Zara Tindall and Peter Phillips may face a hefty tax bill if they inherit Gatcombe Park from Princess Anne
Gloucestershire: So, it looks like Zara Tindall and her brother Peter Phillips might be in for a bit of a shock when it comes to their inheritance. If they inherit their mom Princess Anne’s Gatcombe Park estate, they could be staring down a massive tax bill. A property expert has raised the alarm about this hefty inheritance tax.
Gatcombe Park is a sprawling 700-acre estate where Princess Anne lives with her husband. Zara and her family are already living in a cozy farmhouse on the property, while Peter and his crew are in a cottage nearby. The estate, bought by Queen Elizabeth back in 1976, is now valued at around £6 million.
In a recent documentary, royal experts hinted that Zara and Peter are likely to inherit the estate. Royal correspondent Simon Vigar mentioned that Gatcombe Park is a special place for Princess Anne, and she’s been happy there for decades.
Ingrid Stewart from Majesty Magazine also believes that Zara and Peter would want to keep the estate in the family. Selling it would be the last thing on their minds.
But here’s the kicker: if they do inherit it, they might face a staggering inheritance tax bill of about £2.28 million. In the UK, if an estate is worth more than £325,000, a 40% tax kicks in. That’s a lot of cash to come up with!
The tax payment is usually due within six months of inheriting, which can put a lot of pressure on heirs who might not have that kind of money just lying around. Terry Fisher from We Buy Any Home explained that while the tax bill sounds scary, it probably won’t stop Zara and Peter from wanting to keep the estate, given its sentimental value.
However, they’ll need to figure out how to cover that tax bill. This might mean selling off other assets or even taking out loans. Terry also suggested that Princess Anne could look into some strategies to lessen the tax burden, like gifting parts of her estate early or setting up a trust.
If she gifts the property to her kids at least seven years before she passes, it could be exempt from inheritance tax. Placing the estate in a trust might also help, but that comes with its own set of challenges.
There’s also a chance that Gatcombe Park could qualify for some tax relief if it’s actively farmed. So, there are options, but it’s definitely a complicated situation for the royal family.
