Lakshmi Mittal, the steel tycoon who dominated the Sunday Times rich list for more than a decade, has left the UK after nearly 30 years, becoming the latest billionaire to relocate following Labor’s tax reforms.
The founder of ArcelorMittal, once the UK’s richest resident and still worth £15.4 billion, has moved his tax residency to Switzerland and plans to spend much of his time in Dubai, where he already owns a mansion and is currently developing several luxury properties on the new island of Naïa.
Mittal’s departure comes just days before Chancellor Rachel Reeves presents her second budget, which is expected to include a new round of tax rises on high earners and wealthy households as she works to plug a £20 billion hole in the public finances. His exit follows widespread anger among the super-rich after Reeves’ first Budget increased capital gains tax, cut relief for entrepreneurs and changed inheritance rules for family businesses.
But it was the decision in April to scrap the non-dom tax system, used by wealthy international residents for more than 200 years, that prompted Mittal’s move. A close adviser said inheritance tax was the deciding factor.
“It wasn’t income tax or capital gains tax,” the consultant said. “The problem was inheritance tax. Many wealthy foreign families cannot understand why their entire global assets should be subject to UK inheritance tax. They feel they have no choice but to leave – and are sad or angry to do so.”
Under British rules, estates can be subject to a tax of up to 40%, compared to zero in Dubai and no tax for direct heirs in most Swiss cantons.
Mittal, 74, arrived in Britain in the 1990s and quickly became one of the country’s best-known tycoons – buying three mansions in Kensington Palace Gardens, donating millions to public causes and topping the rich list eight times. His London estate includes the £57 million Taj Mittal, built from marble from the same quarry as the Taj Mahal. Friends say there are no plans to sell.
His move marks one of the most conspicuous steps yet in the ongoing exodus of wealthy residents. Other recent departures include Norwegian shipping billionaire John Fredriksen, German investor Christian Angermayer and tech founders Herman Narula (Improbable) and Nik Storonsky (Revolut), all of whom cited UK tax policy as a driving factor.
Mittal built his empire after leaving India in the 1970s, eventually building ArcelorMittal through a series of aggressive takeovers of steel mills, which is now worth more than £25 billion and employs over 125,000 people worldwide. The Mittal family also owns shares in Aperam and HPCL-Mittal Energy.
He leaves behind a long history of philanthropy in the UK, from funding Great Ormond Street Hospital to supporting public libraries, churches, Unicef and the University of Oxford. His £16 million contribution to the ArcelorMittal Orbit Tower remains one of the enduring landmarks of the London 2012 Olympics.
A friend said his exit would be a loss for Britain. “It’s really sad. A lot of Brits have benefited from this family being here. Not anymore.”
