Steel King Lakshmi Mittal may leave Britain, why did the veteran industrialist take such a big decision?

News Topical, Digital Desk : The announcement of a hefty tax on the country's wealthiest individuals in Britain's upcoming budget has prompted many industrialists to consider leaving the country. The country's super-rich are making Dubai their new home.

Indian-born steel magnate Lakshmi Mittal may soon join these wealthy elite. Mittal, who already lives in Switzerland due to high taxes, may now spend more time in Dubai.

Many businessmen have left the UK

Another Indian-origin businessman, Harman Narula, has already arrived in Dubai. Mittal, founder of ArcelorMittal Steelworks, has a net worth of 15.4 billion pounds (18,000 crore rupees), according to the Sunday Times Rich List. He is Britain's eighth-richest person.

Mittal already owns a mansion in Dubai and has now purchased land on nearby Naya Island in the UAE. Chancellor Rachel Reeves is set to announce her much-anticipated budget on taxation on Wednesday. Reeves is attempting to address a 20 billion pound deficit in the country.

Mittal leaving UK due to succession issue?

According to an adviser to Mittal, the problem wasn't income tax or capital gains tax. The issue was inheritance tax. Many wealthy foreigners don't understand why Britain should tax all their assets around the world. The idea for an exit tax is believed to have been sparked by Nik Storonsky, co-founder of London-based financial services group Revolut, deciding to settle in the United Arab Emirates.

Harman Narula says, "Even if I don't sell my UK stake, I'll still have to pay exit tax upon leaving the country. This is insane. Even if the government repeals the exit tax, I won't change my mind. There's no guarantee tomorrow. If they change their minds, I'll be left with no choice."

What is the tax math in Britain?

The budget is believed to include a 20 percent exit tax on those leaving the UK. In Britain, inheritance tax is up to 40 percent, while Dubai and Switzerland do not impose such taxes.

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