Alongside this, he is expanding his property investments in Dubai. He has already bought land on Palm Island—one of the most sought-after locations for global millionaires. Mittal isn’t the only one leaving. Herman Narula, a 37-year-old British-Indian entrepreneur and founder of the AI company Improbable, is also relocating from the UK to Dubai in response to the new tax measures. Narula has lived in Britain since the age of two. Impact On Britain Mittal’s departure is worrying for the UK government because individuals like him not only contribute significant tax revenue but also bring investment and jobs. Labour’s policies, critics say, are increasing the risk of an exodus of wealthy residents. The report notes that many international business leaders are considering leaving the UK. The government aims to reduce national debt and strengthen welfare programmes, but opponents argue that its approach may ultimately weaken the nation’s economy. Recent Tax Policy Changes In The UK The Labour government, elected in 2024, had promised not to raise Income Tax, Employee National Insurance (NI), or VAT for “working people.” However, benefits for business owners and high-net-worth individuals have been scaled back. Key changes include: 1. Capital Gains Tax (CGT) Business Asset Disposal Relief (BADR) and Investors’ Relief rates will rise from 10% to 14% in April 2025, and further to 18% in 2026. As a result, many business owners are rushing to complete deals before April 2025 to take advantage of the lower rates. 2. Higher Employer National Insurance From April 2025, the employer NI rate will increase from 13.8% to 15%, while the threshold is being reduced from £9,100 to £5,000. This will raise payroll costs for businesses, affecting an estimated 940,000 employers—particularly small and medium-sized companies. 3. Stricter Inheritance Tax (IHT) Reliefs for businesses, farms, and pensions were removed in the previous budget. Loopholes related to agricultural land have also been closed. Now, estates may face up to 40% tax after death, prompting many wealthy families to restructure their assets. 4. Abolition of Non-Dom Rules From April 2025, the non-dom regime—which allowed wealthy foreign residents to avoid tax on overseas income—will be fully abolished. This change is pushing many international entrepreneurs, including Mittal, to consider relocating.