London, England, UK: Indian-origin steel magnate Lakshmi Mittal has reportedly relocated from the United Kingdom to Switzerland, with concerns about the UK’s inheritance tax system influencing his decision, according to a report published by the Sunday Times.
The publication suggests that the Labour government’s decision to eliminate the non-dom tax status earlier this year has prompted many wealthy foreign residents to reassess whether they should continue living in Britain. The non-dom regime previously allowed affluent individuals to pay UK tax only on income earned within the country, excluding overseas earnings.
One of Mittal’s advisers, quoted in the report, said that many high-net-worth individuals are puzzled about why the UK expects inheritance tax to apply to all of their global assets. The adviser explained that this has left many feeling compelled to move out of the country, noting that they are often “sad or frustrated” about having to take such a step.
Shift to Switzerland and Time in Dubai
According to the report, Mittal has now settled in Switzerland and is expected to divide his time between extended stays in Dubai. He already owns a luxurious residence in Dubai, the most populated city in the UAE, and has reportedly invested in properties within an upcoming development on Naia Island.
Dubai does not levy inheritance tax, and Switzerland generally exempts heirs from paying heavy taxes on inherited wealth, making both locations attractive for wealthy families.
Mittal reportedly began evaluating a move earlier this year, around the time speculation arose that the Chancellor might proceed with major tax reforms.
The report adds that Mittal, founder of the ArcelorMittal steel empire and ranked eighth on this year’s Sunday Times Rich List with an estimated fortune of 15.44 billion, is among the most prominent ultra-rich individuals to leave the UK recently. Others cited include Norwegian shipping magnate John Fredriksen, who has shifted to Dubai, and German investor Christian Angermayer, who has moved to Switzerland.
