Steel magnate Lakshmi N. Mittal, often seen as a symbol of Britain’s open-door financial policy for global wealth, has left the UK for Dubai amid a tightening tax climate.
After nearly three decades in London and having reached eighth on Britain’s rich list, Mittal’s departure marks another chapter in the country's ongoing wealthy exodus.
Mittal, who chairs steel giant ArcelorMittal, has been a fixture of London’s billionaire scene since moving to the UK in 1995.
His main residence, a lavish mansion on Kensington Palace Gardens, is famous for its opulence and storied history, yet it will not be sold despite his change in domicile.
Instead, Mittal will now split his time between his new Swiss residency and property in Dubai, notably on the exclusive Naïa Island.
What Sparked Mittal’s Move from the UK?
The immediate catalyst for Mittal’s departure was the UK Labour government’s recent abolition of the non-domicile tax regime and tightened rules around inheritance taxes.
Under the revised system, long-term residents are subject to up to 40 percent tax on their global assets, which proved too steep for Mittal and his advisers.
They cited frustration over the UK taxing assets acquired abroad and difficulties reconciling this approach with global standards.
Sources close to Mittal confirmed the shift was driven by inheritance and capital gains tax concerns.
The changes risk reducing the UK’s appeal to internationally mobile high-net-worth individuals, especially as more countries compete for their residency and wealth under increasingly lenient fiscal conditions.
Did you know?
Lakshmi Mittal’s residence on Kensington Palace Gardens was nicknamed 'Taj Mittal' and features marble from the same quarry as the Taj Mahal.
How Are UK Tax Changes Reshaping Wealth Migrants’ Plans?
The UK’s decision to scrap the non-domicile regime in April 2025 sent a wave of uncertainty through London’s financial elite. Traditionally, this rule allowed foreign-born residents to shield overseas income from British taxation, but its removal has made the UK much less competitive for global billionaires.
Added to this are new levies on capital gains and family business transfers, leaving many wealthy families to reconsider their presence in the country.
This latest round of departures is not limited to Mittal. Recent weeks have seen high-profile names such as Nik Storonsky and Herman Narula relocate to Dubai, making them part of a growing trend.
Data from the Henley Private Wealth Migration Report projects that 16,500 millionaires will exit Britain in 2025, pulling an estimated $91.8 billion out of the UK’s economy.
Why Is Dubai the Choice for the Ultra-Wealthy?
Dubai stands out for its zero inheritance tax, no restrictions on global assets, and attractive residency schemes tailored for high-net-worth individuals.
For Mittal, already accustomed to a global lifestyle, the move offers greater flexibility and fiscal predictability.
The UAE’s high-end real estate market provides privacy, security, and luxury demanded by billionaire families.
Additionally, Switzerland’s long-standing position as a haven for wealthy expatriates allows Mittal to benefit from an environment with clear, stable taxation laws.
This dual residency arrangement affords the steel billionaire peace of mind and the opportunity to more robustly plan for legacy and succession issues.
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What Could Labour’s Budget Mean for High Net Worth Residents?
Chancellor Rachel Reeves is set to deliver her second budget, widely anticipated to raise revenue targets as the government seeks to bridge a multi-billion-pound shortfall in public finances.
Further measures may include tightening reporting rules, imposing new family transfer levies, or broadening the tax base for trusts and global assets.
This climate of uncertainty is a key push factor for both established and emerging wealthy residents. Labour leaders defend the changes as necessary to ensure social equity and to fund core public services.
However, critics warn these reforms could result in net negative outcomes, with capital, entrepreneurship, and philanthropic investment shifting overseas. The debate is likely to intensify if high-profile departures like Mittal’s continue throughout the year.
How Does Mittal’s Departure Affect the UK’s Financial Landscape?
Mittal’s exit is largely symbolic yet represents a broader challenge for Britain’s status as a global wealth magnet. The capital flight expected from this year’s exodus may constrain real estate, professional services, and luxury markets reliant on high-net-worth individuals.
This situation foreshadows a potential realignment of global financial flows, as more jurisdictions adapt their regimes to capture displaced capital.
Reactions in the UK business community are mixed, with some arguing the move may pressure policymakers to reconsider how aggressively they target wealth.
As international investors watch closely, Britain’s approach to balancing fiscal needs and global competitiveness remains under scrutiny.
Looking forward, the country must decide whether it wishes to return to its legacy as a gateway for the world’s wealthy or double down on its new approach to taxation and fairness.
The outcome will shape not only Britain’s future as a financial center but also the strategies of global high-net-worth families seeking long-term stability in an era of rising tax nationalism.
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