Inheritance Tax Receipts at Record High - How to Protect Your Estate in 2025

Inheritance Tax (IHT) was once considered a levy on the very wealthy, a problem for the titled few with sprawling country estates. Fast-forward to 2025, and that’s no longer the case. The latest HMRC figures reveal that inheritance tax receipts hit a record £8.2 billion in the 2024/25 tax year, up from £7.5 billion the previous year.

Why the jump? Property prices, frozen thresholds, and new rules on pensions have pulled more estates, many belonging to entrepreneurs and professionals, into the IHT net.

For high-net-worth individuals (HNWIs), the implications are clear: without proactive estate planning, a significant portion of your wealth could be eroded before it reaches the next generation.

Why Inheritance Tax Is Hitting More Estates in 2025

1. Threshold Freeze Since 2009

The nil-rate band, the amount you can pass on before IHT kicks in, has been stuck at £325,000 since 2009. Meanwhile, the average London home now costs around £740,000. Add in investment portfolios, pensions, and global assets, and it’s easy to breach the threshold without considering yourself ‘ultra-wealthy’.

2. Record Asset Prices

Luxury property values, equities, and even classic car prices have surged in recent years. While that’s good news for net worth on paper, it’s also increasing the taxable value of estates.

3. Pension Rule Changes

From April 2027, pensions will be counted as part of the taxable estate for IHT purposes. The announcement has already prompted a rush of withdrawals, £5 billion was taken from pensions in Q1 2025 alone as people seek to protect assets from future tax liabilites.

4. The Global Mobility Factor

Many HNWIs have cross-border lifestyles, but global assets are still within HMRC’s reach if you are UK domiciled. That means an overseas property portfolio or investments in foreign businesses could also be subject to UK IHT.

5. The Cost of Inaction

At the current 40% IHT rate, an unplanned £10 million estate could see £4 million lost to tax. That’s money that could have gone to heirs, philanthropic causes, or reinvested to grow family wealth.

And because IHT is assessed on the value of the estate at death, volatile asset classes, such as property, can create cash flow problems for beneficiaries. They may be forced to sell assets quickly, often at less-than-optimal prices, just to cover the tax bill.

Strategies to Protect Your Estate in 2025

Inheritance tax planning isn’t about avoiding your responsibilities, it’s about preserving wealth through legitimate, strategic structures. Here are some of the most effective solutions available today:

1. Offshore Structuring

For internationally mobile HNWIs, offshore trusts and holding companies can help shield non-UK assets from IHT. This requires careful planning around residency and domicile rules to ensure compliance with UK law.

Example: An international client with property in France, a business in Singapore, and investments in the US could consolidate holdings through a trust in a favourable jurisdiction. Done correctly, only UK-situs assets may be exposed to IHT.

2. Lifetime Gifting

You can gift up to £3,000 per year without IHT implications, plus additional exemptions for wedding gifts and small annual gifts. Larger gifts made more than seven years before death can also fall outside the estate for IHT purposes.

HNW application: Transferring assets early, such as property to children or significant shareholdings, can reduce the size of your taxable estate while still enabling you to support heirs.

3. Family Investment Companies (FICs)

An increasingly popular tool among HNWIs, an FIC allows you to retain control of assets while transferring ownership to family members in a tax-efficient manner. The company structure can be tailored to protect assets from divorce settlements and creditors.

4. Lending Against Assets

This is where Enness Global plays a unique role. Borrowing against securities, property, or luxury assets can generate liquidity for gifting or investment without triggering a sale, and therefore without incurring capital gains.

Example: Rather than selling shares to gift cash (and paying CGT), an HNWI could secure a loan against their portfolio. The funds can be gifted, invested in tax-efficient structures, or used to settle liabilities in advance.

5. Charitable Giving

If at least 10% of your estate is left to charity, the IHT rate on the rest of your estate can drop from 40% to 36%. Strategic charitable bequests can both reduce tax and create a legacy.

The Role of Cross-Border Expertise

For many HNWIs, estate planning isn’t limited to UK assets, it’s an international puzzle. Different jurisdictions have their own inheritance and gift tax rules, and treaties may or may not exist to prevent double taxation.

This is where specialist, multi-jurisdictional advice becomes essential. A typical cross-border estate plan may involve:

• Restructuring property holdings across multiple countries
• Coordinating tax advice from lawyers in different jurisdictions
• Integrating corporate, trust, and lending solutions into one strategy

How Enness Global Supports HNWIs in Estate Planning

While Enness Global is not a tax advisory firm, our role in protecting estates is practical and financial:

• High-Value Mortgages & Refinancing: Unlock equity from UK or international properties to gift assets or fund planning structures.
• Securities-Backed Lending: Borrow against liquid portfolios to create tax-efficient liquidity without asset disposal.
• Bridging Finance: Secure short-term capital for urgent tax planning moves, asset transfers, or cross-border acquisitions.
• Introductions to Specialist Advisers: We connect clients with the best tax lawyers, trust specialists, and wealth managers to execute complex plans.

Why 2025 Is the Year to Act

With IHT receipts at an all-time high and further fiscal tightening expected in the Autumn Budget 2025, waiting until the rules change could be costly.

The most effective estate plans are made years in advance. Starting now means:

• You can make use of the seven-year gifting rule
• You can restructure before the 2027 pension change
• You have time to integrate cross-border planning without rushing decisions

Key Takeaways for HNWIs

• The inheritance tax UK 2025 landscape is more challenging than ever, with £8.2bn collected last year.
• Asset-rich estates are increasingly vulnerable due to frozen thresholds and rising values.
• Offshore structuring, gifting, FICs, and asset-backed lending are all powerful tools when used correctly.
• Acting early, before political or economic changes, can preserve millions for your heirs.

Enness Global works with HNWIs across the UK and internationally to arrange the finance and connections that make complex estate plans possible. Whether you’re UK-based or globally mobile, we can help you secure liquidity, restructure holdings, and connect with the right specialists to protect your wealth for generations. Contact us today to see if we can assist you.

Frequently Asked Questions: Inheritance Tax & Estate Planning in 2025

1. Why are inheritance tax receipts at a record high in 2025?

Record asset prices, frozen IHT thresholds since 2009, and upcoming pension rule changes have pushed more estates, especially those of HNWIs, over the tax threshold, resulting in the highest IHT receipts on record.

2. Are my overseas assets subject to UK inheritance tax?

Yes, if you are UK-domiciled, your worldwide assets, including international property and global investments, are subject to UK IHT. This makes cross-border structuring vital for internationally mobile individuals.

3. What strategies can help reduce inheritance tax exposure in 2025?

Popular tools include offshore structuring, lifetime gifting, Family Investment Companies (FICs), asset-based lending, and strategic charitable giving. When used correctly, these can significantly reduce an estate's taxable value.

4. How can Enness Global support my estate planning?

Enness arranges high-value mortgages, securities-backed loans, and bridging finance to unlock liquidity for estate planning. We also introduce clients to leading tax, trust, and cross-border advisers to help build compliant and effective wealth-preservation strategies.