Will Lakshmi Mittal Be the Next Billionaire to Leave? UK’s Non-Dom Tax Explained

Steel magnate Lakshmi Mittal, who has resided in the United Kingdom for three decades, is contemplating relocating due to the government's decision to abolish the non-domiciled (non-dom) tax status. This change affects UK residents who previously could avoid paying British tax on foreign income and gains. 

Lakshmi Mittal is an Indian steel magnate and the executive chairman of ArcelorMittal, the world's second-largest steel producer. Known for transforming a small steel business into a global empire, he has been a key figure in the industry for decades.

Is Mittal Leaving UK?

Mittal ranked as the seventh wealthiest individual in Britain with an estimated fortune of £14.9 billion, has informed associates that he is exploring options and may cease to be a UK tax resident by the end of the year. A friend of Mittal stated, "He is exploring his options and will take a final decision over the course of this year."

Mittal On Non-Dom Tax

The UK's non-dom regime, which allowed residents to avoid paying British tax on foreign income, is set to be abolished from April 2025. This policy change has prompted several wealthy individuals to consider leaving the UK for countries with more favorable tax regimes, such as the United Arab Emirates, Italy, and Switzerland. 
 

The departure of high-net-worth individuals like Mittal could have significant economic implications. Critics argue that the exodus of wealthy residents may harm Britain's growth prospects, as these individuals contribute to the economy through taxes and philanthropy.

 The number of millionaires in the UK is projected to fall by a fifth by 2028, partly due to changes in the non-dom tax status and high tax levels. 

Billionaire Of Uk

Lakshmi Mittal's consideration to leave the UK underscores the broader impact of the government's tax reforms on the country's affluent residents. As the UK implements these changes, the potential departure of high-profile individuals raises questions about the long-term economic effects of the new tax policies.