On the very day I am writing this, 8th December 2025, UK politicians are debating a petition rejecting mandatory digital ID, which almost 3 million people have signed. With this in mind, I am continuing this blog series on the future of money, by looking at Asset Protection in a hyper-visible world.
I don’t know what the outcome of the debate will be, it may or may not happen that this Brit Card will come into force, but as a savvy entrepreneur, we should be ready in either case. The goal therefore is to shield your portfolio from overreach, legal attacks or sudden regulation.
I will be looking more specifically at digital ID in a later post, but here are some strategies that I would recommend you start to put in place, to protect your wealth, before it comes.
Disclaimer:
Just because I’m financially independent doesn’t mean you can sue me if you blow your savings on crypto llamas. This blog is for education and entertainment—not financial advice. Before making any money moves, speak to a qualified (and hopefully not-broke) Independent Financial Advisor. You know, the kind with certificates and a filing cabinet.
1. Own a Limited Company
You should own your assets, if possible, in a limited company, especially for real estate, if you haven’t already. Here are some of the benefits you will gain from structuring your portfolio in such a way.
Tax flexibility
If you hold your real estate in your own name, the tax on your profits will be 40% if you are a higher rate taxpayer. Mortgage interest payments will also not be an allowable expense. Under a Ltd company the tax is much more generous. You pay corporation tax at 19%, on profits below £50k and 26.5% on profits between £50-250K. The tax on profits above £250k will be 25%.
As you don’t pay Capital Gains Tax in a LTD Company (Unless you sell the company), you treat any property sale as income and so this would be taxed at 19%, 26.5%, 25% or a combination of, depending on the amount of profit. This is still much better than the 28% in CGT.
Mortgage interest also becomes an allowable business expense, reducing company profits and therefore Corporation Tax, a big win for higher-rate taxpayers.
Higher Borrowing
Lenders may offer more generous loan-to-value (LTV) ratios, especially for expanding portfolios, helping you borrow more than personally.
Shielding personal assets
From a legal standpoint having a LTD company also has its advantages as the company is a separate entity, from the individual i.e. Limited Liability. This therefore protects personal assets from business liabilities.
Portfolio Management
It is easier to refinance and grow a portfolio as the company owns the assets, separating them from personal finances. The lenders therefore look at the profitability of each individual deal and your company’s performance rather than your own, individually.
If you haven’t got a Limited Company yet, I would suggest reading my post Setting Up a Limited Company to Buy Property in the UK. In that post I give you a more detailed look at the benefits and also the pitfalls. I also show you how I set up a Ltd Co. step by step.
2. Set up a family trust
For longer-term asset protection, the Inheritance Tax situation is also a big deal for me. I know that when the time comes my beneficiaries will not be met with a hefty Inheritance Tax bill, as I have set up a Trust which my beneficiaries will be Trustees of. The Ltd Co will go straight into this trust on my passing.
A UK family trust is a legal arrangement for managing and protecting assets for the benefit of family members, often used for estate planning to avoid probate, manage inheritance and potentially reduce inheritance tax. Assets are transferred to trustees who manage them according to the terms set out by the founder (the “settlor”), with the trust’s beneficiaries receiving the benefits. Key benefits include protecting assets from issues like divorce settlements, controlling how and when beneficiaries receive assets and potentially lowering inheritance tax liabilities.
How a family trust works – a few terms
A settlor is the person who creates the trust and transfers assets into it.
The people who legally own the assets and manage them according to the settlor’s wishes are the Trustees: The settlor can be a trustee, along with other family members or a professional (like a solicitor).
The beneficiaries are the people who will benefit from the trust, such as children or grandchildren.
The benefits of setting up a family trust
Asset protection
The trust protects assets from potential claims, such as those from divorce settlements or creditors.
Probate avoidance
Assets in a trust can be transferred to beneficiaries more quickly than going through the lengthy probate process.
Control over inheritance
You can set conditions for when and how beneficiaries receive assets, such as at a certain age or upon graduation.
Tax planning
You can use a trust to legally minimise inheritance tax, especially when combined with other estate planning strategies.
Care for vulnerable beneficiaries
A trust will ensure that assets are managed for beneficiaries who are too young or unable to manage their own affairs.
Considerations and potential drawbacks
Complexity and cost
Setting up and maintaining a trust can be complex and involves legal and administrative costs.
Trustee responsibilities
Trustees have a legal duty to act in the best interests of the beneficiaries and must manage the trust responsibly.
Tax implications
A trust may be subject to Inheritance Tax if it is funded by the settlor who continues to benefit from it.
There are specific tax rules for trusts, and you must register it with HM Revenue and Customs (HMRC) if it is liable for certain taxes.
Making a gift into a trust can have immediate and future inheritance tax consequences if the settlor dies within seven years of making the transfer.
Not for everyone
Trusts are not necessary for everyone and are typically for individuals with significant assets who want to manage their inheritance beyond a simple will.
How to set up a family trust
Consider if a family trust is the right solution for your situation by discussing it with an estate planning professional and or solicitor.
If you decide to go forward, you will need to choose trustees and set out your wishes clearly in a trust deed.
You will need to register the trust with HMRC if it becomes liable for any taxes.
You can set up a trust during your lifetime or as part of your will.
3. Lasting Power of Attorney (LPA)
Should you set up Lasting Powers of Attorney? Well, I have and it has given me peace of mind. It will give you the right to choose who makes decisions on your behalf if you lose mental capacity and to avoid the significant stress, delays and costs of court intervention for your loved ones.
Two Types of LPA
There are two types of LPA in the UK and you should consider both.
The first is the Financial Affairs LPA, which allows your attorney (who you have nominated) to make decisions and manage your money on your behalf if you lose the capacity to do it yourself. You could also give your attorney permission to manage your money, even if you do have capacity.
The second type is Health and Welfare LPA. This gives your attorney the right to make decisions on your care, again, if you lose capacity. This LPA can only be used if you lose capacity unlike the Financial Affairs LPA.
The Benefits of LPA
Lasting Power of Attorney gives you control, now, to decide who will make decisions on your behalf, should you ever lose the capacity to do it yourself. This gives you peace of mind and also will give your family clarity. It will also avoid the complex court of protection processes. This will save your loved ones’ time, expense and undue stress at a time when they will need to look after your finances and health.
4. Wills
Getting your affairs in order whilst you can, is something that will give you such peace of mind. Getting a will drawn up should be of paramount importance, especially if you have dependents. Its just one of those jobs we all put off, but it’s actually so simple to do. Here are some reasons you should have a will:
Control of your assets. This is the only way you can decide who gets your assets. Otherwise, the State’s intestacy laws will decide.
Legal Guardian. You can decide who will be the legal guardians of your children (non-adult).
Prevents family disputes: if your will clearly states who gets what, that should be the end of the matter.
Funeral arrangements: you can decide what type of funeral you want.
Charity: You can make charitable donations.
5. Property Ownership – split titles
If you have bought a property recently, with a spouse or partner, you may remember your solicitor asking how you want to structure the ownership of the home. You will have been given two options: Tenants In Common or Joint Tenants. By default, most people go for Joint Tenants as this means you both own 100% of the property jointly. If one spouse dies, the other automatically inherits the whole of the home. So far so good and most couples would say this is sensible.
However, if the remaining spouse later becomes infirm and needs to move into a care home, the costs of the care will come out of the estate first. This will include the property which may need to be sold. This means that once this is gone, the beneficiaries of the estate, will get nothing when the second partner dies.
The way around this is to consider going for the Tenants in Common option and this is where we tie all the other points together.
Tenants in common
With tenants in common you can split the ownership 50:50 or in what ever proportion you wish. On the death of one partner, their share of the property will be distributed as per their will. Hopefully that partner nominated the other partner as beneficiary in their will AND used a Trust. The surviving partner will be the beneficiary of the trust and will have 100% control of the property. If that partner now becomes infirm, the home will NOT be considered part of the estate, as 50% of the property is ‘in trust’. You cannot sell half a home.
Conclusion
This post is an overview of how to protect your wealth and to highlight some of the things you need to think and speak about, to a tax planner to see if it would be appropriate for you.
As the UK edges toward a future where Digital ID may become reality, the smartest move you can make is to get your financial foundations in order now, long before any regulation forces your hand.
Each of the strategies above strengthens your position, reduces your visibility and gives you more control over how your wealth is managed, passed on and protected. You don’t need to predict the future to prepare for it; you just need to start putting the right structures in place.
In a future post in this series, we’ll dig deeper into Digital ID itself, what’s coming, what’s hype and what you should be watching for. Keep an eye out and sign up to the newsletter, so you don’t miss out.