Lakshmi Mittal May Exit UK as Non-Dom Tax Regime Ends

A new report states that steel tycoon Lakshmi Mittal is thinking of moving away from the UK after the government introduced some adjustments to the country’s ‘non-dom’ tax regime. Mittal, executive chairman at ArcelorMittal and one of Britain’s wealthiest individuals, has an estimated net value of $19.30 billion.

According to the Financial Times, Mittal has reportedly told close associates that he is evaluating his options and may decide to leave the UK. The decision follows the UK government’s move to abolish tax exemptions for foreign income and gains.

“He is weighing his options and will make a final decision within the course of this year,” a friend of Mittal informed the newspaper. “There is a strong possibility that he will no longer be a UK tax resident.”

Reports indicate that Mittal is mulling moving to places like Dubai, Switzerland, or Italy—places famous for providing tax breaks to ultra-high-net-worth individuals (Business Standard).

UK’s Non-Dom Tax Regime

The UK’s “non-dom” tax status is for residents who have a permanent home overseas. This system, spanning 226 years, permits people to pay tax only on their British-earned income. Foreign earnings are exempt unless they are brought over to a UK-based account (BBC).

This status has been useful for high-net-worth individuals, allowing them to minimize their tax bills by choosing a low-tax jurisdiction as their home. One high-profile example of a non-dom individual was Akshata Murty, the wife of former UK Prime Minister Rishi Sunak. Following criticism of her tax status in the public eye, she said she would begin paying UK taxes on her worldwide income.

The proposal to scrap the non-dom status was first mooted in March 2024 by then-Conservative Chancellor Jeremy Hunt. It was further developed in the October 2024 Budget by his Labour successor finance minister Rachel Reeves, closing down non-dom tax loopholes and looking to bring in $16.47 billion in revenue over five years.

“Having said that, I have always believed that if you choose to make Britain your home, you should pay your tax here,” Reeves told parliament while delivering the budget.

Switch to a Residency-Based Tax System

Under the new regime, non-doms will be taxed on their residency status and not their domicile. Under the new rules, new UK non-doms will not pay tax on foreign earnings until 2029, but they will pay tax on gains. Long-established non-doms will get a two-year window before they are taxed comprehensively on worldwide income.

As of 2022-2023, there were around 74,000 people in non-dom status in the UK (BBC). Wealth advisors and private banks advise that the changes in taxation can push many rich residents out of the nation. According to Self-Employed.com, more than 10,000 millionaires moved out of the UK in 2024 because of increased taxes.

Those emigrating abroad under the new rules are still allowed to visit the UK for about 90 days annually and work for up to 30 days, according to Financial Times. If Mittal goes through with his move, he will be part of an increasing pool of ultra-high-net-worth individuals going abroad.

Expert Reactions

The experts view this as a landmark change in the UK tax regime. Peter Triggs, a partner at 1291 Group and an expert in international wealth planning, referred to the change as “monumental.”

“It makes the UK explicitly a pure residency-based system of taxation, as indeed most other places are, but for many high net worth individuals with a UK nexus and their advisors, it’s seismic change,” he said to Hubbis.

These have been arriving in waves since the 1980s,” said Triggs. “What’s unique this time is domicile, the idea of your ‘proper home,’ has been completely brushed aside. Now it’s residence that’s determining the tax rates.”

As the new tax system becomes effective on April 2025, more of the high net worth population from the UK could be heading out, and the ultimate call by Mittal will be eyed keenly.