UK’s Tax Bomb Hits the Rich: Indian-Origin Steel Billionaire Lakshmi Mittal Plans Exit
40% Inheritance Tax is making the rich rethink living in the UK. The government wants the rich to pay on everything they own worldwide, not just in the UK...
The UK has taken a major decision to end a special tax rule that protected the rich from paying tax on foreign wealth. And this is worrying the rich in the country. They'll have to pay for everything they own worldwide. Notably, the inheritance tax is about 40%, which is why Lakshmi Mittal, the Indian-origin steel billionaire, is shifting out of the country. The official announcement has not been made yet. However, the signs are all clear. So, what's the big deal with the new tax rule? Will other rich people in the country exit, too? For all that, learn more.
About Lakshmi Mittal
- He was born in Rajasthan and studied commerce in Kolkata.
- He built his very first steel plant in Indonesia in 1976.
- The company rebranded as ArcelorMittal, one of the world's largest steel companies.
- ArcelorMittal roughly makes $60+ billion a year.
- And his personal net worth is around $21.4 billion.
Mittal moved to London in 1995, where he bought a £57 million mansion in Kensington (“Taj Mittal”) with:
- Jewel-studded swimming pool
- Turkish baths
- Ballroom
- Parking for 20 cars
- Not just that, he is also known for donating millions to the Labour Party and charities.
The UK Is Removing a Special Tax Rule
(that benefited the super-rich)
The new tax rule is called the non-domiciled (non-dom) tax status.
What Is the Non-Dom Status?
Think of it this way:
If you have lived in the UK for a long time and you have money, businesses, or properties outside the UK, the government doesn't have to charge you for your foreign income. Well, not anymore.
The previous tax rule saved ultra-rich people millions in taxes. Especially on:
- Foreign income
- Foreign investments
- Family wealth abroad
- Inheritance passed to the kids
- Mittal benefited from the exemption, and while it's now changed, it's making him move out.
What Has Changed Now?
Simply, the government wants the wealthy to pay more tax, so they are:
Abolishing the non-dom status:
The rich must pay on everything they own worldwide, not just the UK income.
Bringing in a “Super-Rich Tax”
The new tax will come into effect after the November 26 budget.
This will:
- Tax global income
- Tax global assets
- Increase tax rates for the rich
- Make inheritance tax (IHT) stricter.
They Had Even Planned an “Exit Tax”
Earlier, the government had this thought as well: if one wanted to leave the UK, to avoid the new taxes, they would have to pay at least 20% tax just to exit. The idea was later dropped.
This leaves the wealth a cooling period to decide and make an early exit.
What Was Mittal Really Worried About?
According to several reports, his biggest concern is inheritance tax (IHT). The new tax mandates the government to take 40% of wealth.
- The first £325,000 (around ₹3.8 crore) is tax-free.
- Everything above that gets taxed at 40%.
- Mittal’s net worth is $21.4 billion, so being in the UK would mean his family would lose billions (and nearly half) to tax.
Who Else Is Leaving the UK?
Reportedly, several others are also exiting the country following the new tax changes:
- Tech founders Herman Narula & Nik Storonsky
- Former footballer Rio Ferdinand
- Egyptian billionaire Nassef Sawiris
All worry about one thing: the UK is no longer friendly to business or global wealth.
Sakshi Jadhav
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