Chartered accountant Sarthak Ahuja has recently highlights the dramatic flight of wealthy individuals—including industrialist Lakshmi Mittal from the UK. The driving force? Sweeping changes to Britain’s tax policies have abruptly ended a century-old regime that once made the UK a haven for global millionaires and billionaires.
Britain’s “Non-Dom” Advantage: Now Gone
For decades, the UK’s Non-Domiciled (Non-Dom) Regime was a magnet for global wealth. This special status allowed foreign-born UK residents to shield their foreign-earned income and overseas assets from taxes—effectively letting them enjoy the lifestyle and stability of London, without its usual tax burden. In practice, billionaires and international business leaders flocked to Britain to enjoy this fiscal privilege.
The Trio of New Tax Changes
According to CA Sarthak Ahuja’s summary, the attraction of the UK for the world’s wealthy has now collapsed because of three major shifts:
- Higher Capital Gains Tax:
Last October, it hiked its capital gains tax rate from 20% to 24%—a notable jump for investors and entrepreneurs with appreciated assets. - Abolition of Non-Dom Status:
As of April 6, 2025, long-term UK residents can no longer shield overseas earnings from the UK tax net. All global income (and, crucially, worldwide assets on death) are now exposed to UK taxes—including a 40% inheritance tax. - Proposed 20% Exit Tax:
The most controversial: Anyone leaving the UK may soon face a 20% “exit tax”—even on the unrealized capital gains on their assets as of departure. This means you could owe a tax just for moving, without even selling your assets.
The Fallout: A Mass Exodus
- Famous names: ArcelorMittal chairman Lakshmi Mittal—alongside other high-profile ultra-HNIs and entrepreneurs—has openly relocated to the UAE and elsewhere.
- Numbers: Over 16,000 millionaires are expected to leave the UK in 2025, with a record 250,000 British nationals departing last year. By contrast, countries like the UAE (Dubai and Abu Dhabi) are welcoming an influx of these departing fortunes.
Why the UAE?
- Zero personal tax, zero dividend tax, zero inheritance tax, and just a 9% corporate tax—an irresistible package compared to the UK’s new worldwide tax net.
- Tangible benefits include luxury living, global connectivity, and no threat of sudden fiscal changes—making Dubai the world’s new capital for global millionaires.
The Broader Implications
Analysts warn that Britain’s policy gamble may shrink its tax base more than boost revenue. With non-doms and the ultra-wealthy gone, related industries—from luxury real estate and financial services to philanthropy—are beginning to feel cascading effects.
Tax professionals, including Sarthak Ahuja, highlight that the UK’s sudden moves expose deeper questions: Should democracies chase short-term tax revenue at the cost of losing global talent and capital? Or is it an overdue reset for fairness amid growing global inequality?
Conclusion
The UK’s abolition of its famed non-dom regime, along with successive tax hikes and a looming exit tax, has triggered an exodus of the rich—dramatically shifting the global wealth landscape. As CA Sarthak Ahuja points out, the UAE stands as the biggest beneficiary, evolving from a business-friendly outpost into the world’s new “safe haven for wealth.” The story is far from over—the true impact, both on Britain’s finances and global migration trends, will unfold in the years to come.
