Winning Bizness Desk

Mumbai. The tightening tax regime in the United Kingdom has prompted global steel tycoon Lakshmi Mittal to consider shifting his primary base out of the country. According to reports, the billionaire, who heads the world’s second-largest steelmaker ArcelorMittal and ranks among the wealthiest individuals in Britain, is preparing to relocate to Dubai as the new Labour government weighs major tax hikes on high-net-worth residents.

UK preparing higher exit and inheritance taxes

The new economic approach under Chancellor Rachel Reeves is driving major changes in the country’s tax system. Reeves is aiming to raise 20 billion pounds to repair the British economy, and her upcoming budget on November 26 is at the centre of speculation that a 20 percent exit tax could be introduced.

Key tax changes under consideration include:

• Capital gains tax already raised from 10 percent to 14 percent from April 2025
• Capital gains rate expected to reach 18 percent in 2026
• Concerns that global assets of wealthy non-domiciles will fall under UK inheritance tax

A family adviser close to Mittal said inheritance tax remains the biggest worry, as UK rules can impose up to 40 percent tax on worldwide assets of long-term residents. Many wealthy foreign nationals see this as unfair and unsettling, leading to an accelerated departure of global investors.

Growing trend of wealthy leaving the UK

The planned shift by Mittal mirrors a broader outflow of entrepreneurs and investors from the UK. Dubai and Switzerland have emerged as preferred destinations because they impose zero inheritance tax and offer a stable policy environment. Reports indicate Mittal already owns a luxury mansion in Dubai and has purchased land on the NA Island in the UAE, making a relocation smoother.

Other high-profile departures include:

• Revolut co-founder Nik Storonsky moving to the UAE to avoid steep capital gains liabilities
• India-born Herman Narula of Improbable AI preparing to move to Dubai despite living in Britain since age two

The trend reflects rising global anxiety that Britain may impose more tax hikes in the coming months, with repeated rumours ahead of Reeves’ budget statement.

Concerns for UK economy and investment climate

The potential exit of Mittal, one of Britain’s richest residents and an influential investor, is seen as a setback for the UK economy. Wealthy business leaders contribute large tax revenues, generate jobs and draw international investments. Critics believe that Labour’s taxation strategy risks weakening Britain’s attractiveness as a business hub at a time when economic stability is crucial.

Key concerns raised by analysts include:

• Loss of investor confidence in UK’s fiscal direction
• Reduced flow of foreign capital into key sectors
• Possible long-term impact on job creation and business expansion

Mittal’s long journey from India to London

Lakshmi Mittal, with an estimated net worth of nearly 15.4 billion pounds, moved to London in 1995 and eventually became the most prominent Indian-origin businessman in the UK. He is the 12th richest Indian globally and stands at the 104th position worldwide in Forbes’ rich list.

His business highlights:

• Chairing ArcelorMittal, the world’s second-largest steel producer
• Acquiring Essar Steel in 2019 for 59,000 crore rupees with Japan’s Nippon Steel
• Passing the CEO role to his son Aditya Mittal in 2021 while remaining executive chairman

Mittal’s presence became synonymous with London’s upscale Kensington Palace Gardens, popularly called Billionaires’ Row, where he owns multiple properties including the famous Taj Mittal residence.

Dubai and Switzerland emerging as preferred bases

Despite preparing to shift his main base, Mittal is expected to retain his London properties, but long-term wealth planning appears to be driving the shift to tax-friendly global destinations. Zero inheritance tax in Dubai and Switzerland is a key draw for ultra-rich families planning future generations’ financial continuity.

Mittal’s next possible move:

• Long-term concerns over UK tax instability
• Preferable wealth-transfer rules in Dubai and Switzerland
• Existing real estate foothold in the UAE
• Increasing migration of global entrepreneurs from the UK

The expected relocation underlines a major shift in the world of global wealth management, where rising tax pressures are pushing influential business leaders to rethink their long-held bases and move toward regions promising financial predictability and stability.