The steel tycoon, Lakshmi Mittal, he’s done with the UK. He was a fixture on that country’s richest lists—eighth richest man, $15.4 billion worth of steel money. That happened. And then he packed his bags for warmer, cheaper tax climates.
He was already a tax resident in Switzerland, the thing is. Now, the plan is to spend most of his time in Dubai. He’s already got a mansion there. And he just bought “tracts of an intriguing development” on that new spot, Naïa Island, in the UAE.
The Problem: Rachel Reeves’ Looming Tax Hammer
The timing is the real kicker here. This news drops just before Chancellor Rachel Reeves delivers her Budget on Wednesday, November 26th. She’s got a huge £20 billion hole in the UK’s finances. She needs cash.
The last Budget already hit the wealthy: increased Capital Gains Tax, reduced relief for entrepreneurs selling up. That was phase one.
Now, the rumors of further taxes—a potential 20% exit tax on those who leave, new levies on wealthy families. This speculation caused the unease.
The Real Pain Point: Inheritance Tax
It wasn’t just the income or capital gains tax. Let’s be real. It was the death tax.
An adviser close to the Mittals put it bluntly: wealthy people from overseas simply “cannot understand” why all of their global assets should be subject to the UK Treasury’s inheritance tax, which can hit 40%. Switzerland and Dubai? They levy zero inheritance tax.
The UK said, “Pay us when you die, on everything, globally.” And then the wealthy said, “We’re leaving first.” That followed.
The Exodus is Real
Mittal isn’t alone. It’s a trend.
Herman Narula, the India-born tech entrepreneur and investor, he’s planning his shift to Dubai, too. The guy grew up in England since age two.
He said the proposed exit tax—even though the government allegedly scrapped the idea—was “completely insane.” The biggest fear? Uncertainty. Narula questioned, “The thing is, they’re clearly thinking about it, right? What if they change their mind? What stops them doing it in the next Budget?”
This entire series of policy flip-flops in the Treasury Department—the constant rumors and leaks ahead of the Budget—it has completely destroyed confidence. It severely undermined the government’s promise of the UK being a stable place to invest. The uncertainty alone is driving the wealth out. And it’s an ongoing flight.
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