Princess Anne’s children may face inheritance blow with ‘£2.3m bill’ to keep beloved home

offspring, and Peter Phillips, could be staring down the barrel of a gigantic bill if they inherit their mother’s Gatcombe Park estate, according to a top property guru. Nestled on a vast 700-acre plot, the Princess Royal resides at the picturesque location with her husband Sir Timothy Laurence and is joined by her children and grandchildren on the sprawling Gloucestershire grounds.

Zara, along with her rugby legend spouse and their three tots, Mia, Lena, and Lucas, occupy a stately seven-bedroom farmhouse, whilst her sibling Peter cohabits with his family in a secluded cottage within the estate. The Elizabeth II snapped up the property back in 1976, and its value has since skyrocketed to an eye-watering £6million.

In the documentary “Gatcombe Park: A Royal Residence,” pundits chimed in, hinting that Anne’s children might be set to take over the property. correspondent Simon Vigar remarked: “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.”

However, a formidable predicament looms should Zara and Peter indeed become the owners—they could be saddled with an enormous or face losing their family home.

Majesty Magazine’s Editor-in-chief Ingrid Seward also weighed in, saying: “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.”

Terry Fisher from We Buy Any Home gave his professional insight, telling the “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, a property expert has suggested 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,” he 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. 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.”

To ease the inheritance tax burden, Princess Anne could explore 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.

He 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.”