Billionaire Steel Tycoon Relocates to Dubai as Labour’s New Tax Policies Loom
Indian-origin steel magnate Lakshmi Mittal, the founder and executive chairman of ArcelorMittal, has reportedly left the United Kingdom ahead of the government’s proposed tax hikes on the wealthy. According to The Hindu (November 23, 2025), the billionaire — long regarded as one of Britain’s richest residents — has decided to relocate primarily to Dubai, citing concerns over inheritance and exit taxes proposed by the Labour-led government.
Why Lakshmi Mittal Left the U.K.
Lakshmi Mittal, whose net worth is estimated at £15.4 billion according to the Sunday Times Rich List 2025, was ranked as the eighth richest person in the U.K.. However, he has now officially shifted his tax residency to Switzerland and will reportedly spend most of his time in Dubai, where he already owns a mansion and has invested in a new development on Naïa Island in the UAE.
Sources close to Mittal told The Sunday Times that his decision was prompted by the upcoming Budget announcement by Chancellor Rachel Reeves on November 26, which is expected to include higher capital gains taxes, reduced business relief, and stricter inheritance tax regulations.
The Tax That Sparked an Exodus
One adviser familiar with the situation stated that Mittal’s departure was driven mainly by concerns over the inheritance tax, rather than income or capital gains.
“It wasn’t the income or capital gains tax that worried him — it was inheritance tax. Many wealthy individuals don’t understand why global assets should be subject to U.K. inheritance rules,” said the adviser.
Under U.K. law, inheritance tax can reach up to 40%, whereas Dubai and Switzerland impose no such tax, making them more attractive for ultra-high-net-worth individuals.
A Growing Trend Among Billionaires
Lakshmi Mittal’s exit follows a growing pattern among Britain’s wealthy elite. Recently, several high-profile entrepreneurs — including Herman Narula, the India-born founder of AI firm Improbable, and Nik Storonsky, co-founder of Revolut — have also chosen to move abroad amid speculation about a new “exit tax.”
Narula, who has lived in England since the age of two, told The Sunday Times that the proposed policy had made the U.K. unpredictable for entrepreneurs:
“It’s insane — they’re talking about taxing you even if you leave without selling shares. Even if they scrap it now, who’s to say they won’t bring it back later?”
Storonsky’s move to the UAE reportedly saved him an estimated £3 billion in potential capital gains tax liabilities tied to his stake in Revolut.
U.K. Policy Uncertainty Raises Investor Concerns
Economists warn that these departures signal deeper issues with Britain’s investment climate. The flip-flopping around fiscal policy, particularly ahead of the upcoming Autumn Statement, has raised concerns about London’s status as a global business hub.
The proposed exit tax, meant to discourage the wealthy from relocating, has been controversial — and though reports suggest the government may scrap it, uncertainty remains.
“Repeated changes and policy leaks undermine confidence. Businesses need predictability, not panic,” said a senior financial analyst based in London.
Mittal’s Legacy and Future Plans
At 75, Lakshmi Mittal remains a towering figure in global industry. As the founder of ArcelorMittal, the world’s largest steelmaker, he transformed a modest family business in India into a global industrial powerhouse with operations spanning over 60 countries.
Mittal has also played a major role in philanthropy, particularly in education and sports — including funding the Mittal Champions Trust, which supports Indian athletes. His move from the U.K. does not mark a withdrawal from global business but reflects a strategic relocation amid shifting fiscal environments.
Industry insiders believe Mittal will maintain significant business interests in Europe, but base more of his personal operations in the Middle East, which is emerging as a major financial hub for billionaires seeking stability and low taxation.
Conclusion: The U.K. Faces a “Billionaire Brain Drain”
Lakshmi Mittal’s decision to leave the U.K. underscores a broader trend of wealth migration driven by fiscal uncertainty and aggressive tax policy. As the Labour government seeks to fill a £20 billion budget deficit, the exodus of high-net-worth individuals like Mittal raises questions about the long-term competitiveness of Britain’s economy.
His departure sends a clear signal: if the U.K. continues to impose unpredictable wealth policies, it risks losing its most influential investors to more tax-friendly destinations such as Dubai and Switzerland.For more updates on global business and leadership news, visit StartupNews.FYI.
