Lakshmi Mittal, the Indian steel tycoon and one of Britain’s wealthiest individuals, is reportedly considering leaving the UK following the government’s decision to abolish the “non-dom” tax regime. This regime previously allowed UK residents who declared their permanent home as being overseas to avoid paying British tax on foreign income and gains. Mittal, who has resided in the UK for three decades and has an estimated fortune of £14.9 billion, is exploring his options and may cease to be a UK tax resident.
The abolition of the non-dom status has prompted several wealthy individuals to consider relocating to countries with more favorable tax regimes, such as the United Arab Emirates, Italy, and Switzerland. Critics argue that this exodus of high earners could negatively impact the UK’s economy, as these individuals contribute significantly through taxes, consumption, and philanthropy.
The non-domiciled status in the UK allowed individuals who were tax residents but had their permanent home, or domicile, outside the country to avoid paying UK tax on foreign income and capital gains unless they brought the money into the UK. To qualify, individuals had to prove their domicile was abroad, typically the country their father considered his permanent home. After residing in the UK for a certain period, non-doms were subject to annual charges to maintain this status.
By BHARAT GLOBAL TIME
