A billionaire former Labour donor is threatening to quit the UK in response to Chancellor Rachel Reeves’ crackdown on ‘non doms’.
Laskhmi Mittal, a steel tycoon who has lived in Britain for three decades, is reportedly preparing to leave Britain because of the Government’s tax changes.
Mr Mittal and his family are estimated to have a fortune of £14.9billion, which put him seventh on a UK rich list last year.
The Indian-born businessman is also the owner of property on London’s exclusive Kensington Palace Gardens, which has been dubbed ‘billionaire’s row’.
He bought what was then the world’s most expensive home for £67million in 2004.
Since winning power at last July’s general election, Labour has acted to abolish the non-dom tax regime.
Those known as ‘non doms’ are people who are UK residents but who consider their permanent home, or domicile, to be outside the UK.
By holding ‘non dom’ tax status, they only paid UK tax on money earned in Britain, and did not have to pay UK tax on money made elsewhere in the world.
Critics have blamed Ms Reeves’ tax-hiking Budget in October – including her plans to abolish the ‘non dom’ regime – for wealthy entrepreneurs abandoning Britain.
Figures from New World Wealth, a global analytics firm, showed 10,800 liquid millionaires – who hold more than $1million in liquid assets – left the UK in 2024.
According to their research, only China lost more millionaires than the UK in 2024.
In comparison with the net 10,800 millionaires that Britain lost last year, the figure was 4,200 in 2023, they found.
The UK also lost 16,500 millionaires to migration from 2017 to 2023, which included Brexit and the Covid pandemic, the research added.
According to the Financial Times, Mr Mittal has told associates his likely departure is in response to the Labour’s decision to end the ‘non dom’ regime.
‘He is exploring his options and will take a final decision over the course of this year,’ a friend of Mr Mittal told the newspaper.
‘There is a good chance he will cease to be a UK tax resident.’
Mr Mittal is said to have been buying up property in Dubai, while he also owns a vast ski chalet in Switzerland and residences elsewhere in Europe, as well as the US and Asia.
He was a significant donor to Labour under former prime minister Sir Tony Blair.
Downing Street today defended the Government’s changes to the tax system.
A No10 spokesman said: ‘Our tax system is fair and progressive and keeps the UK an attractive place to live while supporting the public investment needed to drive growth.
‘It’s worth noting, the UK’s main capital gains tax rate is lower than any other G7 European country, including Italy, France and Germany.
‘And our new residence-based regime is simpler and more attractive new arrivals than the non dom regime it replaces.’