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The Financial Times reported that steel magnate Lakshmi Mittal has expressed, after 30 years of residency in the UK, that he may be considering moving out of the country due to the abolishment of the non-dom tax plan, which will impact him personally. If he chooses to, he would become one of the wealthiest business magnates to make such a move. \n\nThe article stated that Mittal most likely would be leaving the UK due to the government decision regarding non-dom tax which outlines the exemption of certain foreign income and profits. \n\n“Within this year, he will make a decision and it seems that living within the UK will no longer be an option,” a friend of Mittal shared with Financial Times. “It is likely he will stop living as a tax resident of the UK.” \n\nOwning luxurious estates in Asia, the US and Europe including the lavish chalet in St. Moritz as well as the mansion in Kensington Palace Gardens places Mittal on the rich list for owning an astounding $18.5 billion fortune. On top of that, sources from Financial Times claim Mittal has started to purchase real estate in Dubai which Mittal is now included in the top seven most wealthiest people in London.
In 2021, self-made billionaire Mittal, the winner of many a steel business challenge, transitioned from the position of CEO to executive chairman, handing over the reins of the company to his son Aditya Mittal. It's a smart business decision, considering the Mittal family’s steep 40 percent ownership stake in the company. Contratually, ArcelorMittal remains steered in the hands of the Mittals.
The Financial Times has stated that increases in tax from Labour’s overhaul means that if Mittal were to relocate from the UK, he'd not be the only wealthy person choosing to live in low tax regions like Italy, Switzerland, and the United Arab Emirates.
In March 2024, former-chancellor Jeremy Hunt proclaimed that the non-dom tax restriction, which granted residents with a permanent house abroad the luxury of not paying U.K. taxes on foreign income, would be eliminated. Labour's Chancellor Rachel Reeves reiterated this during the October budget, enforcing stricter inheritance tax laws by casting offshore trusts out as a mechanism for tax evasion.
Some will argue that this changes the game for high net worth individuals and the UK economy. After all, these individuals are responsible for significant tax contributions, income generation, and philanthropic endeavors to soften the blow on the economy – rich or poor.
The Financial Times states that British taxpayers living overseas generally have a cap of three months in the UK per year, with an allowance of 30 working days.
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