Indian-origin Steel Magnate Lakshmi Mittal is preparing to leave the United Kingdom after nearly three decades, driven by the Labour government’s recent tax reforms impacting wealthy individuals. Mittal’s decision comes as the government dismantled the longstanding "non-dom" tax status that allowed foreign nationals to shield offshore income from UK taxation. These changes, especially the imposition of inheritance tax on global assets, have prompted significant anxiety among high-net-worth residents, with Mittal now taking up tax residency in Switzerland and spending more time in Dubai.

Britain’s Business and Trade Secretary Peter Kyle acknowledged that tax increases, particularly the closure of loopholes for non-domiciled residents, are contributing to the departure of wealthy individuals. Kyle expressed concern about people feeling forced to leave the UK to succeed, citing not only billionaires but also other professionals and entrepreneurs who have relocated due to financial pressures and lack of funding support domestically. The government plans substantial further tax hikes, including a £30 billion package aimed at stabilizing public finances, which is intensifying the exodus.

Mittal, whose net worth is estimated at £15.4 billion, has been a prominent figure in British business and society, owning luxury properties in London and playing a major role in the country’s economy through his steel empire, ArcelorMittal. However, the new tax environment, especially fears over inheritance tax applying to worldwide assets, conflicts with the interests of many wealthy foreign residents like him, spurring their moves to more tax-friendly jurisdictions such as Dubai and Switzerland.

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The departure of Mittal highlights wider concerns about the UK's competitiveness in attracting and retaining global wealth and entrepreneurial talent. The government is attempting to address the outflow of entrepreneurs by seeking to improve funding for startups and businesses, but the challenge remains significant amid tightening tax policies. Mittal’s exit is expected to reignite the debate on balancing fiscal responsibility with maintaining an attractive environment for investment and wealth creation in the UK.

This development underscores the delicate balance between tax reforms and economic competitiveness, illustrating how shifts in fiscal policy can influence the residency decisions of the ultra-wealthy and impact the broader business landscape.

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