Billionaire Lakshmi Mittal considers leaving UK amid tax crackdown on non-doms: Report | World News
Lakshmi Mittal, the billionaire steel tycoon who has called the United Kingdom home for nearly 30 years, is preparing to leave the country in response to the government’s recent reforms targeting non-domiciled residents, according to a report Financial Times (FT).The move would make Mittal one of the wealthiest individuals to depart due to the new tax policies, which are designed to end a long-standing system that allowed some UK residents to avoid paying taxes on foreign income.
According to those close to the Indian-born businessman that FT spoke to, Mittal is actively considering his options and could finalize his decision later this year. “He is exploring his options and will take a final decision over the course of this year,” said one associate familiar with the matter. “There is a good chance he will cease to be a UK tax resident.”
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Mittal, whose fortune was valued at £14.9 billion in 2024, was ranked seventh on The Sunday Times l of Britain’s wealthiest people. He owns several high-profile properties, including a mansion on Kensington Palace Gardens in London, famously purchased from former Formula 1 boss Bernie Ecclestone in 2004 for £67 million, then the most expensive home in the world. Additionally, Mittal has extensive holdings around the world, with homes in Europe, the US, and Asia. Most recently, he has been acquiring real estate in Dubai, according to people familiar with his investments quoted in the report.
Mittal’s potential departure comes in the wake of the Labour government’s decision to abolish the “non-dom” regime, which allowed UK residents who declared their permanent home to be overseas to avoid paying British taxes on income earned abroad.
Mittal’s rise to prominence has been driven his steel conglomerate, ArcelorMittal, which he built into the world’s second-largest steel producer. Four years ago, he stepped back from his role as CEO, handing the reins of the company to his son, Aditya Mittal, while assuming the role of executive chairman. The Mittal family still retains 40 per cent ownership of the company, which has a market value of €24 billion.
Mittal is not alone in considering relocation due to the changing tax landscape in the UK. The Labour government’s move to dismantle the non-dom regime has prompted a growing number of wealthy foreign residents to explore leaving the country in favour of jurisdictions with more favourable tax policies. The United Arab Emirates, Italy, and Switzerland have emerged as popular destinations for high-net-worth individuals seeking relief from Britain’s newly tightened tax rules.Story continues below this ad
The abolition of the non-dom regime, announced Labour Chancellor Rachel Reeves in her October 2024 Budget, was a key aspect of the party’s economic agenda. The Labour government has been eager to close tax loopholes, including those that allowed individuals to shield offshore income from UK taxation. Reeves went further eliminating the use of offshore trusts to avoid inheritance tax, which is levied at a 40 per cent rate.
UK tax laws impose strict limits on individuals who choose to leave but continue to maintain ties to the country. Under current rules, individuals who are no longer tax residents may only visit the UK for up to 90 days a year, with the additional restriction that they can work no more than 30 days within that period.
Critics of the government’s decision to abolish the non-dom system argue that it may ultimately harm the UK’s economy driving away some of the wealthiest individuals who contribute to tax revenues through consumption and other forms of economic activity. Despite these concerns, the Labour government has remained firm in its stance, emphasizing fairness in the tax system and the need to close loopholes that disproportionately benefit the ultra-wealthy.
