Princess Anne’s children, Zara Tindall and Peter Phillips, could be hit with a hefty inheritance tax bill if they inherit their mother’s Gatcombe Park estate, warns a property expert. The Princess Royal lives on the 700-acre estate with her husband Sir Timothy Laurence, along with her two children and grandchildren.
Zara, her husband Mike Tindall, and their three children, Mia, Lena and Lucas, reside in a seven-bedroom farmhouse, while her brother Peter and his family live in a private cottage on the Gloucestershire countryside grounds. Purchased by the late Queen Elizabeth in 1976, the property is now estimated to be worth a whopping £6million.
In the documentary Gatcombe Park: A Royal Residence, royal experts suggested the children could inherit the istate.
Simon Vigar, royal correspondent at 5 News, said: “I think Gatcombe Park is the forever home for Anne and Tim, it’s obviously where she is happy. She’s been very happy there since the late 1970s.”
Meanwhile, Editor-in-chief at Majesty Magazine Ingrid Stewart said: “I think it’s absolutely no doubt that Zara and Peter will keep Gatcombe going, the last thing in the world they’d want to do is to have to sell it and they won’t.”
Gatcombe Park estate is thought to be worth £6million
(
Image:
(Image: GETTY))
But Zara and Peter may face a monumental issue should they indeed inherit the estate – a giant tax bill.
Terry Fisher of We Buy Any Home shared his expertise, explained: “If Gatcombe Park is valued at £6million, inheritance tax (IHT) could be substantial.
“In the UK, inheritance tax is currently charged at 40% on estates exceeding the £325,000 threshold, unless exemptions or reliefs apply.”
With these figures in mind, the property expert suggests Zara and Peter could be looking at a staggering tax bill of “approximately £2.28 million on inheriting the property”, assuming no other reliefs or exemptions are available.
“The payment is typically required within six months of the inheritance, which can create additional pressure on heirs who may not have immediate access to liquid assets,” he added.
Terry also believes that while the price tag appears daunting, it is unlikely to deter Zara and Peter from inheriting the estate, given its practical and sentimental value.
Princess Anne and her daughter, Zara Phillips
(
Image:
Sebastian Frej/MB Media/Getty Images)
“That said, the size of the tax bill could complicate the decision, as the heirs would need to ensure they have sufficient financial resources to cover it,” he added.
“This might involve selling other inherited assets, taking out loans, or restructuring their personal finances to meet the tax obligations without needing to sell Gatcombe Park itself.”
In a bid to ease the inheritance tax burden, Terry says Princess Anne could explore several strategies to ease the process, such as gifting assets early, setting up a trust, and agricultural or business relief.
Should the late Queen’s daughter gift the property or portions of her estate to her children at least seven years before her death, the value could be exempt from inheritance tax.
He adds: “Placing the property in a trust may shield it from some tax liabilities, although this comes with complexities and ongoing management costs.”
As for the Agricultural or business relief option, this depends on how Gatcombe Park is used.
He explains: “It may qualify for certain reliefs, such as Agricultural Property Relief, which can reduce IHT liability if the land is actively farmed.”