Latest news with #LakshmiMittal
The Independent
14 hours ago
- Business
- The Independent
Reeves considers U-turn on non-dom crackdown to halt exodus of wealthy
Rachel Reeves is considering climbing down on her non-dom crackdown to stem the flow of ultra-rich taxpayers leaving the UK. The chancellor is deciding whether to U-turn on the decision to tax non-domiciled individuals inheritance tax based on their global assets. The changes, which formed a key part of Labour's general election campaign, have raised concerns about an exodus of the wealthy as they flee in search of lower taxes. And a senior City figure told the Financial Times 'there will most likely be some tweaks to inheritance tax to stop the non-dom exodus'. Billionaire steel tycoon Lakshmi Mittal is among those said to be considering leaving Britain as a result of the chancellor's changes. A spokesman for the Treasury said: 'The government will continue to work with stakeholders to ensure the new regime is internationally competitive and continues to focus on attracting the best talent and investment to the UK.' The non-dom tax loophole, which lets foreign nationals living in Britain avoid paying tax on overseas earnings, was thrust into the spotlight when The Independent first revealed that Akshata Murty, Rishi Sunak's wife, had used it to save potentially millions of pounds. Ms Murty, whose family business is estimated to be worth around £60bn, later said she would no longer claim the status on her worldwide earnings. At the time, she said she did not want her tax status to be a 'distraction for my husband or to affect my family'. Since Labour came to power in July, the UK has lost a millionaire every 45 minutes, with the exodus driven by Labour's tax grabs and a lack of business confidence. Britain lost a net 10,800 millionaires last year, a 157 per cent increase on 2023, including 78 centi-millionaires (worth at least £100 million) and 12 billionaires. They left for other countries mainly in Europe, such as Italy and Switzerland, as well as the United Arab Emirates. Tax planners have repeatedly warned of an exodus of Britain's super wealthy, with many blaming the impact of Ms Reeves' first Budget in October. And Britain experienced its most significant drop in billionaires ever last year, according to the Sunday Times Rich List. The non-dom regime was replaced by the chancellor with a residency tax under which those living in the UK for more than four years are made to pay income and capital gains tax on overseas earnings. Those who stay long enough also face paying inheritance tax on overseas assets.
Telegraph
a day ago
- Business
- Telegraph
Reeves considers reversing non-dom tax raid after millionaire exodus
Rachel Reeves is considering reversing an inheritance tax raid on non-doms amid mounting evidence that it has sparked an exodus of the wealthy. The Telegraph understands the Chancellor is weighing up whether to reverse her decision to expose people's worldwide assets to 40pc inheritance tax. Senior City sources said they had been in talks with the Government about how to 'create something more competitive' adding that the focus has 'very much been on the inheritance tax implications'. Varun Chandra, Sir Keir Starmer's business adviser, is understood to be spearheading the negotiations. Ms Reeves scrapped non-dom status in April, a change that had been widely expected. However, the Chancellor also introduced the sweeping inheritance tax changes, which have been blamed for driving some of Britain's richest people abroad. Leslie Macleod-Miller, the chief executive of Foreign Investors for Britain, told the Telegraph: 'Inheritance tax is certainly the red line. Research conducted by Oxford Economics said that overwhelmingly inheritance tax was the reason why people would be forced to leave.' Those to have left in the wake of the tax changes include Richard Gnodde, Goldman Sachs' most senior banker outside the US, and Aston Villa co-owner Nassef Sawiris. Steel magnate Lakshmi Mittal is also preparing to move abroad. Ms Reeves's decision to look again at the inheritance tax changes suggest they may have sparked a bigger reaction than anticipated. Anthony Whatling at Alvarez & Marsal, who advises the wealthy on how to structure their assets, said: 'The inheritance tax change is perceived by many as the most contentious aspect of the non-dom reforms – complex and globally out of step. 'If the Government wants to keep wealth – and the business that follows it – in the UK, this is the lever it needs to pull.' Reversing the policy would be relatively affordable for the Chancellor. While the overhaul of the non-dom regime is projected to bring in £4.5bn by the end of the decade, only £200m of that is expected to come from the inheritance tax change. Without action, Ms Reeves risks raising far less than hoped from her package of changes. If 25pc of non-doms quit the UK, the Treasury would make no extra money from scrapping the tax status. If a third left, the UK would lose £700m in the first year of the policy, according to the Centre for Economics and Business Research (CEBR). The Office for Budget Responsibility has warned that its forecasts for the amount of cash raised by the changes are highly uncertain, as they hinge on the behaviour of a small group of people who are highly mobile. Foreign Investors for Britain has been lobbying for a simpler tax regime more akin to Italy, where wealthy foreigners can pay a specified annual fee to exempt their overseas assets and income from tax charges. In Italy, this fee ranges from €100,000 to €200,000 a year. Mr Macleod-Miller said he would be 'delighted' if the Government listened to his pleas. He said: 'Every other government is listening to this group, and they're making their tax plans accordingly. But if we continue to drive wealth from this country, the only thing that will happen is that taxes will rise. This will be a country where wealth and growth are simply not welcome.' A Treasury spokesman said: 'The UK remains highly attractive. Our main capital gains tax rate is lower than any other G7 European country and our new residence-based regime is simpler and more attractive than the previous one, whilst it also addresses tax system unfairness so every long-term resident pays their taxes here.
India.com
11-06-2025
- Business
- India.com
Doubled in 5 years..., Why are Indian billionaires buying properties in THESE foreign cities? Is it just a status symbol or...
Doubled in 5 years..., Why are Indian billionaires buying properties in THESE foreign cities? Is it just a status symbol or... Many wealthy Indians are now showing a strong interest in buying luxury homes outside India and specially in cities like Dubai, London, and New York. Over the last five years, this trend has grown significantly. Earlier, only about 10 to 11 per cent of wealthy Indians were investing in foreign properties, but now that number has increased to around 22 per cent. A recent survey called India Luxury Residential Outlook 2025 shows that buying property abroad is no longer just about status. For many, it's a smart way to invest money as it helps them grow their wealth and improve their lifestyle. Big and famous names like Lakshmi Mittal, Adar Poonawalla, and Ravi Ruia are also part of this growing trend. Why are they buying property abroad? According to Aakash Puri, Director at India Sotheby's International Realty, owning property in top global cities like London or New York helps investors gain global recognition because it is seen as a big achievement in social and financial circles. There are three main reasons why rich Indians are now more focused on international real estate: 1. Reliable and Growing Investment In cities like London, Dubai, and New York, property prices have been steadily rising. For example, in Dubai, home prices in prime areas went up by 6.8 per cent in 2024. Experts believe that with Dubai's 2040 Urban Master Plan, prices could rise another 15-20 per cent by 2025 due to major development projects. 2. Protection from Rupee Value Fluctuations When Indians buy property in dollars or pounds, they protect their money from the falling value of the rupee. Since global cities attract talent, businesses, and investors from around the world, property values there usually stay strong or go up. 3. Regular Rental Income Luxury homes in London and New York often attract tenants like business leaders, diplomats, or international students. These homes earn good rental income. For example, in Central London, annual rent returns are usually around 3.5 per cent to 4.5 per cent of the property's value which is considered a solid return. More than just status As per Aakash Puri, luxury property is no longer just a symbol of wealth or social status. Rich Indians now view it as a well-planned investment that gives long-term benefits. It helps grow their capital, improve how they live, and balance their investment portfolios. So, instead of buying homes abroad just to show off, they are making smart, strategic decisions. Their properties are helping them grow their wealth steadily while giving them a better quality of life. That's why the interest in international real estate is rising fast among India's rich.
Economic Times
09-06-2025
- Business
- Economic Times
Overseas luxury real estate: Here's why it is catching the eyes of HNIs
Getty Images Whether it's luxury penthouses in New York or heritage homes in London, high networth Indians are investing overseas. For India's affluent class, luxury real estate is more than a status symbol— it's an investment strategy that blends capital appreciation, lifestyle enhancement, and portfolio diversification. Increasingly, this strategy is looking beyond India's borders. The surge is evident. According to the India Luxury Residential Outlook Survey 2025 by India Sotheby's International Realty, interest in overseas real estate has more than doubled, rising from 10-11% to 22%. For HNIs and UHNIs, global property investments are no longer just aspirational, they are tactical. Whether it's luxury penthouses in New York or heritage homes in London, high networth Indians are investing overseas. Over the years, Indian billionaires like Lakshmi Mittal, Adar Poonawalla and Ravi Ruia have continued to invest in luxury properties in Dubai, London and New York. With global mobility on the rise, investors are confidently staking their claim in the world's most desirable explore why international real estate is catching the eye of India's wealthy, where they are investing, and what savvy investors must watch out capital appreciation: Established global hubs like London, New York and Dubai have long demonstrated robust long-term price appreciation. In 2024, Dubai's prime residential prices rose by 6.8%, with forecasts predicting a further 15-20% rise in 2025, driven by policy reforms, foreign investor incentives, and infrastructure development under the Dubai 2040 Urban Master Plan. These cities attract talent, capital and corporates, all of which contribute to housing demand. For investors, it's a steady compounding story with international hedge: Investing in dollar- or pound-denominated assets creates a natural hedge for Indian investors. During periods of rupee depreciation or domestic inflation, the value of these global assets often holds or appreciates, enhancing the wealth preservation function of the asset income: Luxury real estate in top-tier markets is a magnet for premium tenants—executives, diplomats and international students. In central London, for example, rental yields typically range from 3.5% to 4.5%. New York's Manhattan mirrors this, offering dependable rental income from a well-established tenant steady yield stream enhances the investment's overall return, making it both income- and asset appreciation-driven. Price-to-value comparison: Investing in global real estate today represents a strategic value-driven decision. Consider two prime examples. In Central London, a one-bedroom luxury apartment is currently priced around £850,000, reflecting the city's prestige, stability, and sustained international appeal. Meanwhile, across the Atlantic in New York's prestigious Upper East Side, a comparable one-bedroom condominium is available at approximately $750,000 Factor in better build quality, global amenities, and strong rental yields, and the math starts to make sense. Simply put, Indian investors are weighing not just square footage, but lifestyle, legacy, and long-term value. Lifestyle, education, legacy value: For many, the draw is also emotional and aspirational. A home in Central London or Manhattan offers global mobility, lifestyle cachet, and proximity to elite education institutions. In 2024 alone, over 1,40,000 Indian students received UK study visas—a 35% rise—creating demand for family-oriented housing in areas like Kensington and Ealing. These homes often become multi-generational legacy assets as well, passed down not just for their monetary worth, but for their symbolic global footprint too. Complex regulatory landscape: Each country has its own tax labyrinth. In the US, non-resident investors are subject to federal and state levies, including FIRPTA (Foreign Investment in Real Property Tax Act), which withholds tax on sale proceeds. The UK can impose up to 15% Stamp Duty Land Tax (SDLT) for foreign buyers. Further complexities arise with capital gains, rental income taxation, and estate duties. RBI's LRS cap: India's Liberalised Remittance Scheme (LRS) limits individuals to remitting $250,000 per financial year. Families can pool limits (up to $1 million), but luxury real estate in prime London or New York markets often exceeds this. Compounding the issue is a six-month usage clause, limiting investment flexibility. Legal and local knowledge gaps: Investing abroad isn't just about picking the right city. Buyers must assess title clarity, zoning regulations, developer credibility, and local market dynamics. A lack of due diligence can result in costly mistakes. High maintenance and management costs: Luxury homes demand luxury upkeep. From service charges, building maintenance and tenant management, these hidden costs can dent yields and add to the logistical burden. Changing rules and policies: Markets evolve. New York's rent regulation changes have impacted rental margins. Dubai's shifting visa norms and property ownership reforms could evolve. Global property ownership requires agility and a long-term view. Overseas luxury real estate presents Indian HNIs with a compelling blend of returns, lifestyle, and strategic diversification. But this is a high-involvement play. It demands due diligence, regulatory awareness, and trusted local partnerships. Done right, a home abroad can be more than a financial asset. It becomes a gateway to global living, future-proofing one's wealth, and passing on a legacy with international roots. The Author is DIRECTOR, INTERNATIONAL, INDIA SOTHEBY'S INTERNATIONAL REALTY
Time of India
09-06-2025
- Business
- Time of India
Overseas luxury real estate: Here's why it is catching the eyes of HNIs
Overseas luxury real estate is a high-involvement play. It demands due diligence, regulatory awareness, and trusted local partnerships. Done right, a home abroad can be more than a financial asset. It becomes a gateway to global living, future-proofing one's wealth, and passing on a legacy with international roots. Tired of too many ads? Remove Ads Global real estate appeal Tired of too many ads? Remove Ads Likely hurdles Tired of too many ads? Remove Ads The bottom line (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) For India's affluent class, luxury real estate is more than a status symbol— it's an investment strategy that blends capital appreciation, lifestyle enhancement, and portfolio diversification. Increasingly, this strategy is looking beyond India's surge is evident. According to the India Luxury Residential Outlook Survey 2025 by India Sotheby's International Realty, interest in overseas real estate has more than doubled, rising from 10-11% to 22%. For HNIs and UHNIs, global property investments are no longer just aspirational, they are it's luxury penthouses in New York or heritage homes in London, high networth Indians are investing overseas. Over the years, Indian billionaires like Lakshmi Mittal, Adar Poonawalla and Ravi Ruia have continued to invest in luxury properties in Dubai, London and New York. With global mobility on the rise, investors are confidently staking their claim in the world's most desirable explore why international real estate is catching the eye of India's wealthy, where they are investing, and what savvy investors must watch out global hubs like London, New York and Dubai have long demonstrated robust long-term price appreciation. In 2024, Dubai's prime residential prices rose by 6.8%, with forecasts predicting a further 15-20% rise in 2025, driven by policy reforms, foreign investor incentives, and infrastructure development under the Dubai 2040 Urban Master cities attract talent, capital and corporates, all of which contribute to housing demand. For investors, it's a steady compounding story with international in dollar- or pound-denominated assets creates a natural hedge for Indian investors. During periods of rupee depreciation or domestic inflation, the value of these global assets often holds or appreciates, enhancing the wealth preservation function of the asset real estate in top-tier markets is a magnet for premium tenants—executives, diplomats and international students. In central London, for example, rental yields typically range from 3.5% to 4.5%. New York's Manhattan mirrors this, offering dependable rental income from a well-established tenant steady yield stream enhances the investment 's overall return, making it both income- and asset in global real estate today represents a strategic value-driven decision. Consider two prime examples. In Central London, a one-bedroom luxury apartment is currently priced around £850,000, reflecting the city's prestige, stability, and sustained international appeal. Meanwhile, across the Atlantic in New York's prestigious Upper East Side, a comparable one-bedroom condominium is available at approximately $750,000Factor in better build quality, global amenities, and strong rental yields, and the math starts to make sense. Simply put, Indian investors are weighing not just square footage, but lifestyle, legacy, and long-term many, the draw is also emotional and aspirational. A home in Central London or Manhattan offers global mobility, lifestyle cachet, and proximity to elite education institutions. In 2024 alone, over 1,40,000 Indian students received UK study visas—a 35% rise—creating demand for family-oriented housing in areas like Kensington and Ealing. These homes often become multi-generational legacy assets as well, passed down not just for their monetary worth, but for their symbolic global footprint country has its own tax labyrinth. In the US, non-resident investors are subject to federal and state levies, including FIRPTA (Foreign Investment in Real Property Tax Act), which withholds tax on sale proceeds. The UK can impose up to 15% Stamp Duty Land Tax (SDLT) for foreign buyers. Further complexities arise with capital gains, rental income taxation, and estate Liberalised Remittance Scheme (LRS) limits individuals to remitting $250,000 per financial year. Families can pool limits (up to $1 million), but luxury real estate in prime London or New York markets often exceeds this. Compounding the issue is a six-month usage clause, limiting investment flexibility.: Investing abroad isn't just about picking the right city. Buyers must assess title clarity, zoning regulations, developer credibility, and local market dynamics. A lack of due diligence can result in costly homes demand luxury upkeep. From service charges, building maintenance and tenant management, these hidden costs can dent yields and add to the logistical evolve. New York's rent regulation changes have impacted rental margins. Dubai's shifting visa norms and property ownership reforms could evolve. Global property ownership requires agility and a long-term luxury real estate presents Indian HNIs with a compelling blend of returns, lifestyle, and strategic diversification. But this is a high-involvement play. It demands due diligence, regulatory awareness, and trusted local partnerships. Done right, a home abroad can be more than a financial asset. It becomes a gateway to global living, future-proofing one's wealth, and passing on a legacy with international Author is DIRECTOR, INTERNATIONAL, INDIA SOTHEBY'S INTERNATIONAL REALTY
