Wealthy British Indians, including Lakshmi Mittal, and other high-net-worth entrepreneurs are leaving the UK, citing rising taxes and policy uncertainty under the Labour government. Tech entrepreneur Herman Narula plans to move to Dubai amid buzz over taxes on the super-rich.
A growing number of wealthy British Indians are leaving the UK, driven by rising taxes, uncertain policy direction, declining public services under the new Labour government, and fears of additional future tax hikes. India-born technology entrepreneur Herman Narula has said he is preparing to relocate from Britain to Dubai ahead of a potential tax announcement by Chancellor Rachel Reeves. The 37-year-old businessman plans to move to the UAE before the expected introduction of a UK “exit tax” targeting high-net-worth individuals.
Even Lakshmi N Mittal is planning to leave the UK. Mittal, one of the world’s richest businessmen, has been in the UK for nearly three decades. Known as the ‘King of Steel’, Mittal, ranks eighth on the UK’s rich list and is planning to leave after the Labour government signalled a tougher tax environment for high-net-worth individuals, according to The Sunday Times.
Mittal already owns a mansion in Dubai and has reportedly bought land on Naa Island in the United Arab Emirates (UAE). Mittal has a net worth of $21.4 billion.
Herman Narula, the chief executive of the £2.5-bn tech company Improbable, told the Daily Telegraph that speculation about new tax measures, including a potential exit tax, had created instability.
He said he was preparing to immigrate to the UAE over reports that Reeves intended to unleash a so-called settling-up charge on entrepreneurs, The Telegraph reported.
UK’S PLANNED EXIT TAX IRRESPONSIBLE: HERMAN NARULA
Herman Narula, who is Britain’s richest self-made entrepreneur aged under 40, also called introducing an exit tax “irresponsible” and warned it threatened to drive out entrepreneurs ahead of the Budget.
“It has forced a lot of people to leave,” he said.
There has been speculation that Chancellor Reeves is planning to introduce a capital gains tax, which would apply when a wealthy person leaves the UK to live in a different country, Abu-Dhabi-based news outlet, The National, reported. The aim is to prevent wealthy individuals from moving money abroad to dodge UK taxes.
“It’s less about the exit tax and more about not knowing what the next five budgets are going to hold and what random things are going to be placed inside them. I think in that context, I would rather pursue opportunities elsewhere until the situation improves,” Narula told The National.
WEALTHY ENTREPRENEURS FLEEING UK FOR DUBAI
Narula has joined a growing list of wealthy entrepreneurs to leave Britain, which includes former England footballer Rio Ferdinand and billionaire Nik Storonsky, co-founder of Revolut, who have both left London for Dubai. Both of them have cited a similar reason for leaving the UK.
Other prominent leavers include Shravin Mittal, the Indian businessman; Nassef Sawiris, the Egyptian tycoon; John Fredriksen, the Norwegian-Cypriot shipping magnate; and Richard Gnodde, the South African-born vice president of Goldman Sachs, according to the report in The National.
Bharti Airtel founder Sunil Mittal’s son, Shravin Mittal, who is the top shareholder in UK telecommunications giant BT Group Plc, currently lists the United Arab Emirates as his residence after previously listing the UK, Bloomberg reported, citing registry filings.
A record 691 millionaires left the UK in April after tax reforms took effect, a 79 per cent increase on last year, with Dubai, Italy, and Greece popular destinations, The National reported.
BRITISH-INDIAN TYCOONS WRITE TO CHANCELLOR RACHEL REEVES
British-Indian billionaire Surinder Arora, chairman of the Arora Group, and Ajaz Ahmed, founder of AKQA and Studio One, were among more than a dozen wealthy business owners who jointly signed an open letter to Chancellor Rachel Reeves.
The letter says: “There is alarming evidence that some entrepreneurs are leaving the UK. Furthermore, last year’s Budget measures, including changes to capital gains tax, entrepreneur’s relief, and employer national insurance, have increased costs for many entrepreneurs.”
“As the govt prepares for this year’s Budget, it must carefully consider the cumulative impact of these policies. We need to empower the energy and dynamism of entrepreneurs, not stifle or constrain them,” the letter added.
INDIAN-ORIGIN ENTREPRENEURS REASSESSING LIFE IN UK AMID TAX AND GROWTH CONCERNS
Ganapati Bhat, an IT consultant originally from Bengaluru, who came to work in the UK in 2007 on a highly skilled migrant programme, is among those considering returning to India, according to a report in The Times of India.
“When I came here there were good prospects and opportunities. Now I am not seeing any return on the high taxes I pay. I am not seeing improvements to the NHS, economic growth or investment in infrastructure,” Bhat told TOI.
He said several of his PIO (Person of Indian Origin) friends, who had lived in the UK for years like him, had already returned to India.
