Steel Magnate Lakshmi Mittal upset with UK tax restriction, my move out: Report

Mumbai: Steel magnate Lakshmi Mittal, a long-time UK resident, is considering leaving the country in response to the impending abolition of the so-called ‘non-dom’ tax regime, according to a Financial Times (FT) report.

Mittal, whose family fortune is estimated at £14.9 billion ( ₹1.65 trillion), is reportedly exploring his options following the Labour government's decision to end the tax arrangement that allowed ‘non-domiciled’ UK residents to avoid paying taxes in the UK on their foreign income and gains.

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Mittal, who moved to the UK in 1995 and built his steel empire from the ground up, has informed associates of his potential departure, FT reported citing an unnamed close friend of Mittal’s. The billionaire is expected to make a final decision later this year.

This places Mittal among a growing number of wealthy foreign residents leaving the UK in response to the tax reforms. The FT said the United Arab Emirates, Italy and Switzerland are emerging as popular destinations for those seeking tax-friendly jurisdictions.

The 226-year-old non-dom regime, which allowed UK residents to declare their domicile overseas and avoid UK tax on foreign income, was abolished by the Conservative government in March 2024, preempting a key Labour policy. Labour's subsequent confirmation and expansion of the abolition, including ending the use of offshore trusts to avoid inheritance tax, have further accelerated the departure of wealthy residents, the FT reports.

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UK tax rules impose restrictions on the amount of time non-residents can spend in the country, typically limiting visits to 90 days a year. The FT's report highlights the significant impact of the tax reform on the UK's wealthy foreign residents and the potential economic consequences of their departure.

"Non-dom" describes a UK resident whose permanent home - or domicile (for tax purposes only) – is outside the UK. A non-dom only pays UK tax on the money they earn in the UK.

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Mittal's extensive property portfolio in the UK includes a mansion in Kensington Palace Gardens in London, which was the world’s most expensive home when he bought for £67 million in 2004.

A spokesperson for ArcelorMittal, the steel company that Mittal heads, declined to comment.