The lights are not always on at the vast mansion known locally as “Taj Mittal”, the biggest residence on London’s most exclusive billionaire’s row, Kensington Palace Gardens.
Indian-born steel magnate Lakshmi Mittal, one of Britain’s wealthiest non-domiciled residents, bought the 55,000 sq ft property in 2004 for £57 million. Today, it is likely worth six times that, a testament to the incredible rise of London’s prime real estate. Yet, despite its grandeur, Mittal spends only a handful of nights a year under its magnificent roof.
A tax change that may drive the wealthy away
Mittal, Britain’s seventh-richest person, according to the latest Sunday Times Rich List, has long benefited from the UK’s non-domiciled (non-dom) tax status, which allowed him to shield overseas income from British taxation. That era ends on 6 April, thanks to a policy initially introduced by Jeremy Hunt and now reinforced by Rachel Reeves.
The new rules go even further—extending UK inheritance tax to overseas assets. For Mittal and others in his position, that is a step too far. He has now hinted that he is considering leaving the UK. Of course, this could be a negotiation tactic, with his tax advisers seeking better terms from HMRC.
The wealth exodus: Should we care?
London’s billionaires are not universally loved. Many see them as symbols of inequality, hoarding the city’s finest properties while contributing little to everyday society.
For some, their departure would be a justified correction—a long-overdue rebalancing in a city where luxury flats sit empty, while thousands struggle to afford a home. Given that the UK Government is cutting spending on vital services, wouldn’t a wealth tax on these billionaires be the logical solution?
But to dismiss the wealthy entirely is to misunderstand their role in the economy.
Billionaires and Britain’s tax burden
The UK’s tax burden is set to rise to a record 38.3% of GDP by 2027/28. While critics argue that the ultra-rich avoid paying their fair share, the numbers suggest otherwise:
- The top 1% of earners contribute 29% of all income tax, up from 21% in 2000.
- The top 0.01% alone pay 5.6% of all income tax.
- The 60 highest earners in the UK (each making over £50 million a year) paid a staggering £3 billion in tax—1.4% of the total UK income tax receipts.
If these people pack up and leave, the UK Treasury loses billions overnight. These individuals have the resources and mobility to settle anywhere—from Dubai to Switzerland. Most may love London, but they do not love its tax regime.
The risks of driving away the ultra-wealthy
We may not like the idea of billionaires owning vast properties they barely use. We may resent their access to global tax loopholes. But driving them out carries risks.
London thrives on its global reputation as a financial hub. The presence of billionaires boosts the economy, not just through tax revenues, but also through their investments, businesses, and philanthropy.
If the UK pushes too hard, the world’s richest will vote with their feet—and the economic consequences will be felt by everyone.
Rachel Reeves needs every penny she can get to fund Britain’s stretched public services. If billionaires like Lakshmi Mittal disappear, so too does a significant chunk of the nation’s tax income.
We don’t have to like them, but we do need them.
