Trends in Family Wealth Management: Trusts, Taxation, and Asset Protection

The UK has historically been a leading jurisdiction for family wealth protection, offering advanced trusts, tax relief structures, and inheritance tax mitigation. However, recent regulatory changes have introduced additional transparency measures and tax reforms affecting trusts and high-net-worth families.

1/8/20251 min read

Key Developments Affecting Family Offices & Private Wealth

Mandatory Trust Registration (TRS Compliance)

Under The Trust Registration Service (TRS), all UK-based express trusts and certain offshore trusts holding UK assets must be registered with HMRC.
Non-compliance may result in significant financial penalties and legal exposure.

UK Inheritance Tax (IHT) Considerations

40% inheritance tax (IHT) applies to estates above £325,000 unless tax-efficient estate planning structures are in place.
Lifetime gifts, Business Relief (BR), and Agricultural Relief (AR) can be leveraged to mitigate tax burdens.

Common Reporting Standard (CRS) and Wealth Transparency

The UK participates in CRS, mandating automatic information exchange with 100+ countries, impacting tax compliance for high-net-worth individuals (HNWIs).

Strategic Asset Protection Solutions

Using Discretionary Trusts & Foundations: Establishing UK or Jersey-based discretionary trusts can offer both tax advantages and wealth confidentiality.
Restructuring Wealth Across Multiple Jurisdictions: Diversifying wealth between the UK, Singapore, Switzerland, and the UAE can enhance privacy and tax efficiency.
Utilizing UK Family Investment Companies (FICs): FICs provide an alternative to trusts, allowing families to retain control while mitigating IHT exposure.

Conclusion

To ensure long-term wealth preservation, families must adapt their trust structures and implement robust legal frameworks to navigate the evolving UK tax landscape.