What is Super Rich Tax?: Indian-origin billionaire Lakshmi Niwas Mittal, one of the UK’s wealthiest people, is reportedly preparing to leave the country. The upcoming super-rich tax is being cited as a key reason behind Mittal’s decision. The Rajasthan-born steel tycoon, founder of ArcelorMittal, may shift to Dubai, PTI reported, citing The Sunday Times. Mittal, who currently resides in Switzerland for tax purposes, is reportedly planning to leave the United Kingdom after three decades.
What Is The UK’s Super Rich tax?
According to reports, Britain’s super-rich tax is a group of taxes imposed by the Prime Minister Keir Starmer-led government and Chancellor Rachel Reeves on the country’s wealthy. This tax is levied on those with property worth more than approximately $1 billion. It was introduced in the 2024 budget, and the upcoming budget may further tighten the tax norms. The purpose of the super-rich tax is to encourage investment and address public finance shortages.
There Is Not One But Many Tax Groups
Super Rich Tax is a group of taxes under various categories that are pushing the migration of foreign entrepreneurs and businessmen living in Britain. These taxes include inheritance tax (IHT), capital gains tax, and wealth tax. Earlier, the property of billionaires and the wealthy was tax-free. However, due to the imposition of heavy taxes, businessmen are relocating to other countries.
Which Taxes Are Included In The Super Rich Tax?
Non-dom status tax is paid by entrepreneurs on income earned outside the UK. Previously, income from abroad was exempt from tax, but this exemption was abolished in April 2025, and a tax of up to 45 percent was imposed on wealthy individuals living in the UK for more than four years.
Inheritance tax (IHT) is a 40% tax levied on property after the death of a businessman, but now trusts and foreign assets will also be covered under this tax, which will further increase the financial burden.
Capital gains tax is a 25 percent tax on profits from selling property or shares, which is rumored to be increased from 20 to 28 percent.
Why Is Mittal Leaving UK?
With an estimated net worth of £15.4 billion (around Rs 1.90 lakh crore), Mittal ranked as UK’s eighth-richest person in this year’s Sunday Times Rich List. He has become the latest billionaire to consider relocating ahead of Chancellor Rachel Reeves’ upcoming budget. The UK Labour government’s inheritance tax is cited as the main reason behind Mittal’s decision. Notably, many wealthy people are leaving the UK after the government ended the “non-dom” status in April, which previously let them pay tax only on UK income and not on money earned abroad. Chancellor Reeves is expected to announce more tax increases in her next budget.
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