Zara Tindall and older brother Peter Phillips could face a £2.3million bill on Princess Anne's Gatcombe Park estate, according to a property expert.
The Princess Royal's children could be required to pay a 40 per cent inheritance tax on the Gloucestershire property estimated to be worth £6million.
Anne currently resides at the 700-acre estate with her husband, Sir Timothy Laurence.
The Princess Royal's wider family shares the property's grounds.
Zara Tindall and older brother Peter Phillips could face a £2.3million bill on Princess Anne's Gatcombe Park estate, according to a property expert
PA
Zara, her husband Mike Tindall, and their three children, Mia, Lena and Lucas, reside in a private farmhouse on the Gloucestershire grounds.
Peter and his family reside in a private country size cottage on the estate between the villages of Minchinhampton and Avening.
The main manor house is reported to have five main bedrooms, four secondary bedrooms, four reception rooms, a library, a billiard room and a conservatory.
The Princess Royal has lived at the home since the Queen purchased the property for her daughter and her former husband, Captain Mark Phillips, in 1976.
The Gatcombe Park estate is where Princess Anne has lived since the 1970sPAProperty expert Terry Fisher of We Buy Any Home suggested that based on the property's valuation, inheritance fees could result in a bill of "approximately £2.28million".
He 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. 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."
Terry also believes that the high price tag would unlikely deter Zara and Peter from inheriting the estate, given its practical use and sentimental value.
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Zara Tindall is not a working member of the Royal FamilyGettyFisher told the Express: "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."
The expert suggests the Princess Royal could reduce the cost for her children by gifting assets early, setting up a trust and from agricultural or business relief.
Assets could be exempt from inheritance tax if Princess Anne gift's the property or portions of her estate to her children at least seven years before her death.
He adds: "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."
