Analysis of the Land Registry’s price paid data shows that in 2009, 5% of all property purchases (562 out of 11,770) in Nottinghamshire cost £325,000 or more. However, in 2024, this quadrupled to 20% (2,449 out of 12,411).
Out of all the regions in England and Wales, Wales experienced the largest growth over the past 15 years, with 18% of properties sold in 2024 costing £325,000 or more, compared with 4% in 2009. The East Midlands came second in the list (22% in 2024 compared with 5% in 2009), followed by the East (49% in 2024 versus 13% in 2009 each).
Julia Rosenbloom,private wealth tax partner at Shakespeare Martineau, said: “With property values steadily rising and the inheritance tax threshold frozen until at least 2030, more families are facing significant tax bills when passing down wealth. However, there are several strategies that can help mitigate this burden.
“Making use of tax-efficient structures such as trusts or family investment companies can ensure assets are passed down in a controlled and tax-effective manner. Additionally, gifting during one’s lifetime and considering charitable donations can all reduce overall inheritance tax liabilities.
“The government has demonstrated its commitment to increase revenue from inheritance tax through changes announced in the October 2024 budget, which included the introduction of an inheritance tax charge on pension pots from April 2027 and restrictions on business reliefs.
“There is still a huge menu of options for tax planning though, and anyone with a potential inheritance tax liability should take specialist tax and legal advice to ensure they are making the best of their situation and maximising the available reliefs and exemptions.”
Inheritance tax is paid if a person’s estate – including their property, money and possessions – is worth more than £325,000 when they die. The rate of inheritance tax is 40% on anything above the threshold.
In the latest financial year (2023/24), inheritance taxes raised a record £7.5 billion for the Treasury – 5.6% more than the previous year (£7.1 billion).
If the main home is being left to children or other direct descendants such as grandchildren, people can take advantage of the residence nil-rate band, introduced in 2017, which will increase the threshold by £175,000 – taking the tax-free allowance to £500,000.
However, the number of properties that were purchased for £500,000 or more in Nottinghamshire in 2024 also increased when compared with 2009 (6% versus 1%), according to the Land Registry’s price paid data.
Lilly Toop, private client legal director at Shakespeare Martineau, said: “As estate values continue to rise while the inheritance tax threshold remains static, there is more for families to fight over.
“Additionally, it provides an incentive to leave a greater proportion of the estate to charity to benefit from a reduced rate of inheritance tax or a spouse or civil partner as those gifts will not attract inheritance tax. Despite being a tax-efficient thing to do, it can create more disputes.
“There are several ways to pass assets down the generations that can be achieved during lifetime to mitigate the tax paid upon death. For example, making lifetime gifts – whether through direct financial support or placing assets in trust – can significantly reduce exposure while ensuring wealth is passed down on your own terms.
“Talking to your family while you are fit and well must be the starting point. Open and honest family discussions are invaluable in avoiding misunderstandings and conflicts. All too often, the disputes we handle arise due to a lack of communication and unexpected provisions in a will that leave loved ones without the financial support they were anticipating.
“It is also important to work with reputable specialist advisers who can help navigate estate planning effectively. Armed with specialist advice, these conversations can not only avoid unnecessary taxation but set the next generation up with the knowledge of what is to come.”
With more than a third (37%) of people saying they are relying on an inheritance to supplement their future finances [iii], rising estate values could see an influx of people contesting their loved ones’ wills, according to Lime Solicitors – leading to costly and upsetting inheritance disputes.
Debra Burton, inheritance disputes partner at Lime Solicitors, said: “As estate values continue to rise while the inheritance tax threshold remains static, there is more for families to fight over.
“Additionally, it provides an incentive to leave a greater proportion of the estate to charity to benefit from a reduced rate of inheritance tax or a spouse or civil partner as those gifts will not attract inheritance tax. Despite being a tax-efficient thing to do, it can create more disputes.
“In many ways, inheritance tax is a tax on those who don’t trust their children. Making lifetime gifts – whether through direct financial support or placing assets in trust – can significantly reduce exposure while ensuring wealth is passed down on your own terms.
“The best way to prevent disputes and financial complications is to work with reputable specialist advisers who can help navigate estate planning effectively.
“Above all, open and honest family discussions are invaluable in avoiding misunderstandings and conflicts. All too often, the disputes we handle arise due to a lack of communication and unexpected provisions in a will that leave loved ones without the financial support they were anticipating.”