We worked with a high-net-worth UK landlord who had built a substantial residential property portfolio over a number of years. All properties were held in the client’s personal name, generating strong rental income but also creating increasing exposure to income tax and inheritance tax. As the portfolio and wider estate had grown, the client became concerned about the long-term tax inefficiencies of their existing structure and the impact this could have on family wealth.
A key issue identified during our initial review was the size of the client’s projected inheritance tax (IHT) liability. Based on current legislation, the estate was already facing a significant IHT charge on death. This exposure was expected to increase further in light of upcoming legislative changes, including the planned inclusion of pension assets within the taxable estate from 2027. The client was keen to take proactive action rather than leave their family exposed to unnecessary tax and complexity in the future.
Following a full review of the client’s personal finances, property business, and estate planning objectives, we recommended a strategic restructuring of how both property assets and personal wealth were held. The solution focused on improving overall tax efficiency, protecting long-term family wealth, and ensuring the structure remained flexible in the face of future legislative change. Crucially, the client wanted to retain full control over their property portfolio and day-to-day decision-making, which was carefully factored into the design of the new structure.
The restructuring involved repositioning assets to take advantage of more efficient tax treatment, reducing exposure to higher-rate income tax, and improving the ability to pass value to the next generation in a controlled and tax-efficient manner. The approach balanced immediate tax savings with long-term planning, ensuring that the client’s wealth strategy aligned with both current needs and future family objectives.
As a result of the changes implemented, the client now benefits from annual income tax savings of approximately £17,000. In addition, the restructuring has reduced the projected inheritance tax liability by over £500,000, significantly improving the amount of wealth that can ultimately be passed on to the next generation. These savings were achieved without compromising control, investment flexibility, or the ongoing management of the property portfolio.
Overall, the outcome has materially reduced the client’s exposure to both ongoing and future taxation, strengthened their family wealth planning, and created a more robust and future-proof structure for long-term financial security. The client now has greater confidence that their property business and wider estate are aligned with their long-term goals and protected against foreseeable changes in the tax landscape.
