Why billionaire Lakshmi Mittal is leaving UK after 30 years
What's the story
Lakshmi Mittal, one of the world's richest men, is leaving the UK after nearly three decades. The Indian-origin steel tycoon, who has long been a fixture on Britain's billionaire lists, is said to be relocating due to impending tax changes by the Labour government. These changes are expected to have a major impact on high-net-worth individuals like him.
Business profile
Mittal's wealth and business empire
The "King of Steel," as Mittal is known, has amassed his fortune through ArcelorMittal, the world's second-largest steelmaker. His family still owns nearly 40% of the company. According to The Sunday Times, Mittal's net worth is around £15.4 billion, making him the eighth richest person in the UK. He has also been featured on Forbes's rich list with a net worth of $21.4 billion.
Tax worries
Inheritance tax concerns prompt Mittal's relocation
Advisers quoted by The Sunday Times, said inheritance tax is Mittal's biggest concern. Many wealthy foreign residents are baffled as to why all their global assets should be subject to UK inheritance tax, prompting them to consider relocation. Under current rules, inheritance tax can apply on worldwide assets depending on residency and domicile status.
Philanthropy
Mittal's properties and philanthropic contributions
Mittal moved to London in 1995 and became one of Britain's most high-profile Indian businessmen. His properties on Kensington Palace Gardens are some of the country's most expensive homes. His main mansion, "Taj Mittal," was bought for £57 million in 2004. It features a ballroom, a jewelry-covered swimming pool, and Turkish baths, among other luxuries. Despite his plans to relocate, Mittal doesn't plan on selling this property.
Global footprint
Mittal's global ventures and UK tax concerns
Mittal already owns a mansion in Dubai and has reportedly purchased land on Naa Island in the UAE. Dubai and Switzerland are popular among wealthy individuals for not having an inheritance tax, making them attractive destinations for global families. His relocation comes as several entrepreneurs and investors leave the UK over concerns about policy stability and potential future tax changes.