Lakshmi Mittal quits Britain for Switzerland and Dubai over inheritance tax concerns

Highlights

• Lakshmi Mittal, worth over £15 bn, has moved his tax residence from UK to Switzerland with plans to spend most time in Dubai.
• Inheritance tax concerns, not income tax, drove the decision of the "King of Steel" to leave after 30 years in Britain.
• The departure marks another high-profile exit as chancellor Rachel Reeves prepares major tax rises in the coming Budget.

The Indian-born billionaire built his fortune through ArcelorMittal, the world's second-largest steelmaker, in which he and his family hold nearly 40 per cent ownership. Since arriving in London in 1995, Mittal became a prominent figure in British business, acquiring expensive properties including a £57 m mansion on Kensington Palace Gardens known as the "Taj Mittal."

An adviser familiar with Mittal's family plans told The Sunday Times that, inheritance tax was the decisive factor in the decision. "It wasn't the tax on income or capital gains that was the issue, the issue was inheritance tax."

"Many wealthy people from overseas cannot understand why all of their assets, wherever they are in the world, should be subject to inheritance tax imposed by the UK Treasury".

UK inheritance tax reaches 40 per cent on estates above certain thresholds, whereas Dubai imposes no inheritance tax and Switzerland offers exemptions.

The decision follows Labour's abolition of the non-domiciled tax status, which previously allowed foreign residents to shield their global assets from UK inheritance obligations.

Mittal's exit comes as chancellor Rachel Reeves prepares a fresh tax raising budget aimed at balancing the government finances. His departure represents an embarrassment for the government and follows similar high-profile relocations by technology entrepreneurs seeking more favourable tax climates.

Despite leaving, Mittal reportedly has no plans to sell his estate, according to The Sunday Times. He remains a former Labour donor, having contributed over £5 m to the party under Tony Blair and Gordon Brown, and continues to hold a stake in London football club Queens Park Rangers.