Indian Steel Tycoon Lakshmi Mittal Considers Exiting UK After Three Decades Amid Tax Overhaul

Lakshmi Mittal, the UK-based billionaire chairman of ArcelorMittal, is said to be considering a move out of the UK following almost 30 years of living there. It follows the abolition by the Labour government of the "non-dom" tax system, under which high-earning foreign residents had been exempt from paying UK taxes on income earned abroad. Mittal, with an estimated net worth of about ₹145,140 crore (£14.9 billion), is one of Britain's richest men and has a collection of properties worldwide, such as a £70 million residence in London's Kensington Palace Gardens.

 

Key Details of the Decision

 

1) Tax Policy Change: The Labour government abolished the 226-year-old non-dom regime in October 2024, ending tax relief on foreign income and gains. Chancellor Rachel Reeves also shut loopholes in offshore trusts and inheritance tax.

 

2) Mittal's UK Connections: Mittal has lived in the UK since the 1990s and developed ArcelorMittal into the world's second-largest steelmaker. His London home, purchased from Bernie Ecclestone in 2004, was previously the world's most costly residence.

 

3) Global Real Estate Holdings: Outside of the UK, Mittal holds homes in Dubai, Switzerland, and the US. Recent purchases in Dubai indicate a possible relocation emphasis.

 

Wider Influence on UK's Affluent

 

Mittal's possible departure is part of a trend towards increasing numbers of ultra-high-net-worth individuals reconsidering their residency in the UK because of more stringent tax regimes. The UAE, Italy, and Switzerland are desired destinations for tax optimization.

 

Context: Indian Billionaires in London's Luxury Market

As Mittal weighs his departure, other Indian billionaires have made news for record deals in London:

 

1) Adar Poonawalla: CEO of India's Serum Institute, bought the £138 million Aberconway House in Mayfair in 2023, a record for Indian buyers.

 

2) Ravi Ruia: Co-founder of Essar Group, also bought Hanover Lodge for £113 million in 2023, another high-profile transaction.

 

Mittal's exit would be a symbolic change in the UK's attractiveness to global billionaires, highlighting the influence of policy shifts on elite migration dynamics.

 

Source: Business Today, The Economic Times, Financial Times