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The non-dom tax regime, which had been in place for 226 years, allowed UK residents with a permanent home abroad to avoid paying British tax on foreign income
Lakshmi Mittal
Steel magnate Lakshmi Mittal is reportedly weighing the option of leaving the UK in response to the Labour government’s decision to abolish the “non-dom” tax regime, a move that could make him one of the wealthiest figures to relocate.
According to the Financial Times, Mittal has expressed that the government’s plan to end tax exemptions on certain foreign income and gains is a major factor in his potential departure.
Having lived in the UK for nearly three decades, Mittal is said to be exploring his options and is expected to make a final decision within this year. A friend of Mittal told the Financial Times, “He is exploring his options and will take a final decision over the course of this year. There is a good chance he will cease to be a UK tax resident.”
Mittal, who ranked seventh on the Sunday Times Rich List last year with an estimated fortune of £14.9 billion, owns numerous high-value properties across Europe, the US, and Asia, including a mansion in London’s prestigious Kensington Palace Gardens and a chalet in the Swiss resort town of St Moritz. Sources have also indicated that he has been making investments in Dubai’s real estate market.
The self-made billionaire is best known for transforming his steel business into ArcelorMittal, the world’s second-largest steel producer. In 2021, he stepped down as CEO, passing the role to his son, Aditya Mittal, while continuing to serve as executive chairman. The Mittal family retains a 40% stake in the €24 billion company.
If Mittal decides to leave the UK, he will join a growing list of wealthy individuals relocating to tax-friendly jurisdictions such as the United Arab Emirates, Switzerland, and Italy, following the Labour government’s tax overhaul.
The non-dom tax regime, which had been in place for 226 years, allowed UK residents with a permanent home abroad to avoid paying British tax on foreign income. In March 2024, then-Conservative Chancellor Jeremy Hunt announced plans to scrap the policy, which was later reaffirmed by Labour’s Chancellor Rachel Reeves in the October Budget. Reeves also introduced tighter inheritance tax rules, closing the offshore trust loophole used for tax avoidance.
Critics of the tax overhaul warn that the departure of high-net-worth individuals could hurt the UK economy, highlighting their significant contributions through income, consumption, employment, and philanthropy.
UK taxpayers who relocate abroad can typically spend up to 90 days a year in the UK, with no more than 30 working days annually, according to the Financial Times.
