Princess Anne’s children, Zara Tindall and Peter Phillips, could be hit with a significant inheritance tax bill if they take over their mother’s Gatcombe Park estate, a property expert has warned.
The Princess Royal lives on the 700-acre estate in Gloucestershire with her husband Sir Timothy Laurence, while her two children and grandchildren also call it home.
Zara, along with her husband Mike Tindall and their three kids Mia, Lena, and Lucas, reside in a seven-bedroom farmhouse, and Peter, with his family, live in a private cottage within the grounds.
The estate, purchased by the late Queen Elizabeth in 1976, is now estimated to be worth an impressive £6million. In the documentary Gatcombe Park: A Royal Residence, royal commentators speculated about the potential financial hurdles facing Princess Anne’s offspring, should they take over the estate.
Simon Vigar, a 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.”
Editor-in-chief at Majesty Magazine Ingrid Stewart added in the film: “I think there’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
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Sharing his expertise, Terry Fisher of We Buy Any Home said: “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.”
Based on these figures, he estimates that Zara and Peter could be looking at an inheritance tax liability of “approximately £2.28 million on inheriting the property”, provided no other reliefs or exemptions can be applied. .
“The payment is typically required within six months of the inheritance, which can add to the 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.
“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 explained. “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.”
Zara Tindall and Peter Phillips could face a hefty inheritance tax bill, a property expert warned
(Image: (Image: GETTY))
To ease the inheritance tax burden, Terry says Princess Anne could explore several strategies, such as gifting assets early, setting up a trust, and agricultural or business relief.
If Princess Anne gifts 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 added: “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.”