In a significant development shaking Britain's business community, Indian-origin steel magnate Lakshmi Mittal has decided to depart the United Kingdom. This move comes as the Labour government under Chancellor Rachel Reeves prepares to implement substantial tax reforms specifically targeting the ultra-wealthy, according to a report published by The Sunday Times on November 23.
The Dubai Shift and Naïa Island Investments
The founder of ArcelorMittal, who was previously based in London, has now established tax residency in Switzerland. Mittal plans to spend considerable time in Dubai, where he already maintains significant property holdings. Recent reports indicate he has acquired substantial tracts of land in the intriguing Naïa Island development, signaling a long-term commitment to establishing his base in the United Arab Emirates.
According to the prestigious 2025 Sunday Times Rich List, Mittal's fortune stands at an impressive £15.4 billion, positioning him as the eighth wealthiest individual in Britain. His departure represents a notable loss to the UK's business landscape and tax revenue base.
Wealth Tax Fears Triggering Elite Exodus
The steel tycoon's relocation occurs against a backdrop of widespread apprehension among wealthy UK residents regarding anticipated tax increases. Chancellor Rachel Reeves is actively seeking measures to address a substantial £20-billion shortfall in Britain's financial resources.
Her inaugural Budget last year implemented several significant changes, including:
- Increased capital gains tax rates
- Reduced entrepreneurs' relief benefits
- New levies on family business transfers
Market speculation suggests additional measures might be forthcoming, potentially including a 20% exit tax on wealthy individuals departing the UK. These possibilities have created considerable unease among high-net-worth families contemplating their future in Britain.
Inheritance Tax: The Final Straw
According to an adviser familiar with the Mittal family's strategic planning, inheritance tax concerns—rather than income or capital gains taxes—proved to be the decisive factor in their relocation decision.
"It wasn't the tax on income or capital gains that was the issue," the adviser revealed to The Sunday Times. "The critical concern was inheritance tax. Numerous wealthy international individuals struggle to comprehend why the UK Treasury should claim authority over all their global assets through inheritance taxation."
The adviser further emphasized that the impending policy changes have left many global elites feeling compelled to seek alternative jurisdictions with more favorable tax environments.
This development highlights growing tensions between the UK government's revenue requirements and its ability to retain ultra-wealthy residents, particularly those with international business interests and global asset portfolios.
