Steel billionaire Lakshmi Mittal reportedly latest to leave UK ahead of proposed tax squeeze on the ultra-rich
Billionaire Lakshmi Mittal has reportedly shifted her tax home to Switzerland after nearly three decades in the UK, becoming the latest ultra-rich person to head to friendlier financial turf ahead of Rachel Reeves’ budget.
Mr Mittal, one of Britain’s most prominent business figures and often referred to by the media as the “King of Steel”, made his fortune through Luxembourg-based industrial giant ArcelorMittal, which his family controls with a nearly 40 per cent stake.
After taking over his family’s operations in his early twenties, he transformed a modest steel business into a multinational enterprise that expanded through a series of aggressive acquisitions that made him one of the most influential names in the industry.
Today, ArcelorMittal employs more than 125,000 people in more than 60 countries, including the United Kingdom, where it manufactures a range of specialty steel products, from chain-link fences to high-strength wires.
“This was not an income tax [or capital gains] “That was the problem,” an advisor familiar with Mittals’ move was quoted as saying. Sunday Times. “The problem was inheritance tax. Many wealthy expatriates cannot understand why all their assets, wherever they are in the world, should be subject to inheritance tax imposed by the UK Treasury. People in these situations feel they have no choice but to leave and are either upset or angry that they have done so.”
His decision to leave Britain reportedly comes at a politically sensitive time for Labor. Ms Reeves is preparing to outline a budget that could include a series of tax increases aimed at plugging fiscal gaps and boosting the faltering economy.
74-year-old billionaire worth over £15bn Sunday Times Rich ListThe paper claimed he is expected to spend most of his time in Dubai, where he owns a mansion and is currently buying “parts of an intriguing development on nearby Naïa Island”.
Ms Reeves’s overhaul of the non-resident tax regime, once a major draw for internationally mobile wealth, has already unsettled high-income earners, and rumors earlier this year that she was exploring a 20 per cent “exit tax” sparked concerns investors would leave the country before the idea was shelved. Telegram.
It follows a series of high-profile overseas moves, including Revolut founder Nik Storonsky and £2.5bn tech CEO Herman Narula.
The chancellor, who is trying to plug a £20bn gap in the public finances, is expected to announce a new round of tax rises for high earners on Wednesday. Last October’s budget had already upset wealthy families, increasing capital gains tax and reducing benefits for entrepreneurs when selling their businesses.
It also tightened the rules governing how family businesses are passed down between generations.
Critics argue that taken together these measures amount to an attack on the foundations of wealth creation in Britain. Speculation about what will happen next – including talk of a 20 percent tax on those moving abroad – further increased the tense atmosphere in the days leading up to the budget.
The steel magnate, meanwhile, has had deep roots in London since 1995, snapping up some of the capital’s most coveted addresses. His portfolio includes a collection of mansions in the exclusive Kensington Palace Gardens (the legendary “Billionaires’ Row”); These include the 55,000 square meter mansion known as Taj Mittal, which was purchased for £57 million in 2004. The house, covered with marble from the same quarry as the Taj Mahal, has Turkish baths, a ballroom, a swimming pool covered with jewels and rooms for 20 vehicles. According to the information obtained, he has no intention of selling the property.
Earlier this year, it further expanded its real estate footprint, purchasing a $200 million Baroque villa in Dubai’s Emirates Hills, and began acquiring parcels on Naia Island, a luxury development taking shape off the coast of the UAE.
Mr Mittal was a major donor to Labor under Tony Blair and Gordon Brown and had previously contributed more than £5 million to the party.
Sunday Times It was first reported in March that Labor was preparing to leave the UK as it moved to end the non-dom system that allows foreign-domiciled residents to shield their overseas income and capital gains from UK tax.
Independent Reached out to ArcelorMittal for comment.
