Super-rich people are leaving London after Britain's non-domestic tax was removed. Photo- This picture is generated by AI
Smart View- Complete news, in short words
Digital Desk, New Delhi. Britain abolished the more than 200 years old tax rule ‘Non-Dom’ in April this year. Since then, the real estate map of London is changing rapidly. Many of the foreign-born super-rich are now leaving Britain. To avoid taxes, these rich are selling their mansions worth crores and moving to tax-friendly cities like Dubai, Abu Dhabi, Milan, Monaco and Geneva.
On the other hand, rich people of Indian and Pakistani origin are at the top of the list of new buyers of expensive mansions and luxury bungalows which are continuously becoming vacant in London. Apart from the new rich from India and Pakistan, millionaires from Arab countries, America, China, Yemen and Lebanon are also coming forward to buy these mansions and luxury bungalows. These people are investing heavily in London property. Many of them have made their fortune from the technology sector, while some are directly linked to the royal family.
According to a report, in the year 2025, 65 percent of the bungalows worth Rs 181 crore or more have been sold by the same non-doms, who are leaving Britain to avoid taxes after the change in tax rules.
What about Indian businessmen in London?
Indian-origin billionaire Amarveer Singh Pannu has bought a mansion worth 16.4 million pounds (about Rs 172 crore) in Hampstead, a posh area of London. Pannu is planning to convert this mansion into 50 luxury apartments.
At the same time, after changes in tax laws, last month, Indian-origin steel businessman Lakshmi Mittal shifted his tax residence from Britain to Switzerland. Apart from him, many other Indian businessmen are also preparing to leave Britain.
Lakshmi Mittal, owner of steel company ArcelorMittal and one of Britain's top billionaires.
Let us tell you that Lakshmi Mittal is the owner of ArcelorMittal, the world's second largest steel company and is among the top billionaires of Britain. According to the report of The Sunday Times, the new Labor Party government is preparing to increase taxes on the rich, due to which Mittal took this decision. The total wealth of Bharatvanshi Mittal is estimated to be around Rs 1.8 lakh crore. He is the eighth richest person in Britain.
Luxury property prices in Britain jumped 20%
The report anticipates that new buyers will not live in these homes for most of the year. This could increase the risk of homes remaining vacant in expensive areas such as Belgravia, Knightsbridge and Mayfair. Experts believe that this may also affect London's global competitiveness and economic health.
Will this harm Britain's economy?
This decision of the British government now seems to be turning into a headache. Industrialists like Mittal not only pay huge taxes but also bring employment opportunities and huge investments. This policy of the Labor Party has increased the risk of the rich class leaving the country. As a result, many international businesses are now considering pulling out of the UK.
The government argues that this will reduce the debt burden and strengthen welfare schemes, but critics warn that if capital and investment move out, it could be a direct blow to the British economy.
What was the non-dom rule?
The UK non-dom rule was an old tax provision that was in place for more than 200 years. Its benefit was available to those people whose roots were in another country, but they were living in the UK.
Under this rule, if a person's earnings or profits were earned abroad, it was not taxed in the UK until the money was brought into the UK. That means if the money remains outside, it remains exempt from tax, this was called 'remittance basis'.
Not only this, this rule was also a kind of tax shield for rich foreigners, because it saved them from inheritance tax on their foreign assets to a great extent.
Also read- Why was alcohol banned in Saudi Arabia 75 years ago? This royal incident changed the whole story