"There is a good chance he will cease to be a UK tax resident."
Billionaire former Labour donor Lakshmi Mittal is threatening to quit the UK in response to Chancellor Rachel Reeves’ crackdown on ‘non-doms’.
The steel tycoon has lived in Britain for three decades and is reportedly preparing to leave due to the Government’s tax changes.
Mr Mittal and his family are estimated to have a fortune of £14.9 billion, ranking him seventh on a UK rich list in 2024.
The Indian-born businessman owns property on London’s exclusive Kensington Palace Gardens, known as ‘billionaire’s row’.
He purchased what was then the world’s most expensive home for £67 million in 2004.
Since winning power in last July’s general election, Labour has moved to abolish the non-dom tax regime.
Non-doms are UK residents who consider their permanent home, or domicile, to be outside the UK. This status allowed them to pay UK tax only on money earned in Britain, avoiding tax on foreign income.
Critics blame Ms Reeves’ tax-hiking Budget in October for pushing wealthy entrepreneurs out of Britain. Her plans to abolish the non-dom regime have sparked concerns over capital flight.
Figures from global analytics firm New World Wealth showed that 10,800 liquid millionaires, those with more than $1 million in liquid assets, left the UK in 2024. Only China lost more millionaires that year.
In 2023, 4,200 millionaires left the UK. Between 2017 and 2023, Britain saw 16,500 millionaires leave, affected by Brexit and the Covid pandemic.
Mr Mittal has reportedly told associates his likely departure is due to Labour’s tax policy.
A friend told 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.”
Lakshmi Mittal has reportedly been acquiring property in Dubai. He also owns a ski chalet in Switzerland and homes in Europe, the US, and Asia.
He was a major donor to Labour under former prime minister Sir Tony Blair.
Downing Street defended the Government’s tax changes.
A No10 spokesman said: “Our tax system is fair and progressive and keeps the UK an attractive place to live while supporting the public investment needed to drive growth.
“It’s worth noting the UK’s main capital gains tax rate is lower than any other G7 European country, including Italy, France and Germany.
“And our new residence-based regime is simpler and more attractive to new arrivals than the non-dom regime it replaces.”
Loading ...