Lakshmi Mittal, Britain’s seventh-richest individual, is considering leaving the UK in response to the government's move to end the "non-dom" tax regime.
The steel magnate, who has called Britain home for three decades, is reportedly exploring his options and may cease to be a UK tax resident by the end of the year, according to sources close to him. Mittal, whose family fortune was estimated at £14.9 billion last year, owns luxury properties across Europe, the US, and Asia, including a lavish chalet in St Moritz, Switzerland.
Having built the world’s second-largest steel empire, he moved to the UK in 1995 and stepped down as CEO of ArcelorMittal four years ago, handing leadership to his son, Aditya Mittal. A former donor to New Labour, Mittal later supported Boris Johnson’s 2019 election campaign. He now joins a growing list of billionaires reconsidering their UK residency due to the tightening tax policies.
A non-dom is a UK resident whose permanent home, or domicile, for tax purposes is outside the UK. This status is unrelated to nationality, citizenship, or residency—though these factors can influence it. Under the current system, non-doms only pay UK tax on income earned within the country, while foreign income remains untaxed unless brought into the UK. This has allowed wealthy individuals to legally reduce tax obligations by designating a lower-tax country as their domicile.
With the non-dom tax regime now being phased out, new rules will take effect from April 2025. Those moving to the UK from that date will enjoy four years of tax exemption on foreign earnings. However, after this period, they will be subject to the same tax rules as UK residents.
For existing non-doms, a two-year transition period has been introduced, encouraging them to integrate their offshore wealth into the UK tax system. Despite this adjustment, many high-net-worth individuals see the reforms as a turning point, accelerating their departure in search of more favourable tax climates.
The movement of millionaires to more favourable tax jurisdictions has fluctuated since the financial crash, but the UK is now poised to experience the world’s largest proportionate loss of wealthy residents by the end of this parliament. While non-domiciled residents were already relocating gradually, many of those who remained are now making swift plans to leave.
The Labour Party’s tax reforms, including the abolition of the non-dom tax regime, have caused a significant exodus of millionaires from the UK. In 2024, a net 10,800 millionaires left the country—a 157% increase compared to 2023 - placing the UK as the second highest global loser of wealthy individuals after China.
Foreign Investors for Britain (FIFB) has been actively lobbying No 10 and the Treasury to adopt the TTR as a pragmatic alternative to abolishing non-dom status and have met with No 10 and Treasury on a number of occasions and are maintaining this dialogue.
Leslie MacLeod-Miller, CEO of Foreign Investors for Britain said, “Chancellor Rachel Reeves must steer Britain’s economy away from the impending iceberg of lost growth. As global competition intensifies, Britain is driving wealth and opportunity into the welcoming arms of nations that understand the value of foreign investors… With other nations innovating to attract foreign capital, Britain risks becoming an economic outlier.
“When the Chancellor said she would drive growth, we did not believe that to mean drive growth away from Britain. When she said she would put money in people's pockets, we were not told that she would be taking out of Britain's pockets and filling the pockets of the USA, Italy, Switzerland and Dubai.”
Further demanding action, he said, “This is a defining moment for Britain. Every taxpayer should demand action to keep wealth within our borders and compete effectively on the global stage. Failure to act decisively will leave Britain on the sidelines as other nations reap the rewards of forward-thinking policies.”
Changes to inheritance tax
The UK government is introducing major changes to Inheritance Tax (IHT) and tax reliefs, aiming to modernise the system and address fiscal challenges. Alongside legislative updates, a push toward digitalisation will change how IHT is managed and paid.
Currently, non-doms are only liable for IHT on UK-based assets, with foreign assets exempt unless they have lived in the UK for 15 of the past 20 years. From April 6, 2025, this will change: IHT will apply to worldwide assets if a person has been a UK resident for 10 of the last 20 years. Those who leave the UK will still be liable for IHT on worldwide assets for 10 years, preventing tax avoidance through last-minute relocation. The government expects these changes to generate £150 million annually by 2030.
Further changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) will take effect in April 2026, limiting tax relief for family-owned businesses and farms. A study by Family Business UK and CBI-Economics found that since the Budget announcement, 23% of family businesses and 17% of farms have already cut jobs or paused hiring, while more than half have halted or cancelled investment plans. The research estimates these changes will result in 208,000 job losses and a £14.9 billion reduction in economic output, leading to a net fiscal loss of £1.9 billion for the government by the end of Parliament.
Neil Davy, CEO of Family Business UK said, “Against a backdrop of huge uncertainty in global geopolitics and UK economic growth, these latest data show unequivocally the damage that is already being done to Britain’s family-owned businesses and farms, and the wider economy.
“Across every sector, decisions are being taken now to cut jobs, reduce investment and sell assets threatening the future of thousands of businesses, farms and the sustainability and security of UK farming and food production. Ultimately, it will be the working people, and communities right across the country, who depend on family-owned businesses and farms who’ll pay the price.
“But it’s not too late for these policy decisions to be reviewed or reversed. For months we have called on government to consult with us and our members in a meaningful way to find a workable solution that mitigates damaging impacts of the changes to BPR and APR on family firms whilst simultaneously raising additional tax revenue for the Treasury and re-incentivising family businesses and farms to invest, recruit and create long-term growth. We would still welcome that opportunity.”
