Princess Anne's children, Zara Tindall and Peter Phillips, could be hit with a hefty tax bill if they inherit their mother's Gatcombe Park estate, according to a property expert.
The Princess Royal lives at the 700-acre estate with her husband Sir Timothy Laurence, and her two children and grandchildren also reside there.
Zara, her husband Mike Tindall, and their three children, Mia, Lena and Lucas, live 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 an impressive £6million.
In the documentary Gatcombe Park: A Royal Residence, experts suggested that Princess Anne's children could face challenges if they inherit the estate. Terry Fisher of We Buy Any Home shared his expertise, saying: "If Gatcombe Park is valued at £6million, inheritance tax (IHT) could be substantial."
He added: "In the UK, inheritance tax is currently charged at 40% on estates exceeding the £325,000 threshold, unless exemptions or reliefs apply."
Given these figures, the property expert suggests Zara and Peter could face a staggering tax bill of "approximately £2.28 million on inheriting the property", assuming no other reliefs or exemptions are available, reports the Express.
"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.
"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."
Get the latest news sent straight to your messages by joining our WhatsApp community today.
You'll receive daily updates on breaking news as well as the top headlines across Scotland.
No one will be able to see who is signed up and no one can send messages except the Daily Record team.
All you have to do is click here if you're on mobile, select 'Join Community' and you're in!
If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'.
We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like.
To leave our community click on the name at the top of your screen and choose 'exit group'.
If you’re curious, you can read our Privacy Notice.
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."
Get the latest celebrity gossip and telly news sent straight to your inbox. Sign up to our daily Showbiz newsletter here.
)
/cdn.vox-cdn.com/uploads/chorus_asset/file/25826491/PXL_20250106_223233485.jpg)
)
)
English (US) ·