Steel tycoon Lakshmi Mittal has officially left the United Kingdom, becoming the latest billionaire to depart amid significant tax policy changes under Chancellor Rachel Reeves. The ArcelorMittal founder, previously ranked among Britain's wealthiest individuals, has established tax residency in Switzerland and will divide his time between there and Dubai.
The End of Non-Dom Status Sparks Departure
According to reports from The Sunday Times, Mittal's decision follows months of speculation about wealthy individuals leaving the UK in response to Labour's tax reforms. The crucial factor appears to be the abolition of the non-dom regime, which previously allowed certain individuals to avoid paying UK tax on foreign income and assets.
Sources close to the situation indicate that Mittal informed associates of his plans back in March, specifically citing the government's decision to end the non-dom status. The requirement for former non-doms to pay inheritance tax on overseas assets proved particularly significant in his decision-making process.
The Sunday Times Rich List currently values the steel magnate at £15.4 billion, making his departure a substantial loss to the UK's tax base. His confirmed exit comes just days before Reeves' Budget is expected to introduce additional taxes targeting those with the "heaviest shoulders."
Growing Exodus of Wealth Creators
Mittal represents one of the most high-profile departures in a growing trend of billionaires leaving the UK. He joins several other prominent business figures who have recently relocated, including:
- Aston Villa owner Nassef Sawiris
- Goldman Sachs banker Richard Gnodde
- Revolut founder Nikolay Storonsky
- Shipping tycoon John Fredriksen, who famously declared the country had "gone to hell"
The budget lead-up has seen increased pressure from left-wing Labour MPs for the implementation of a wealth tax. Chancellor Reeves has pointed to several measures already targeting affluent individuals, including:
- Closing tax reliefs for family businesses and farmers
- Increasing capital gains taxes
- The aforementioned termination of non-dom status
Upcoming Budget Measures and Criticism
The forthcoming Budget is anticipated to introduce further measures affecting the wealthiest residents. Reports suggest these may include a "mansion tax" imposing higher levies on properties falling within the highest council tax bands.
Properties valued above approximately £2 million could face an annual charge in addition to existing council tax bills. This proposal has drawn criticism from economic experts, including Helen Miller, director of the Institute for Fiscal Studies.
Miller questioned the approach, stating: "It has the air of trying to scrape a bit more money where you need it, as opposed to just grasping the nettle. Once you've done that much revaluation, couldn't you just revalue the whole stock, and then actually update council tax? If not now, when?"
Meanwhile, various lobby groups, including think tanks representing entrepreneurs, have written to the Chancellor urging policies to attract wealth creators to the UK rather than driving them away.
