Princess Anne's Inheritance Plan Faces £2.3 Million Bill for Zara Tindall and Peter Phillips
Princess Anne’s inheritance plan for her treasured Gatcombe Park estate could face significant financial hurdles, particularly for her children, Zara Tindall and Peter Phillips. The estate, which has been in the royal family since 1976 when it was purchased by Queen Elizabeth II for her daughter, is now valued at approximately £6 million. While the property is a symbol of royal heritage and offers substantial sentimental value, its high valuation could result in a hefty inheritance tax bill for Zara and Peter.
Gatcombe Park, a sprawling 700-acre estate located in Gloucestershire, serves as home to Princess Anne and her husband, Sir Timothy Laurence, along with their extended family. Zara and her family, including her husband Mike Tindall and their three children, Mia, Lena, and Lucas, live in a charming seven-bedroom farmhouse within the estate grounds. Meanwhile, Peter and his family reside in a private cottage tucked within the countryside. Despite the estate's beauty and significance, the financial responsibility attached to it could prove overwhelming for the royal siblings.
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Property expert Terry Fisher, who has analyzed the potential inheritance tax, warns that Zara and Peter could face a bill amounting to approximately £2.3 million, based on the estate's value and current inheritance tax laws in the UK. The inheritance tax rate is set at 40% for estates worth over £325,000, and the payment is generally expected within six months of inheriting. This tight timeframe could add additional strain for heirs who may not have immediate access to sufficient liquid assets.
While the tax burden is substantial, Fisher suggests it is unlikely to deter Zara and Peter from keeping the estate, given the deep emotional ties to it. However, the size of the tax bill could require careful financial planning, including selling other inherited assets, securing loans, or restructuring personal finances to meet the obligation without needing to sell Gatcombe Park itself.
To ease this burden, there are potential strategies that Princess Anne could pursue. One option includes gifting portions of the estate to her children at least seven years before her death, which would potentially reduce or eliminate the inheritance tax. Another strategy could be placing the property in a trust, though this comes with its own complexities and ongoing management costs. Additionally, if Gatcombe Park is actively used for farming, it may qualify for agricultural property relief, further reducing the tax liability.
Ultimately, while Princess Anne's children may be faced with financial difficulties in inheriting such a prestigious estate, their strong connection to Gatcombe Park and their desire to maintain the family legacy could motivate them to find ways to manage the substantial tax bill.
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