As Britain axes a centuries-old tax haven for the elite, the steel baron’s potential departure reflects a growing dilemma—how to tax the rich without driving them away.
What Happens When Billionaires Pack Up?
Lakshmi Mittal, the steel magnate who once bought the world’s most expensive house and turned ArcelorMittal into a global powerhouse, may be packing his bags—and not for a vacation in St. Moritz or business in Dubai. Instead, he could be bidding farewell to Britain after three decades. The reason? A political gamble that aims to abolish a centuries-old tax relief and change the very meaning of financial residency in the UK.
In this unfolding story of wealth, politics, and global mobility, Mittal becomes a symbol of a broader shift: how far can governments go to tax the ultra-rich before they walk away?
Millionaires are leaving the UK in record numbers. More millionaires left the UK than left India, Russia, Taiwan, Vietnam, Nigeria, Brazil and South Africa COMBINED.
— Daniel Priestley (@DanielPriestley) March 21, 2025
The UK's number one export is wealthy people. Why??? Because taxes are insanely high and wealthy people can live… pic.twitter.com/Bi48g2GD3L
The End of a 226-Year-Old Era
The UK’s “non-dom” regime—short for non-domiciled status—was introduced in 1799, allowing wealthy residents with permanent homes abroad to avoid British taxes on foreign income and gains. For decades, it was a magnet for international elites. It also stirred controversy, most recently when Akshata Murty, wife of former Prime Minister Rishi Sunak, was revealed to hold non-dom status.
But in March 2024, then-Chancellor Jeremy Hunt preemptively struck down the regime, and by October, Labour’s Chancellor Rachel Reeves sealed its fate. Effective April 2025, all foreign earnings—regardless of one’s domicile—will fall under UK tax jurisdiction. Offshore trusts to avoid inheritance tax? Also gone.
Reeves declared: “If you make Britain your home, you should pay your tax here.”
Why Mittal Might Leave—and Why It Matters
Mittal, now Executive Chairman of ArcelorMittal, has reportedly told close associates that he’s weighing his options. While no official comment has been made, insiders suggest “there’s a good chance he will cease to be a UK tax resident” this year.
His fortune, estimated at £14.9 billion, and his holdings—including a palace in Kensington and a luxury chalet in Switzerland—highlight his global lifestyle. Dubai, Italy, and Switzerland are believed to be among the destinations under consideration.
If he does leave, it would mark one of the most high-profile exits yet in what appears to be a millionaire migration out of the UK.
Over 10,000 millionaires reportedly left Britain in 2024 alone, a trend expected to accelerate with the 2025 deadline.
A Wealth Exodus or a Fairer Tax Future?
The policy shift has ignited a fierce debate across political and financial circles.
Critics argue that dismantling the non-dom regime will chase away exactly the kind of people who contribute most through income taxes, property investments, and philanthropy. Mittal, for example, has supported various UK causes over the years and was once a prominent donor to the Labour Party under Tony Blair.
“These individuals don’t just live lavishly,” said one wealth advisor. “They employ staff, buy assets, and donate generously. Their exit is not just symbolic—it’s economic.”
Opponents say the UK could lose its status as a magnet for international capital, pushing billionaires to tax havens offering residency perks and wealth-friendly regimes.
But supporters of the reform argue that the previous system institutionalized inequality. It allowed ultra-rich individuals to benefit from British services—security, infrastructure, the rule of law—without contributing fairly to the national treasury.
Rachel Reeves estimates the reform will raise an additional £13 billion over five years, funding public services in a time of widening fiscal deficits.
“It’s about fairness,” Reeves reiterated. “The richest must carry their share of the load.”
Where Are the Wealthy Headed?
Mittal is not alone. Countries like:
- UAE: With zero income tax, Dubai is rapidly becoming a billionaire’s haven.
- Switzerland: Its lump-sum taxation offers certainty and discretion.
- Italy: Flat-tax regimes have lured hundreds of millionaires.
Financial advisors say these destinations offer more than just tax advantages. They provide lifestyle benefits, legal protections, and business opportunities tailored for global elites.
Peter Triggs, a partner at 1291 Group, called the UK’s tax shift “seismic.”
“Residency is now everything,” he said. “Domicile—the idea of your ‘true home’—is being sidelined. For many, that makes the UK far less attractive.”
The Global Game of Residency
What’s unfolding is not just a British story—it’s part of a global rebalancing act. As countries tighten rules on tax avoidance, the wealthy are playing chess across continents.
New Zealand, Portugal, and even Greece have introduced “golden visa” programs. Meanwhile, nations like the UK risk becoming financially unwelcoming, even as they remain culturally attractive.
From Generational Tax Shields to Transitional Clauses
To soften the blow, the UK has announced transitional arrangements:
- New non-doms arriving after April 2025 will pay no tax on foreign income until 2029—only on gains.
- Existing non-doms have a two-year window to restructure their finances.
But for billionaires with legacy trusts, multinationals, and global footprints, these provisions offer little relief.
The emotional calculus is changing too. Once symbols of global prestige, British mansions and Mayfair memberships are now strategic liabilities.
The Real Question: Can You Tax the Ultra-Rich?
Mittal’s case poses a difficult question to lawmakers: can a country enforce financial fairness without losing its biggest contributors?
Policymakers say yes—if reforms are balanced, transparent, and phased. Critics disagree, arguing that unless the global tax system is harmonized, rich individuals will always find better deals elsewhere.
As the world watches where Lakshmi Mittal lands next, one thing is clear: Britain’s experiment in progressive taxation is about to face a billionaire-sized stress test.
FAQ
1. Why is Lakshmi Mittal considering leaving the UK?
Mittal is reportedly responding to the UK government’s decision to abolish the “non-dom” tax regime, which had allowed him to avoid taxes on foreign income.
2. What was the “non-dom” tax status in the UK?
It was a policy allowing UK residents with a permanent home abroad to avoid paying British taxes on foreign income and capital gains.
3. When does the new tax regime come into effect?
The new rules take effect in April 2025.
4. Where might Mittal move if he leaves the UK?
Reports suggest he is considering Dubai, Switzerland, or Italy—locations known for tax incentives.
5. How much is Mittal worth?
His net worth is estimated at around £14.9 billion ($19.3 billion), according to the Sunday Times.
6. What are the critics of the tax reform saying?
Critics argue that abolishing the non-dom status will harm the UK economy by driving away wealthy residents who pay significant taxes and contribute to philanthropy and job creation.
7. What does the government say about the reform?
The government claims it’s a move toward fairness and expects to raise £13 billion over five years through the changes.
8. Is Mittal the only one leaving due to the reform?
No, he joins a growing group of high-net-worth individuals reportedly relocating due to the changes. Over 10,000 millionaires left the UK in 2024 alone.
