Why Britain’s New ‘Exit Tax’ Is Pushing Millionaires to Dubai: The Mittal, Herman Narula & HNW Migration Story

1. Introduction

The headline number says it all: 16,500 millionaires are projected to leave the UK in 2025, according to the Henley Private Wealth Migration Report—and a striking share of them are pivoting to Dubai, now seen as the modern-day tax haven for UK investors. The reason is simple: Britain’s new exit tax. This policy—essentially a 20% UK exit tax on millionaires that includes unrealised gains through the new “settling-up charge”—is fast-tracking a wave of wealth flight unlike anything the UK has seen in decades.

High-profile cases like Lakshmi Mittal moves to Dubai and Herman Narula Dubai move spotlight the trend: UK tax reforms for the wealthy are sparking capital flight from UK 2025.

• Mittal: Steel tycoon ditches UK amid Labour's wealth squeeze.

• Narula: Improbable CEO calls Britain exit tax "bonkers," eyes Dubai zero-tax life.​

Stats scream urgency: UK loses twice China's outflow, 10x Russia's.

Along the way, we’ll break down:

• Real migration numbers

• Why the wealthy are “voting with their feet”

• How Dubai gives HNWIs a cleaner slate and clearer upside
  

This blog uncovers how UK Labour government tax plans under Rachel Reeves are fueling this millionaire exodus—and why Dubai’s zero-tax model is the game-changer.

But first, what exactly is this game-changer?

2. What Is Britain’s New Exit Tax?

Britain’s new 20% exit tax (2025) is essentially a charge on unrealised gains imposed on wealthy individuals who leave the UK, making it one of the most consequential UK high net worth tax changes in decades. In simple terms, the government wants to tax gains that haven’t even been cashed out yet, triggered the moment a person becomes non-resident under the UK Statutory Residence Test.

➡ ️ UK exit tax explained for HNWIs: If a high net worth individual relocates abroad—especially after April 2025—the UK can still levy capital gains tax (CGT) on worldwide assets, even if those assets are never sold while the individual lives in Britain. This includes business shares, property portfolios, and long-term investments.

A major component of the reform is the new “settling-up charge”, which acts as a UK tax on unrealised gains for emigrants. It resembles an “end-of-journey” bill—designed to prevent wealthy residents from escaping tax by changing tax residence and domicile rules in the UK. Paired with this is growing debate around UK inheritance tax on foreign assets, intensifying fears of tax uncertainty in the UK.

Human angle:
Imagine this—your startup stake is worth £3 million on paper. You haven’t sold anything. You move abroad.
➡ ️ You may still owe 20% CGT on those paper gains, purely because you left.

Who Does It Hit the Hardest?

• HNWIs/UHNWIs with £1M+ assets

• Founders with large “paper gains”

• Investors holding international or startup equity

• Fuels tax uncertainty in the UK - “a tax trap before you unpack”.
  

These compounded changes are driving unprecedented wealth flight—especially to tax-neutral hubs like Dubai.

3. The Non-Dom Crackdown: End of the UK Non-Dom Regime

The biggest shockwave hitting Britain’s wealthy is the end of the UK non-dom regime, a system that—until now—allowed internationally mobile entrepreneurs to legally minimise taxes through the remittance basis. With the UK non-dom changes 2025, the government is replacing it with a residence-based worldwide taxation model, meaning foreign income, foreign gains, and overseas structures are all pulled into HMRC’s net.

➡ Non-dom abolition impact: Under the new rules, long-term residents will face full UK tax on global earnings, and foreign asset protection sharply diminishes. This shift forms a core pillar of UK tax reforms for wealthy individuals under Rachel Reeves’ tax policy, designed to clamp down on global tax arbitrage.

The most jarring consequence is how these reforms interact with inheritance tax UK vs UAE. While the UK applies IHT on global assets for long-term residents, the UAE (including Dubai) imposes no inheritance tax, widening the gap and accelerating relocation decisions.

Non-Dom vs New Rules (2025)

For many wealthy families, this was the final straw — “This pushed titans like Mittal over the edge.”

4. Real Stories: Mittal, Narula & British Indian Billionaires

Real-world exits from the UK bring the numbers to life. Perhaps the most prominent: Lakshmi Mittal quits UK for Dubai as tax uncertainty pushes billionaires out. The steel-magnate, long based in Britain, has reportedly acquired property on Naïa Island (also referred to as Naa Island) in Dubai — an ultra-luxury enclave designed for global elites — and plans to spend increasing time there.

Advisers close to the family say the looming reforms — exit tax, non-dom abolition, and increased inheritance exposure — left them little choice. For a billionaire with global assets, the UK’s new rules were no small matter: “inheritance tax was the breaking point,” one source told The Sunday Times.

On the entrepreneurial front, Herman Narula, co-founder of tech firm Improbable, didn’t mince words when announcing his move to Dubai. He blasted what he called the “bonkers UK exit tax,” arguing the proposals amount to “anti-entrepreneur” policies that threaten Britain’s startup ecosystem.

Narula said it wasn’t just about exit tax — “it’s about not knowing what the next five budgets are going to hold,” he told The National. The uncertainty, he claimed, makes it too risky for founders to stay.

These high-profile departures reflect a wider exodus of wealthy British Indians and entrepreneurs — showing how UK entrepreneurs in Dubai are increasingly common, and why UK tech founders are moving to Dubai. For many, Dubai’s zero-tax environment and stable fiscal outlook offer a far more attractive base. (Business Today)

Here are quick “profile cards”:

British Indian billionaires leaving the UK due to tax changes like these fuel British Indians in Dubai boom. It's not flight—it's smart arbitrage.

5. Millionaire Migration Stats: UK Millionaire Exodus Numbers

The Henley Private Wealth Migration Report 2025 reveals a historic wealth flight from the UK, with a staggering 16,500 millionaires leaving the UK in 2025, doubling the losses from China and dwarfing other nations. This exodus reflects growing tax uncertainty and capital flight from the UK, driven by new reforms targeting high net worth individuals (HNWIs).​

In contrast, the UAE is the biggest winner, attracting a record 9,800 relocating millionaires in 2025—a 98% surge compared to the previous year’s 6,700 arrivals. This influx underlines Dubai and Abu Dhabi’s position as preferred tax havens offering zero income tax, lifestyle benefits and investor-friendly policies.​

• UK millionaire migration statistics show a net loss of 10,800 millionaires in 2024, climbing sharply in 2025.

• The surge in millionaires moving from London to Dubai mirrors broader trends of British workers moving to the UAE for tax relief and stability.

• This shift marks a pivotal moment in global wealth flows, signaling a power transfer from traditional European hubs to Middle Eastern tax-friendly jurisdictions.

UK’s losses and UAE’s gains paint a clear picture of 2025’s millionaire migration battleground.

6. Dubai’s Pull: Tax Haven for UK Investors

The surge of millionaires moving to Dubai can be summed up in one line: Dubai offers what the UK no longer does—zero tax friction and long-term financial clarity. For British expats, the appeal is immediate.
➡ Dubai zero income tax, no capital gains tax, no inheritance tax, and no taxes on investment growth make it one of the world’s most favourable jurisdictions for high-net-worth individuals.

For wealthy families facing the UK’s exit tax and the end of non-dom perks, the tax advantages of moving from the UK to Dubai are night-and-day. Redomiciling wealth to UAE structures allows investors to operate globally without the drag of annual HMRC obligations. Add to that the access to free zones in Dubai for UK businesses, 100% foreign ownership, and an investor-friendly regulatory climate, and you can see why the flow of capital and talent is accelerating. (Maydanfz)

Even with the new UAE corporate tax 9% regime, the overall tax load remains far below the UK — especially for entrepreneurs and investors.

Dubai also wins on asset income. Dubai property tax advantages combined with Dubai vs London rental yields (roughly 7–10% vs London’s ~3%) make it a magnet for property investors seeking higher net returns.

UK vs Dubai Tax Comparison

For HNWIs, the equation is simple: Dubai offers certainty, control, and zero personal taxes — a combination too powerful to ignore.
Discover the different visa options for expats in Dubai 2025 that make relocating tax-efficient.

7. Investment & Lifestyle: Best for UK HNWIs

 For many UK citizens investing in Dubai real estate for tax optimisation, the city offers a rare mix of high returns, zero personal taxes, and world-class living standards. Dubai luxury property for British millionaires has surged, especially in ultra-prime enclaves like Emirates Hills, Palm Jumeirah, Jumeirah Bay Island, Dubai Hills Estate, and the emerging Naïa Island.

Dubai’s real estate market is uniquely attractive because Dubai freehold property for foreigners allows 100% ownership, full repatriation of profits, and access to Dubai family office structures ideal for wealth preservation. Many UK HNWIs now establish trusts, foundations, and SPVs in UAE free zones to ring-fence global assets, often paired with the Golden Visa UAE for investors for long-term residency.

Lifestyle matters too. British families are choosing Dubai for its safety, schooling, elite healthcare, and seamless connectivity — creating a clear UK vs Dubai lifestyle gap in favour of the UAE. For many high-net-worth families, Dubai simply delivers more: more value, more freedom, more upside. 

Check out the top waterfront communities in Dubai for luxury beachfront living for high-net-worth families.

8. How to Move: Steps to Reduce UK Tax by Relocating

How can UK investors relocate to Dubai tax efficiently? Follow these tax optimisation strategies for UK investors to slash liabilities legally.​

• Notify HMRC via P85 form—declare non-residency under Statutory Residence Test; claim split-year treatment for partial-year UK tax only.​

• Cut UK ties: Spend <46 days/year in UK post-move; log travel to prove how to become non-resident in the UK and move to Dubai.​

• Handle UK assets: Report property sales/CGT within 60 days; join Non-Resident Landlord Scheme for rents.​

• Secure Dubai base: Get Golden Visa (AED 2M property), open UAE bank; leverage UAE/UK double tax treaty.​

• Structure wealth: Set up a family office in Dubai for UK HNWIs in DIFC/DMCC free zones—0% corp tax on qualifying income.​

Legal ways to reduce UK tax before moving to Dubai? Time asset sales, QROPS pensions. Done right, zero Dubai tax awaits. (Patrick Cannon)

Learn how to start a business in Dubai 2025 and optimize tax through corporate structures.

9. Conclusion

The impact of UK exit tax on entrepreneurs and founders is clear: high-net-worth individuals are reassessing their residency, with capital flight from UK 2025 accelerating. The pull of Dubai—zero income, capital gains, and inheritance tax, plus world-class lifestyle—makes the decision logical for many. Stories of Lakshmi Mittal, Herman Narula, and British Indian billionaires highlight why relocation is no longer a fringe option.

For UK investors ready to explore the British expat community in Dubai, strategic property investment is a key step. Map Homes Real Estate can guide you to prime luxury estates, ensuring a smooth transition.

Ready for your Dubai pivot? Contact for Golden Visa guidance and start your tax-efficient journey today.