Princess Anne’s children, Zara Tindall and Peter Phillips, may be facing a considerable inheritance tax bill upon receiving the Gatcombe Park estate, a property specialist has warned. The Princess Royal lives on the expansive 700-acre property near Minchinhampton with her husband Sir Timothy Laurence and some of her children and grandchildren.
Zara lives in a seven-bedroom farmhouse with her spouse, Mike Tindall, and their three offspring, Mia, Lena, and Lucas, whereas her sibling Peter dwells in a secluded cottage within the Gloucestershire estate’s bucolic landscape. Originally acquired by the late Queen Elizabeth in 1976, the estate’s current valuation stands at a remarkable £6 million.
Royal commentator Ingrid Stewart remarked: “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.”
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The documentary “Gatcombe Park: A Royal Residence” featured Royal commentators who predicted the children might acquire the estate. Simon Vigar, the Royal correspondent for 5 News, commented, “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.”
Princess Anne, Zara, and Peter
However, the potential succession could present a significant financial challenge—a hefty tax levy. Terry Fisher from We Buy Any Home elucidates, stating, “If Gatcombe Park is valued at £6million, inheritance tax (IHT) could be substantial. In the UK, inheritance tax is currently charged at 40 per cent on estates exceeding the £325,000 threshold, unless exemptions or reliefs apply.”
With this in mind, the Mirror reports that Zara and Peter could face a hefty 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,” a property expert added.
Despite the daunting price tag, it’s unlikely to deter Zara and Peter from inheriting the estate due to its practical and sentimental value. “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.”
Princess Anne and her daughter Zara
(Image: Sebastian Frej/MB Media/Getty Images)
To alleviate the inheritance tax burden, Princess Anne could consider several strategies such as gifting assets early, setting up a trust, and agricultural or business relief. If the Queen’s daughter gifts the property or parts of her estate to her children at least seven years before her death, the value could be exempt from inheritance tax.
The expert noted: “Placing the property in a trust may shield it from some tax liabilities, although this comes with complexities and ongoing management costs. It may qualify for certain reliefs, such as Agricultural Property Relief, which can reduce IHT liability if the land is actively farmed.”