Lakshmi Mittal: Indian-born steel tycoon Lakshmi Mittal spent a long time in the UK and established his business base there. But now, news is emerging that he is leaving the UK and relocating to Dubai. This move appears to be linked not just to personal choice but to proposed tax reforms in the UK.
What impact did the abolition of the non-domicile tax have?
| Factor / Data | Details |
|---|---|
| Name | Lakshmi Mittal |
| Nationality | Indian-Origin |
| Previous Residence | United Kingdom |
| Current Tax Residency | Switzerland |
| New Primary Residence | Dubai |
| Reason for Exit | Abolition of UK Non-Domiciled (Non-Dom) Tax Status |
| Impacted Tax | Inheritance Tax primarily, not income or capital gains |
| Proposed Tax Reform | “Super-Rich Tax” in UK Budget 2025 |
| Exit Tax Status | Previously up to 20%, later dropped |
| Global Assets | Concern over higher tax on international holdings |
| Official Statement | None from Lakshmi Mittal |
| Government Action | Labour Government targeting high-net-worth individuals |
| Strategic Purpose | Protect wealth, long-term family and business planning |
For a long time, high-net-worth residents in the UK enjoyed the non-domicile tax status. Under this arrangement, they paid tax only on income earned in the UK and could shield their global assets from inheritance tax.
Now, with the abolition of this status, they may have to pay tax on their global assets as well. This change is particularly worrying for individuals with significant wealth like Lakshmi Mittal.
Super Rich Tax and Potential Impact
It was a true pleasure meeting my dear friend, Lakshmi Mittal, and his gracious wife at their beautiful home in London. I deeply admire his remarkable vision and pioneering contributions to the global steel industry, which have set new benchmarks of excellence and leadership.… pic.twitter.com/KlnqfsMo9K
— Hussain Sajwani (@HussainSajwani) August 18, 2025
The “Super Rich Tax,” to be introduced in the next UK budget, is likely to impose higher taxes on total wealth and income. Under this change, assets held abroad can also be taxed.
Previously, an “exit tax” of up to 20 percent was applicable upon leaving the country in such a situation, although this was later removed. In Mittal’s case, inheritance tax was a particular concern, as most of his wealth is concentrated globally.
Lakshmi Mittal’s New Residency and Tax Strategy
Mittal is currently a tax resident in Switzerland and will now primarily spend his time in Dubai. Dubai’s tax policy allows him to avoid the UK’s new tax regime.
For Mittal, this move is seen as important not only for tax savings but also for the long-term interests of his family and business. According to experts, this is a common move for high-net-worth entrepreneurs to plan globally.
Britain’s New Tax Policy and Economic Indicators
The UK’s Labour government aims to collect more taxes from high-net-worth citizens. This will increase the country’s tax base and promote social equality.
However, this policy may lead many large industrialists and investors to decide to leave the country. Lakshmi Mittal’s move is being seen as the first clear indication of the impact of this policy.
Is it just a tax issue?
While the primary reason is the tax system, the emotional and strategic considerations surrounding it are also important. High-net-worth individuals often consider future planning and family wealth protection. Mittal’s decision appears to be part of a strategy to safeguard his business, family, and global investments.
FAQs
Q1. Why is Lakshmi Mittal leaving the UK?
He is leaving due to the abolition of the non-dom tax status.
Q2. Where will Lakshmi Mittal spend most of his time now?
He will primarily reside in Dubai after leaving the UK.
Q3. What was the non-domiciled tax status in the UK?
It allowed residents to pay tax only on UK income.
Q4. Which tax concerned Mittal the most?
Inheritance tax on global assets was his main concern.
Q5. Has Lakshmi Mittal made any official statement yet?
No official statement has been released regarding his decision.
Disclaimer: This article is for informational and financial awareness purposes only. The information provided is based on news sources and should not be construed as investment or tax advice. Consult a qualified expert before making any personal financial decisions.
