London: British billionaire and steel tycoon Lakshminivas Mittal is reportedly considering relocating from the United Kingdom due to proposed heavy taxes on the nation’s wealthiest individuals. The move, if confirmed, would be part of a broader trend of ultra-wealthy business figures shifting their residency to low- or no-tax jurisdictions such as Dubai and Switzerland.
The UK government is set to announce its highly anticipated budget this week, which includes proposals for substantial inheritance and exit taxes on the country’s super-rich. Many industrialists, seeking to protect their assets, are exploring relocation options. Mittal, already spending significant time in Switzerland, could increasingly base himself in Dubai, where inheritance and exit taxes do not apply.
According to The Sunday Times rich list, Mittal, founder of ArcelorMittal, holds a fortune of £15.4 billion (approximately ₹18,000 crore), ranking him as the eighth wealthiest individual in the UK. He already owns a mansion in Dubai and has recently acquired a plot on the nearby “Naya Island,” signaling his potential long-term commitment to the UAE.
The primary concern for Mittal is not income or capital gains tax, but inheritance and exit taxes. Advisors say many wealthy foreigners struggle to understand why the UK imposes taxes on all their global assets. The planned 20% exit tax could significantly affect those leaving the country, in addition to the existing inheritance tax rate of up to 40%.
Other prominent Indian-origin businessmen, including Harman Narula, have already relocated to Dubai citing similar concerns. Narula remarked that even if he does not sell his shares in the UK, the prospect of exit tax obligations makes remaining in the country untenable.
Chancellor Rachel Reeves is expected to unveil the budget on Wednesday, aiming to address a projected £20 billion fiscal shortfall. Analysts suggest that Mittal’s potential move underscores the broader tension between retaining high-net-worth individuals in the UK and raising revenues from the wealthy.
Mittal’s decision, along with others in the UK’s elite, could have long-term implications for the country’s business environment and global investment landscape.
