Steel tycoon Lakshmi Mittal looks to leave UK over govt's non-dom crackdown

Former ArcelorMittal CEO Lakshmi Mittal may be look to relocate to a destination that offer attractive tax incentives for high-net-worth individuals

Billionaire steel magnate Lakshmi Mittal is preparing to leave the United Kingdom after nearly three decades. This follows the UK government’s decision to abolish its non-domiciled (non-dom) tax status, according to a report by The Financial Times.

 

The Indian-born industrialist, who built ArcelorMittal into the world’s second-largest steel producer, is likely to give up his UK tax residency before the new rules take effect in April 2025. While his final decision remains pending, news report suggests that destinations such as Dubai, Switzerland, and Italy – all of which offer attractive tax incentives for high-net-worth individuals – are under consideration.

 

His decision comes in response to the Labour party’s crackdown on non-domiciled residents, which will require wealthy individuals to pay UK taxes on their global income and assets. The move has already prompted an exodus of wealthy individuals from the UK.

 

What is UK’s non-dom tax regime?

UK’s non-domiciled tax status allowed foreign-born residents to avoid paying British taxes on overseas earnings unless they transferred those funds to a UK account. The new system, championed by Labour Chancellor Rachel Reeves, will introduce a residence-based tax policy and bring foreign income under the UK inheritance tax framework. The government claims the reform will generate £2.7 billion annually by 2028-29, arguing that it will ensure a fairer tax system.

 

However, critics have warned that the policy could have the opposite effect, leading to a flight of capital and investment from the UK. Many of Britain’s wealthiest residents, including business leaders and investors, have already begun shifting their base to countries with lower tax rates.

 

Mittal’s businesses and net worth

Mittal moved to the UK in 1995. His company, ArcelorMittal, played a key role in shaping the global steel industry. He stepped down as CEO in 2021, handing over the reins to his son, Aditya Mittal, while retaining his role as executive chairman.

 

Mittal’s fortune is estimated at £14.9 billion and has a net worth of $18.5 billion, according to Forbes. He ranked seventh UK’s Sunday Times Rich List last year. Mittal owns multiple properties across the world, including a luxury chalet in St Moritz, Switzerland, and real estate holdings in the US and Asia. In London, he owns a mansion in Kensington Palace Gardens, purchased in 2004 for £67 million from former Formula 1 boss Bernie Ecclestone. His departure could mark a significant exit of Britain’s wealthiest entrepreneurs.